Family offices are not looking far enough ahead

Family offices are not looking far enough ahead

Family offices are not looking far enough ahead One of the features of family offices is a greater focus on family wealth. But while the time to transfer clients’ wealth is fast approaching, many have not yet started on one particularly important part of the process.

According to a survey conducted by UBS and Campden Wealth Research, 69% of family offices expect a generational wealth transfer within 15 years, reported Financial Advisor IQ. However, only 32.7% of family offices have taken time to lay down succession plans in writing.

The survey, which polled top executives at 262 family offices worldwide, found that 45.7% have no succession plan. A third are working on one, and 14.6% just have a verbal agreement so far. In an accompanying statement, UBS AG’s Family Office Group Head Sara Ferrari said that only 30% of generational wealth transfers actually succeed.

Family offices are grooming the next generation in other ways. The survey found 57.9% are offering work experience at the family office, while 44.3% have their successors placed at outside financial institutions like banks. Around 30% provide dedicated investing training, and 37.9% have programs geared toward impact investing or philanthropy.

While the majority of financial advisors are not reporting much demand for ethical-investing funds, that could change particularly for family offices. In a survey last year, UBS found that families with children born after 1980 are likely to increase their impact investing. This year, more than 40% of family offices said they expect more allocations toward impact and ESG investments.


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