How The Next Gen Can Hold On To Its Inheritance

The next gen must decide whether to be active builders or just passive custodians

- SREEPRIYA N.S.

India's ultra-rich population—those worth over $30 million—is expected to grow 58% from 12,069 in 2022 to 19,119 by 2027. Nearly three individuals join this club daily as startups scale and go public. This sets the stage for India's biggest intergenerational wealth transfer. Over the next few decades, trillions of rupees in business holdings, assets, and investments will move from first-generation wealth creators to their heirs.

Yet many families remain unprepared. Few have formal estate plans, succession strategies, or governance frameworks—raising the risk of wealth erosion, disputes, and fragmentation. Globally, 70% of family wealth is lost by the second generation, and 90% by the third. Poor financial education, weak planning, and legal issues are key reasons. Can India do it differently?

Succession planning For family-run businesses, informal succession practices—verbal assurances, goodwill, and vague arrangements—are no longer enough. As businesses grow more complex, unclear transitions can lead to disputes, instability, and even failure.