Legacy planning is no longer just for the wealthy or elderly: DBS wealth head

Bank's customers include the young and progress along entire continuum of wealth

- Sheila Chiang

Asia, seen as a safe haven amid geopolitical tensions, is drawing wealth into the region even as its people are becoming more affluent, and a good chunk of it is landing in the wealth hub of Singapore.

The rich and newly rich are turning their attention to preserving and passing on their riches and assets to future generations, and this is prompting a growing demand for legacy planning services from their wealth managers.

One hallmark of the trend for DBS Bank is that this demand cuts across retail and private banking, with its clients across all ages prioritising legacy planning and protection.

It is also spurring change in how Southeast Asia's largest bank is grooming its wealth managers and designing investment products and strategies to serve the new generation, DBS group head of consumer banking and wealth management Shee Tse Koon told The Straits Times.

He cited an example of a high-net-worth client in his 30s who made a fortune in crypto trading. When he became a father, he started engaging with the bank's wealth advisers to do legacy planning.

DBS helped structure a trust for him and the man placed his digital assets under the trust.

"We see the older generation trying to think about transitioning their wealth. We also see some of these young people, as they progress through life, starting to think about legacy planning. Part and parcel of this legacy planning also leverages insurance solutions," Mr Shee said.

Legacy planning and protection refers to the process of organising how one's wealth, assets and values will be preserved, managed and passed on to future generations or beneficiaries.

Insurance solutions involve life insurance or long-term care insurance to protect wealth.

"If you look at the whole wealth management space, there are clearly young people getting engaged much earlier on in the journey of investments and financial planning," he noted.