Intergenerational wealth transfer: how UHNW families can prepare the next generation

A significant transfer of private wealth is under way. For ultra-high-net-worth families and family offices, the central question is whether the next generation is ready for succession, governance, ownership and long-term stewardship.

Key takeaways:

In 1916, John D. Rockefeller was widely reported to have become the first billionaire. More than a century later, private wealth has reached a very different scale. Forbes counted a record 3,428 billionaires in 2026, with combined wealth of 20.1 trillion US dollars¹.

As private wealth grows, more families are turning to family offices to manage succession, governance and long-term stewardship. Deloitte estimates that the number of single-family offices worldwide could rise to 10,720 by 2030, up from 8,030 in 2024, while their combined assets under management are projected to grow from 3.1 trillion US dollars to 5.4 trillion over the same period².

Behind those figures lies a deeper generational shift. Many of the families building more formal wealth structures today are also approaching the point at which responsibility and stewardship must move from one generation to the next.

Trillions of US dollars in wealth are expected to pass hands by 2048, according to Cerulli Associates. In the US, more than half of that transfer volume is expected to come from high-net-worth and ultra-high-net-worth individuals and families, which together represent only two percent of the country’s households³.

“We are living through what could be one of the largest intergenerational transfers of wealth recorded,” argues Salman Mahdi, Global Vice Chairman of Deutsche Bank Private Bank.

“This is a moment of opportunity for the next generation, but it is also a test,” he adds. “The truth nobody puts in the inheritance paperwork is that this can be a hugely complicated journey, with many difficult moments along the way. Starting discussions earlier does not necessarily guarantee an outcome, but it may give families more time to approach succession in a more structured and considered way.”

Preparing the next generation for wealth transfer could mean addressing practical questions early on: when succession planning should begin, what heirs need to understand, how shared assets should be governed, how digital and global change may reshape stewardship, what purpose should guide family wealth, and where a trusted banking partner may add value.

“Our aim as a private bank and wealth manager is to guide families through this often-challenging process,” Mahdi explains.

Six key succession planning considerations for wealthy families

1. When should wealthy families start preparing the next generation for succession?

For many wealthy families and family offices, succession planning is delayed or treated as an event linked to death, incapacity or a formal handover, rather than a gradual process of preparation. “Succession planning is an ongoing conversation, not just a legal document,” says Mahdi. “My advice is to start it early, honestly, and with kindness and compassion.”

This might be difficult at times because different generations may be carrying private worries. Founders may fear becoming less relevant; successors may fear they are not ready.

Depending on the family’s circumstances, a private bank could facilitate structured conversations and introduce relevant specialists.

That may include mapping assets and future liquidity needs, introducing the next generation to relevant specialists, and creating a structured setting in which younger family members can build financial confidence without being rushed into decision-making roles.

Recent research shows why this matters. Deloitte surveyed 300 family business executives in 2026 and found that 78 percent expected a CEO transition within the next decade. Yet only 57 percent had a succession plan, and fewer than a quarter were actively implementing one. The same survey found that 61 percent of family businesses had at least one family member interested in the CEO role, but only 23 percent considered those candidates ready to take the role in the near term⁴.

Ownership transfer is only part of the challenge; families also need to prepare future generations for the responsibilities that come with it.

“One of the strongest things a family office can do is prepare the next generation to go out into the workforce, earn their own keep and earn their place before coming back to work for the family,” says Aaron Knapik, an industry veteran and Managing Director at Somerston Group, a multigeneration single-family office with origins in shipping dating back to the 1850s. “That is crucial to longevity. If someone is simply given a seat because of birthright alone, the family office is much more likely to struggle to achieve its goals,” he argues.

In that sense, preparation should begin before formal control changes hands, with competence treated as a condition of stewardship rather than an assumption of birthright.

2. How can heirs prepare to inherit complex family wealth?

Inherited wealth can be complex, particularly where it includes operating businesses, trusts structures or interests across jurisdictions. Younger family members may also inherit access to a family office or business before they fully understand how it works.

That is why next-generation wealth education needs to be practical. Future owners need to understand what the family owns, how decisions are made, which risks matter and which advisers are responsible for which areas. They also need a safe setting in which to ask basic questions without being treated as either unready or entitled.

“There is a dangerous gap between knowing inheritance planning matters and actually preparing for it,” says Mahdi. “You need to understand what you own before you own it. Get into the rooms where decisions are made as early as you can, politely and sensitively.”

As family offices expand, they often require more formal reporting, specialist expertise and operational infrastructure.

“Single-family offices have matured. They increasingly look like institutions that manage complex assets, even if their capital ultimately comes from one family,” says Knapik. “They may be owned by one person or family, but they often need to act with sophisticated institutional discipline.”

For future owners, one important consideration of inheriting complex assets means understanding the operating model behind them. As a family office grows in size and sophistication, more knowledge may need to sit closer to the family to ensure the next generation is prepared.

“Private banks can play an important role in helping the next generation build confidence and understanding,” notes Mahdi. “That means education, exposure to specialists and practical conversations about how capital is sourced, assessed and deployed.”

3. How can family office governance support next-generation decision-making?

When wealth is controlled by one founder, authority can be clear even if the arrangements are informal. After a transfer, ownership may be divided among siblings, cousins, spouses and trusts. Without agreed rules, families may struggle to separate ownership from management, or family views from business decisions.

Family office governance can be important, but it needn’t be elaborate to be useful, and no single arrangement is suitable for every family. Depending on the family’s circumstances and professional advice, a family constitution, council, investment committee or clear decision-rights framework may help define who decides what, how potential disagreements are handled and how younger family members become involved.

“Families should establish structure before they need it,” Mahdi suggests. “Build a family constitution, establish a council, separate ownership from management. These steps may help families bring more structure and consistency to decisions about shared wealth.”

At the same time, governance should not detract from what makes a family office different. Privacy, trust, history and family dynamics remain central – and each family office is unique in its requirements. The aim of preparing the next generation for succession is not to remove emotion from family life, but to make important decisions less dependent on personality, timing or informal influence.

“Some family offices face challenges as generations pass because they lose consistency of drive and discipline,” says Knapik. “Different generations may have different interests, so multigenerational planning for family offices needs to be anchored in a clear view of what the family is trying to achieve.”

Clear objectives can help family office governance remain practical rather than procedural, keeping the family aligned even as individual interests evolve.

4. How might digital disruption and global mobility reshape next-generation wealth stewardship?

For the next generation, stewardship is increasingly shaped by technological change and global mobility. Many younger family members are fluent in digital tools, data and online networks. But that does not automatically make them ready to oversee businesses influenced by artificial intelligence, cybersecurity, private markets, digital assets or changing supply chains. “Your inheritance is not a museum piece,” says Mahdi. “It is a living organism in a fast-moving ecosystem.”

For families with global assets, the learning curve may also include emerging markets, differing regulatory frameworks, foreign exchange, residence planning and philanthropy across borders. Artificial intelligence and emerging markets may be relevant considerations for some families, depending on their businesses, assets and long-term objectives.

Flexibility matters. Families cannot always know where the next opportunity will arise, or where the next generation may choose to live and work. For internationally active families, access to coordinated support across relevant markets can be an important consideration, subject to applicable law, local licensing requirements, client eligibility and the services available in each jurisdiction, while younger family members need enough knowledge to challenge advice and make informed decisions, in our view.

Knapik sees that agility as increasingly important. “If you are planning across generations, you need a truly long-term view of the family’s goals and where future generations may live or operate,” he says. “Those decisions can affect how the family is structured and how it manages risk.”

The challenge becomes greater when families operate internationally. “For families operating globally, strategic and legal guidance may be important, depending on the family’s circumstances and jurisdictions involved,” he adds. “Multi-jurisdictional planning is difficult, and families may need appropriately qualified support in each relevant jurisdiction.”

5. Why does family wealth need a clear purpose and how could this help prepare the next generation?

Multigenerational wealth requires a long-term vision and clear sense of direction. Some younger family members may want inherited wealth to reflect priorities such as philanthropy, entrepreneurship or other social or personal objectives. A clearly articulated purpose may provide a framework for discussing those priorities. “Define why your family’s wealth should exist in the world,” says Mahdi. “Not just where it should go, but what it should do.”

For Knapik, those guiding principles could also influence how families put wealth to work with a long-term view. “When a family is deploying capital over decades, the question is not just where the return will come from next year,” he says. “It is how that capital, knowledge and expertise can be used to solve large problems over time.”

In practice, purpose may provide younger family members a clearer role in decision-making, connecting financial decisions to the family’s wider direction. Whether it is useful will depend on the family’s objectives, governance arrangements and individual circumstances.

Mahdi suggests that connecting wealth to clearly articulated values and a long-term vision may help some families frame discussions about stewardship and responsibility. The relevance and effectiveness of that approach will depend on the family’s circumstances. “Without that, even substantial inheritances can leave successors with access to capital but no clear reason to lead,” he argues.

Philanthropy, for example, may give some younger family members a practical context in which to learn about family decision-making before taking on wider responsibility. Depending on the arrangements adopted, it may allow them to assess proposals, manage budgets, review reported outcomes and work with relatives who hold different views. It should not be presented as a simple answer to succession, evidence of verified impact or an approach suitable for every family, but it can provide a forum for learning how the family makes decisions together.

6. How can private banks support next-generation wealth transfer and succession planning?

A private bank cannot decide a family’s purpose or choose its successor. It can, however, support aspects of the process within the scope of the services it is permitted to provide, such as mapping assets, identifying risks, facilitating governance discussions, coordinating with appropriately qualified specialists and giving younger family members structured opportunities to learn. For families with international assets, that coordination can become especially important, according to Mahdi.

“A family’s legacy plan has to come from the family itself,” he says. “When it comes to succession planning, the role of a private bank is to help families ask the right questions, organise the process and bring the right expertise.”

After a major liquidity event, support may include helping families frame immediate priorities, consider longer-term planning themes, and coordinate with relevant external specialists where appropriate.

“Continuity can be an important aspect of a long-term banking relationship,” notes Mahdi. “For Deutsche Bank Wealth Management, building lasting connections is central to how we work with wealthy families and family offices. We aim to understand their structure, coordinate expertise across jurisdictions and help keep their long-term priorities remain in focus.”

In Knapik’s view, that relationship depends on having a single point of coordination backed by specialist expertise. “What family offices often look for is one trusted point of contact who understands the whole relationship and can connect them to the right expertise across the firm. The relationship has to be enduring, based on trust and not transaction alone,” he says.

The needs of wealthy families are often wide-reaching. “For a family office, a banking partner may add value by coordinating relevant banking capabilities and connecting families with appropriate specialist expertise, including where international considerations arise,” Knapik adds.

Some large families and family offices now require governance, reporting, risk management, liquidity planning and global coordination similar to a financial institution, while family relationships remain at the centre. For a banking partner, that means seeking to understand complexity, supporting eligible families within the scope of available services and responding appropriately when important decisions arise.

The 'great wealth transfer' is often described in numbers. For the next generation, the harder task is learning how to own, decide and lead before control arrives. Beginning earlier may give families more time to approach inheritance through education, governance, open conversation and a clear sense of purpose.

As Mahdi puts it: “You did not choose to be born into wealth. But you do choose what you do with it. The most valuable inheritance may not be a number in a bank account, but the knowledge, judgement and sense of responsibility that could help the next generation make its own decisions.”

Wealth transfer FAQs: succession planning, governance and inheritance