Only 36% of wealthy Indian families have documented succession plans: Study

India’s next generation of wealthy families is increasingly moving towards structured succession planning, professional management and collective decision-making, signalling a gradual shift in how family wealth and businesses are managed across generations, according to a study by Grant Thornton Bharat and Entrust Family Office. 

The report, Custodians of Change: Next Generation of Indian Wealth, found that 68% of respondents believe today’s wealth custodians are more likely than previous generations to take a broader view of family wealth and assess it holistically. Meanwhile, 54% said succession is increasingly being treated as an ongoing planning process rather than an automatic transfer of inheritance while 41% pointed 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, the study examines families with wealth ranging from approximately ₹100 crore to ₹10,000 crore. It explores how India’s family enterprises are adapting their approach to wealth preservation, leadership transitions and governance. 

Succession planning moves beyond inheritance 

The study found that succession is increasingly being viewed as a process of preparation, alignment and continuity rather than a one-time transfer of ownership or leadership. 

Around 42% of families surveyed said they had broad alignment on succession, although their plans were not yet formalised. Another 36% reported having a clear, documented succession plan. The findings indicate that families are increasingly addressing roles, responsibilities and decision-making structures ahead of leadership transitions. 

Decision-making is also becoming more collaborative, with the most common model involving family members working alongside professional management. Families are increasingly relying on committees, professional advisers and formal governance structures to guide major decisions, although the head of the family may continue to have the final say in some cases. The shift, the study suggests, is not necessarily about transferring control away from the family but about establishing greater clarity, accountability and institutional strength. 

Governance models evolve across generations 

Governance preferences vary depending on the generation leading the family enterprise. Founders tend to favour family-led structures supported by advisers, while second-generation leaders show the strongest preference for professional management under family oversight. 

Third-generation respondents increasingly favour hybrid models that combine family stewardship with professional expertise. This points to a gradual transition from decision-making based primarily on individual judgement towards formal structures designed to sustain businesses across generations. 

The involvement of the next generation in business decisions also varies significantly. Among first-generation families, 36% said the next generation already had meaningful influence over decisions or co-led specific business areas. The proportion declined to 18% among second-generation families before rising to 54% among third-generation families. 

Conversely, 18% of first-generation families said the next generation was not involved in decision-making. This share rose to 36% among second-generation families before falling sharply to 8% among third-generation families. 

The findings suggest that families may tighten control during the second-generation transition before allowing greater participation by the third generation. This could reflect changing expectations around leadership, professionalisation, and the distribution of responsibilities as family enterprises mature. 

Wealth preservation gains prominence 

Sreepriya NS, co-founder and CEO of Entrust Family Office, said India’s challenge was increasingly to preserve the wealth it had created, give it purpose and ensure its responsible transfer to future generations. “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,” she said. 

Sreepriya added that the next generation of wealth custodians would need to look beyond net worth to broader measures of value and responsibility, with an emphasis on stewardship and institution-building. 

“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,” she added.