Indian Family Offices face succession planning gap, study shows

By Puja Sharma

India’s next generation of wealth custodians are not simply inheriting wealth; they are inheriting responsibility. They are taking a broader view of family wealth, treating succession as an ongoing process and bringing a more shared approach to decision-making. According to Custodians of Change: Next Generation of Indian Wealth, a study by Entrust Family Office, 68% of respondents say today’s custodians are more likely to step back, reflect and view family wealth than previous generations. A further 54% say succession is increasingly being treated as ongoing planning rather than inheritance by default, while 41% point to greater comfort with global exposure and cross-border decisions.

Based on qualitative conversations and interviews with family business leaders and wealth custodians across generations, representing wealth ranging from approximately ₹100 crore to ₹10,000 crore, the study provides a view of how India’s family enterprises and wealth ecosystems are changing as they move into their next generation.

Succession is increasingly being treated as a process of preparation, alignment and continuity rather than a single transfer of ownership or leadership. 42% of families surveyed have broad alignment on succession, although it is not yet formalised, while 36% have a clear, documented succession plan. The findings suggest families address roles, responsibilities and decision-making well before a transition takes place.

The way major decisions are made is changing alongside this approach to succession. The most common model is a joint process involving family members and professional management. Families are increasingly using committees, professional advisers and formal governance structures, even as the head of the family continues to retain the final call in some cases. The shift is not about moving decision-making away from the family, but about creating greater clarity, accountability and institutional strength around it.

Governance preferences also differ across generations. Founders tend to favour family-led structures supported by advisers. Second-generation leaders show the strongest preference for professional management with family oversight, while third-generation respondents increasingly favour hybrid models that combine family stewardship with professional expertise. Together, these findings suggest a gradual move from individual judgement towards decision-making structures designed to support the family enterprise across generations.

The role of the next generation in decision-making also changes significantly across generations. Among 1st-generation families, 36% said the next generation already has meaningful influence over decisions or co-leads in specific areas of the business. This falls to 18% among 2nd-generation families, before rising sharply to 54% among 3rd-generation families. Meanwhile, 18% of 1st-generation families said the next generation is not currently involved in decision-making. This rises to 36% in the 2nd generation, before falling to 8% in the 3rd. This suggests families tend to hold decision-making more tightly during the 2nd-generation transition, before opening it up again by the 3rd.

Sreepriya NS, Co-Founder and CEO, Entrust Family Office, said, “India has demonstrated its ability to create wealth. The greater challenge now is to preserve it, give it purpose and pass it forward responsibly. We need to move from thinking about wealth as something we own to seeing it as something we are entrusted with. The next generation of wealth custodians will therefore need to look beyond net worth to life worth, beyond display to dignity, and beyond ownership to stewardship. The future of India’s family enterprises will belong to those who can build institutions, prepare generations and ensure that wealth continues to create value long after its original creators are gone.”