SINGAPORE (The Straits Times/ANN): Ultra-high-net-worth families aspire to pass wealth down to future generations, but a new DBS report released on Oct 30 shows that most of them are not ready.
Many have yet to put in place the people, plans and operational systems to actually make it happen.
The report also highlighted that most family offices have not implemented a formal contingency plan to manage disruption. This puts them at risk of being unprepared in the event of a crisis.
The DBS Asian Family Office Almanac 2026: Assessing The Risk Readiness Gap report draws on two surveys of more than 200 family offices across Asia, Europe and the Middle East.
The surveys and in-depth interviews with seven family leaders were conducted between January and May 2026.
Ultra-wealthy families see wealth transfer as a key priority, with 79% wanting to pass wealth down to two or more generations.
However, their actions do not match their intentions, as 43% of the families have yet to involve the next generation in wealth planning.
Lee added that if the first generation builds a plan based solely on its own wishes or beliefs, it will not resonate with the future generations, and “this plan will not be something which the second, third, or even fourth gen will wholeheartedly implement”.
Furthermore, confidence, judgment and leadership capabilities take time to develop, DBS noted.
Early involvement allows their heirs to learn from experience instead of being thrust into the leadership role unprepared.
Ho Kwon Ping, founder and executive chairman of Banyan Group, who was interviewed for the report, stressed the importance of letting heirs build confidence on their own terms.
He encouraged his three children to work outside the family business first, believing that external stints would help them gain work experience and develop self-confidence.
“I told them they should never think they are coming into the family business to help me, or just as stewards for the next generation. That would make it an obligation, which they might regret or resent,” he said.
His eldest child, son Ho Ren Hua, is chief executive of Thai Wah, an agri-food business tied to the Ho family, while his daughter Ren Yung is deputy CEO of Banyan Group and his youngest child, son Ren Chun, is director of corporate development there.
The DBS study found that for many family offices, succession is often constrained by the matriarch or patriarch’s desire to remain in charge. In fact, 33% of respondents cited this factor as the main reason for delaying wealth transfer talks.
As an indication of the control these leaders continue to exert, 54% of participants hold family assets in their own name, and 52% hold the assets under a personal investment company.
Lee noted: “The best way to have control is to own assets in your own name, but that creates a lot of uncertainty and risks.”
“If the founder suffers from dementia or loses mental capacity, the process of transfer and transition of his or her assets to the next generation will not be as seamless as it would be with a proper plan in place,” he added.
This brings to light key-person risk – the threat a family office or business faces when it relies too heavily on just one or two individuals – yet 23% of surveyed families left this vulnerability unaddressed.
Daniel Liang, associate director of Magusta Group, a privately held diversified Hong Kong group with interests in real estate, engineering and food trading, shared how delayed founder planning can pose business risks.
“Death is destiny,” he said. “While we’re still alive, we have a responsibility to put together a plan and have the necessary conversations, because the passing of a keyman doesn’t just affect their family – it also ripples through the companies and the employees who depend on them.”
The report highlighted other risks coming from within the family – 23% have not planned for family conflict.
To prevent internal disputes from fracturing the family legacy, frank and honest dialogue becomes particularly important, especially when navigating complex questions of leadership, governance and succession.
Ho Kwon Ping described how his children have been meeting regularly for years without him or his wife. They discuss issues and debate different perspectives until they reach a compromise, he shared.
“This practice has helped foster cohesion and unity among the siblings, strengthening relationships that can endure beyond my direct involvement,” he said.
Open communication becomes even more important when the family wants to pass down values, not just financial assets.
The ultra-wealthy families interviewed are looking to transfer other forms of family capital – namely intellectual, social, spiritual and human capital.
Aida Soon, deputy group head of wealth planning, family office and insurance solutions at DBS, noted: “Enduring wealth depends on a readiness to carry forward not only financial wealth, but also the values, knowledge, relationships and purpose that give it meaning.”
Beyond the wealth transfer challenges, the report pointed out that ultra-wealthy families do not have business continuity plans (BCPs), with 85% of participating family offices either having no formal BCP, relying on informal arrangements, or being unsure whether one actually exists.
For a family office, resilience depends on having the people, processes and contingencies in place to maintain critical functions when circumstances change or disruption occurs.
“If disruption or a crisis were to happen, how ready are you?” Lee asked.
“The best way to prepare is to plan ahead. If you’re going into a situation cold, you are, in some cases, leaving it to chance.”
Planning also means recognising that regulations and laws are not static and that the business environment is constantly evolving.
Lee said: “Navigating complexity and ambiguity isn’t the exception; it’s the discipline.”
To stay ahead, families must have foresight, stay agile and be aware of changes in their risk environment, he added.
“That is how wealth outlasts regulation and how legacies outlast generations.” -- The Straits Times/Asia News Network
