Reshaping the rules of wealth transfer

AS THE world witnesses the largest intergenerational wealth transfer in history, families – especially in Asia – are realising that passing down wealth is no longer simply a legal or financial exercise.

Instead, this pivotal moment is a deeply emotional, cultural and strategic undertaking, complicated by the stark differences in values, worldviews and a gap between the expectations of the baby-boomer generation and their Gen X, millennial and Gen Z successors.

This generational divergence is not just philosophical; it is practical and is already reshaping the way wealth is structured, governed and handed down.

A tale of two generations

Many from the baby-boomer generation, shaped by post-war reconstruction and disciplined work ethics, view wealth as a reward for sacrifice and a safeguard for future security. They tend to prioritise long-term preservation, stable growth and control.

In contrast, millennials and Gen Zs, who came of age in an era marked by digital disruption, climate change and rising inequality, are increasingly viewing wealth as a tool for impact. Our conversations with clients show they are more interested in aligning capital with causes they care about, such as sustainable investing and social entrepreneurship.

These differences are evident not only in how each generation talks about wealth, but also in how they intend to use it.

According to Capgemini’s research, 47 per cent of high-net-worth individuals (HNWIs) under 40 globally consider environmental, social and governance (ESG) as a critical factor in their wealth management decisions, far higher than older cohorts.

Consequences of a value divide

This generational divergence often leads to miscommunication, misalignment and mistrust. The older generation may see the younger generation as reckless, while the younger generation may perceive their elders as rigid and out of touch.

For example, it is not uncommon to see families where the elder generation continues to advocate for investment allocation into traditional physical assets, while younger family members may be interested in impact investments such as climate tech and new energy alternatives.

In such situations, we have seen some families take practical steps to bridge the generational difference through compromise, where both generations agree on a joint approach to investing, such as having the family office seed an impact venture fund.

Bridging the divide: strategy meets empathy

Some strategies prove effective.

First, families can bridge this divide by establishing structured ongoing communication between generations. Many families struggle with succession due to unspoken expectations and misaligned goals rather than a lack of planning.

Facilitated conversations via retreats, governance workshops, and external advisers can help surface different perspectives in a respectful, solution-oriented setting. These dialogues should be framed not just around financial inheritance, but also around legacy, identity and purpose.

Second, developing a shared family mission or values statement is another powerful way to foster alignment.

When wealth is anchored in a collective vision – for example, funding education, supporting community initiatives, or investing in sustainability – it becomes easier to connect across generational lines.

Older family members see their life’s work extended through meaningful legacy, while younger members gain a sense of agency and relevance. Creating family constitutions or charters that articulate these shared values, along with governance protocols, can formalise this unity while allowing space for evolving views.

Third, education plays a pivotal role.

Many generational conflicts arise from knowledge gaps or unfamiliarity with one another’s realities.

Older generations may not fully grasp emerging sectors such as digital assets, climate technology or social entrepreneurship. Conversely, younger generations are yet to build up the deep, valuable business expertise and do not have first-hand experience and hard-earned lessons of business resilience and disciplined investing.

Mentorships and joint projects can cultivate mutual respect and equip family members with a broader understanding of what wealth means.

Fourth, another way to foster engagement and ownership is to create platforms encouraging the younger generations to meaningfully participate in decision-making. These can include philanthropic boards, junior investment committees or innovation funds.

Empowerment of younger family members is more likely to lead to respect for the prior generation’s efforts and accomplishments. At the same time, elders must be willing to let go of rigid control and embrace a collaborative approach that acknowledges evolving definitions of success.

Ultimately, bridging the generation divide is about shifting the narrative of wealth from a static asset to a dynamic legacy. It is about recognising that different generations may define impact differently.

With intentional dialogue, shared purpose and mutual education, families can build both continuity and cohesion. In doing so, they not only preserve wealth, but enrich it with meaning and relevance for generations to come.

Bridge builders

Wealth managers, family office advisers and private banks can play an important role in helping families navigate the complexities of their wealth transition.

Many are increasingly evolving their role, going beyond being a trusted financial adviser to managing intergenerational dynamics as a facilitator, educator and translator.

To stay relevant, wealth managers and private banks need to have the skills to guide families through emotional and strategic conversations, helping them navigate the complexities of legacy building in a modern context.

They should be able to surface value tensions and design inclusive wealth strategies that reflect both continuity and change.

A new model of legacy

In the past, the wealth transfer was largely defined by technical efficiency: ensuring legal clarity, optimising tax planning and preserving assets. Today, the wealth transfer should consider authenticity, alignment and emotional intelligence as the next generation looks to redefine wealth’s purpose.

Families that fail to adapt risk more than just inefficient structures, but also disengagement, disillusionment and the eventual erosion of both assets and relationships.

Those that succeed are the ones who embrace a new paradigm, one in which legacy is not only about what is left behind, but also about what it has built forward.

As Singapore continues to position itself as a leading hub for family offices and private capital, we have a unique opportunity to lead this transformation.

With the intergenerational wealth transfer accelerating across the world and especially in Asia, the Republic is poised to play a central role in shaping how families manage, govern and evolve their wealth for generations to come.

Ultimately, the new model of a dynamic legacy is one that embraces both continuity and change, tradition and innovation, and above all, finds shared values that transcend generations.

The writer is head, Barclays Private Bank, Singapore