UBS released its first report on next-generation wealth holders on May 12 and said a global transfer of private wealth worth US$83 trillion is beginning over the next 20 to 30 years. [1, 2]

The bank said the Asia-Pacific region is showing distinct patterns. Heirs there are more likely than those in Europe and North America to link inheritance with family milestones such as the death of a family member, while Western counterparts more often see it as a shift in responsibility. [1, 3, 2]

In Asia-Pacific, many next-generation wealth holders want professional advice on succession and asset planning. UBS said 72% of respondents in the region would first turn to wealth management firms and family offices when planning a transfer of wealth. [1]

The report also found that nearly one-third of families have already started transferring wealth and 25% are actively planning with advisers. UBS said nearly two-thirds of wealthy families involve the next generation in wealth management from young adulthood, and 65% of respondents were already engaged in managing family wealth at ages 20 to 35. [1, 3, 2]

Young Jin Yee, who spoke at a Singapore roundtable on May 8, said succession discussions in Asia were once taboo. "In the past, many of our clients (found it) taboo talking about succession and wealth transfer in Asia, particularly because of our culture," she said. "But today, more and more of our clients are a little bit more open, and they approach it much earlier, and also in a more structured and professional way." [2]

Networking and global connections also rank high when families choose a wealth manager, UBS said. It said 78% of respondents see networking as a differentiating factor. Traditional stocks and bonds remain the main investment choice for most respondents, while interest in sustainable or impact investing is rising. Cryptocurrency ownership among active investors was 11%. [1, 2]

UBS said parents should discuss wealth earlier with children, a view held by more than half of surveyed respondents. The report also pointed to a scheduled follow-up in the 20- to 30-year period over which the estimated transfer is expected to unfold. [2, 1]