Global Investment Strategy | Global Financial Services

In an era where markets move fast, and geopolitical risks loom large, one long-term force is reshaping the priorities of serious investors: succession planning.

As trillions of pounds in assets transition from one generation to the next, wealth management is undergoing a profound shift. No longer is it just about returns; it’s about governance, preservation, and legacy.

For Global Investment Strategy audiences - high-net-worth individuals, family offices, and professional investors - succession planning has evolved from a distant conversation to a core strategic imperative.

The scale of the transfer

The numbers are staggering! In the UK alone, it's estimated that over £5.5 trillion will pass between generations over the next 20 years. Globally, the number rises closer to $80 trillion. This wealth transfer is unprecedented in size and complexity, blending diverse asset classes, jurisdictions, and family dynamics.

Crucially, today’s beneficiaries are no longer passive heirs. They are active, globally minded individuals with different investment values, risk appetites, and expectations for transparency. As a result, the wealth management business must evolve in tandem, addressing not just how wealth is grown but how it is structured, governed, and meaningfully transitioned.

From performance to governance

Traditional wealth management models prioritised returns, tax efficiency, and portfolio optimisation. While these pillars remain critical, the conversation is expanding beyond asset performance to focus on the sustainability of wealth over generations.

Today's successful wealth strategies increasingly incorporate the following:

· Governance structures: Ensuring that wealth management decisions are made transparently and collectively.

· Legacy planning: Defining the values and mission behind the wealth.

· Education initiatives: Preparing next-generation family members for informed financial stewardship.

Even the most sophisticated portfolios are vulnerable to fragmentation, disputes, and mission drift across generations without a governance framework. Succession planning brings structure to this complexity, building continuity where once there was simply inheritance.

The role of family offices and trust structures

As wealth complexity increases, so does the need for tailored solutions. Family offices - once the preserve of billionaires - are becoming an essential structure for families with meaningful intergenerational assets.

These entities are tasked with much more than just managing money, they need to help with:

· Facilitating multi-generational dialogue.

· Integrating philanthropy, impact, and ESG mandates.

· Navigating global regulatory and tax complexities.

Alongside this, trust structures are evolving too. Modern trusts are no longer solely about shielding assets; they are flexible, strategic vehicles for funding new ventures, encouraging entrepreneurship, and embedding family values into wealth deployment.

Family offices and trusts become essential in turning transient wealth into enduring legacies by embedding family governance into operating models.

Adapting investment strategies for generational change

As new generations step into influence, portfolio strategies must also adapt. The appetite for diversification into private markets, alternatives, tangible assets, and ESG-aligned investments is reshaping traditional wealth management models.

Younger heirs often exhibit a range of different approaches, such as:

· A greater desire for purpose-driven investing.

· Higher tolerance for volatility if aligned with long-term thematic convictions.

· Stronger demand for liquidity and transparency.

Strategic asset allocation must now balance demographic resilience (e.g., tapping into India’s younger growth trajectory) with demographic demand (e.g., healthcare and technology innovation tied to ageing populations).

Succession planning isn’t just about who manages wealth; it’s also about how wealth is allocated in an evolving world.

A critical moment for wealth managers

The stakes could not be higher, with research showing that without early engagement, more than 70% of heirs choose to switch advisers after an inheritance event. This makes succession planning a business continuity issue for wealth managers and a loyalty opportunity if approached correctly.

Firms that build multi-generational relationships through:

· Early financial education programs,

· Personalised advisory experiences, and

· Transparent, cross-generational governance structures,

will not only retain assets but also enhance their role as strategic partners for decades to come.

The wealth transfer is happening now, and forward-looking wealth managers are not waiting until the assets move; they are moving with the families today.

Conclusion: Future-proofing wealth through structured succession

The wealth management industry stands at a turning point. The coming era demands more than performance; it requires foresight, structure, and emotional intelligence.

Succession planning is no longer an afterthought or an end-of-life decision but a proactive strategy for continuity, resilience, and sustainable growth. For Global Investment Strategy clients - investors who prioritise legacy and long-term vision - preparing for generational transition is as critical as portfolio returns.

Those who invest in structure today will pass on assets, empowerment, values, and opportunity. Because the real measure of success is not simply preserving wealth but also preserving the ability of wealth to create meaning across generations.