Virtually all entrepreneurs worldwide intend to reveal their wealth transfer plans, according to an HSBC report, though most in Asia have yet to start the conversation.
Within Asia, families are known for late or non-existent discussion of death and inheritance due to its taboo nature in local cultures. This is according to the «HSBC Global Entrepreneurial Wealth Report» which said that the majority of entrepreneurs in the region have not yet brought up such conversations, including 70 percent in Singapore, Hong Kong and mainland China.
Overall, only 8 percent of entrepreneurs globally have never intended to bring up their wealth transfer plans.
Staying in the Family
More than one-third of entrepreneurs worldwide are considering an exit from their business within the next five years. Asian respondents prefer to transfer it to the next generation of immediate family instead of selling the business, including 61 percent in mainland China and 53 percent in Hong Kong. Even those in the region seeking a business exit by share disposal, are like likely to sell their full stake and potentially retain influence.
«Our finding indicates that many entrepreneurs are aware of the importance of preparing their wealth for succession but not as many have started to prepare their heirs,» said Henry Lam, APAC head of wealth planning at HSBC’s private banking unit. «Deciding how to deploy family wealth or who will drive the family business in the future is a time that can lead to stress, high emotions and uncertainty.»
