It is projected that the number of ultra-rich people in India—those with incomes over Rs250crs —will increase by 58% during 2022 -2027. First-generation wealth creators will transfer trillions of rupees in business holdings, assets, and investments to their successors over the next few decades.

A lot of families are still unprepared for this inheritance. There is a greater chance of conflicts and fragmentation because few have formal estate planning, succession plans, or governance frameworks. The confusion will lead to wealth destruction. Around the world, the second generation loses around 70% of family wealth, while the third generation loses around 90% due to a lack of proper inheritance planning. The main causes are inadequate preparation, a lack of financial education, and legal concerns.

Issues:

1. Uncertain business transitions and informal succession plans can cause conflicts, instability, which result in disagreements and potential business failure.
2. Many families avoid planning, often resulting in surprises and legal battles that can last years. Without a sound will, disputes are common.
3. Many have heirs or assets outside, usually in Europe or the United States. From foreign exchange regulations to inter-national tax legislation, this international footprint adds levels of complexity.

Solutions:

1. Structured governance and continuity require legal paperwork, clear successor roles, and organised leadership.
2. The next generation must inherit the skills necessary to maintain and grow wealth. However, inheritance is still a touchy subject.
3. Trusts are an effective tool for preserving wealth, ensuring smooth distribution, and protecting against unexpected claims.
4. Wealth transfer also involves a planned distribution. A growing number of Indian families are switching from unplanned to structured philanthropy through private foundations and trusts.
5. Without proper planning, families face legal and tax risks. Professional advisors are now essential.
6. More women in India are inheriting and managing wealth, shaping long-term, impact-driven strategies with a focus on charity and governance.

Gen Next

Industry leaders like Uday Kotak and Harsh Goenka have voiced concerns about the next generation of wealth inheritors, mostly becoming passive custodians managing family wealth and family offices rather than building new businesses or creating jobs. The question remains: will they build on the legacy with vision and discipline, or will their shifting values and global influences erode hard-earned fortunes?

The great Indian wealth transfer is more than a financial transition; it is a test of legacy, vision, and enterprise. Will the inheritors rise as creators, or merely preserve what others built? True wealth isn’t just about preservation, it’s about progress. True wealth isn’t just about what is passed down but about what is built forward.

India’s wealth transfer moment is here. But, are we prepared? This transition presents an unparalleled opportunity to create lasting legacies for those who engage in proactive estate planning, structured philanthropy, and informed financial strategies.

The next generation has a choice: to sustain, grow, and direct this wealth with foresight or to let it fragment under the weight of unpreparedness. How India’s wealth holders respond today will shape the financial future of generations to come.