For nearly 80 years, HSBC Trustee has been helping families preserve wealth and legacy

As Asian economies continue their upward trajectory, the needs of high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals for effective intergenerational wealth transfer are also growing.

According to a recent report by the consulting firm McKinsey, an estimated US$5.8 trillion is expected to be transferred to the next generations in the Asia-Pacific region by 2030. However, the 2024 HSBC Global Entrepreneurial Wealth Report reveals that 66 per cent of respondents from Hong Kong do not have a wealth transfer plan, while 64 per cent have yet to create a succession plan for their businesses.

“The percentage of Hong Kong entrepreneurs without a business succession plan is significantly higher than the global average of 52 per cent,” says Christina Tung, HSBC Global Private Banking’s head of trust and fiduciary services for North Asia. “On top of that,” she adds, “more than one in three Hong Kong entrepreneurs are planning an exit in the next five years, compared to a global average of 23 per cent. There is an urgency for these families to plan for the transfer systematically and structurally.”

Wealth transfer planning for the modern family

Given the complexities of intergenerational wealth transfer in a contemporary global context, financial planning has moved beyond estate administration, custodian arrangements and trust structures for tax planning.

“Modern trusts require robust professional trustees who work alongside families, professional advisers and private banking relationship managers to navigate legal and regulatory requirements,” says Brent York, global head of trust and fiduciary services at HSBC Global Private Banking. “The bank’s ambition,” he adds, “is to be the world’s leading wealth manager and global private bank for Asian and international clients and entrepreneurs.”