North American family offices are approaching the upcoming transfer of wealth to the next generation with cautious optimism.
A report from RBC and Campden highlights that while many family offices feel confident in their ability to manage intergenerational wealth transfer, a significant portion lacks formal succession plans.
Only 53% have such plans in place, with just 30% of those being formally documented, raising concerns about the readiness for leadership transitions.
Despite this, the next decade is expected to bring a generational shift as younger family members take control of assets and operations, especially in family offices established over the last 20-30 years.
While some families question the qualifications or age of the next generation, educational support and mentorship are increasingly being offered to prepare them for leadership roles.
Although nearly two-thirds of family offices now have investment committees, fewer (40%) have established boards, as many are still led by first-generation wealth creators. Experts suggest the best time to plan for succession is while family members are healthy and united, rather than waiting for a crisis.
A growing number of family offices are integrating responsible investing with philanthropy to align with family values, helping bridge the gap between wealth and legacy transfer. Despite some challenges, those with succession plans feel prepared for the transition, viewing early communication and trust as key components to preserving wealth and family legacy.
