Only 36% have a succession roadmap: India’s wealthy families face a generational wealth challenge

Informal succession alignment

The report, Custodians of Change: Next Generation of Indian Wealth, finds that succession is increasingly being viewed as an ongoing process involving preparation, alignment and continuity rather than a one-time transfer of ownership or leadership. However, the relatively low proportion of families with formal plans suggests that many are yet to institutionalise this approach.

The absence of documented succession arrangements can leave important questions unresolved, including who will lead the business, how responsibilities will be distributed and how major decisions will be taken during a transition. Informal understandings may also leave room for disagreements among family members, particularly when ownership and management responsibilities change across generations.

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Professional management

The study highlights a gradual shift towards more structured governance mechanisms. Family businesses are increasingly relying on committees, professional advisers and formal governance structures, with joint decision-making involving family members and professional management emerging as the most common model. However, the head of the family continues to retain the final say in some cases.

Governance preferences also vary across generations. Founders generally favour family-led structures supported by advisers, while second-generation leaders show the strongest preference for professional management with family oversight. Third-generation respondents increasingly favour hybrid models combining family stewardship with professional expertise.

Next-generation influence

The next generation’s involvement in decision-making also reveals an interesting generational pattern. Among first-generation families, 36% said the next generation already had meaningful influence over decisions or co-led specific areas of the business. This proportion falls to just 18% among second-generation families before rising sharply to 54% among third-generation families.

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Meanwhile, the proportion of families where the next generation has no current involvement in decision-making rises from 18% in first-generation families to 36% in second-generation families, before declining to 8% in third-generation families.

Wealth custodians

The report also found that 54% of respondents believe succession is increasingly being treated as ongoing planning rather than inheritance by default, while 68% said today’s wealth custodians are more likely to take a holistic view of family wealth than previous generations.

Sreepriya NS, Co-Founder and CEO of Entrust Family Office, said India’s challenge was no longer just creating wealth but preserving it, giving it purpose and passing it forward responsibly.

The study draws on qualitative conversations and interviews with family business leaders and wealth custodians across generations, representing wealth ranging from approximately ₹100 crore to ₹10,000 crore.

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