WeDigest > Succession > Planning a Legacy for your Estate
“Estate planning” has long been a buzzword in financial planning, which is the process of organising one’s assets and preparing a smooth transfer to loved ones, in the event of incapacitation or death. Nowadays, one may also come across the term “legacy planning” which can encompass even more abstract concepts, such as crafting a family narrative beyond physical assets or establishing philanthropic causes. While the former evokes death as a trigger point, the latter can be put in place as early as possible to create a legacy even when one is alive.
Wealth transition has been well-established for decades in Europe, but this demand is especially acute in Asia where we are seeing a massive wave of wealth transfer in the next two decades as first-generation wealth creators look to hand over the reins to the next. According to 2020 New Fortune Magazine’s 500 Richest List, ~60% of the wealthy are in the 50+ age bracket, which means that they will be undergoing some form of family succession in the next 10-20 years. Their success is often built on entrepreneurship, and thus they may lack the knowledge or familiarity of wealth management services, leading to the risk of inadequate family estate planning.