‘Legacy is no longer purely dynastic; it  now includes purpose, impact, and  sustainability’

As family structures evolve and personal values shift, an increasing number of Ultra High Net-Worth Individuals (Ultra-HNIs) are redefining legacy not by lineage, but by lasting societal impact.

In an exclusive conversation with Fortune India, Kanchi Gandhi, Managing Director of Kotak Mahindra Trusteeship Services Ltd, sheds light on the growing trend of heirless wealth among India’s affluent.

Gandhi discusses the emotional dilemmas, global parallels, and emerging legacy models that are reshaping the future of wealth transfer in India.

Excerpts:

Q. What’s driving the rise of heirless wealth among India’s affluent, across both new-age and traditional wealth creators?

A. Yes, we are beginning to observe a rise in heirless wealth across both new-age entrepreneurs and traditional wealth creators. This shift is driven by changing family structures, delayed or declining parenthood, global mobility, and evolving personal values.

Among Ultra-HNIs, nearly 1 in 5 are considering global migration, a trend that often results in family dispersion, change in outlook relating to families, and diluted intergenerational wealth transitions. This is fostering a new class of affluent individuals who are reconsidering the very purpose and destination of their wealth.

Q. Is this trend starkly observed in other countries too, and what have been some key emerging strategies there?

A. Globally, particularly in the West and parts of East Asia, the phenomenon of heirless wealth is well-documented. In countries like Japan and Germany, with ageing populations and lower fertility rates, wealth without direct heirs is often redirected through structured philanthropic trusts, foundations, or professional legacy stewards. Family office models have evolved in these regions to focus on “purposeful wealth” aligning capital with societal impact in lieu of familial transfer. (Credit Suisse, 2022; UBS Global Family Office Report, 2023).

Q. How is this shift impacting the conventional model of succession and wealth transfer in India? Any new legacy models emerging?

A. The traditional approach of passing wealth strictly within the family is being supplemented by new structures. The idea of legacy is no longer purely dynastic; it now includes societal contribution, sustainability, and personal purpose. Tools like wills, family constitutions, and inter-generational trusts are being customised to reflect this shift.

Q. What alternatives are heirless individuals exploring?

A. Heirless Ultra-HNIs are increasingly considering:

• Philanthropic foundations

• Endowments to educational or medical institutions

• Impact investing funds

• Donor-advised funds and charitable trusts

• Professional executors

These avenues help ensure that their wealth is preserved, purposeful, and aligned with their personal values.

Q. How are clients redefining legacy in the absence of children? Are values and impact now taking precedence over lineage?

A. Absolutely. The definition of legacy is expanding. The report reveals that a growing number of Ultra-HNIs prioritise "living their purpose" over traditional inheritance. This includes creating a meaningful societal footprint, supporting causes like education, environment, and health, and building institutions or platforms that outlast them. For many, values like impact, purpose, and sustainability now rival, if not surpass, the emphasis on lineage.

Q. Are India’s current legal and tax frameworks equipped to handle succession planning without heirs?

A. While India has made progress with estate and succession planning tools (like wills, trusts, and family offices), the ecosystem is still evolving. Tax structures for charitable giving and bequests remain underutilised, and reforms could help streamline succession planning for heirless clients, including tax-efficient vehicles for wealth distribution. Offerings like professional executorship services can help many families navigate this process efficiently.

Q. What unique challenges or emotional dilemmas do heirless clients face while structuring their legacy?

A. Emotional dilemmas range from the fear of wealth misuse, lack of a trusted beneficiary, to uncertainty around how to institutionalise their values. There is a fear of how their wishes will be translated into reality after their lives, in their absence. The absence of natural heirs also often leads to indecision or procrastination. Many individuals also plan to bequeath part of their wealth to other family members, like nieces and nephews who have been like children to them or with whom they have built deep and strong bonds.

Q. Do you see the emergence of family office-style setups focused more on stewardship and impact than family succession?

A. Yes, definitely. The report identifies a growing role of family offices in supporting purpose-driven ventures, with stewardship becoming a core principle, especially among new-age wealth creators. These setups are not just custodians of capital, but curators of vision and value. There is a visible shift from inheritance to inspiration.

Q. What guidance would you offer to affluent individuals considering legacy planning beyond the traditional family framework?

A. Start early, think purposefully. Articulate what impact you want your wealth to create. Engage professional advisors to build structures that align with your values, be it through philanthropic trusts, long-term endowments, or legacy foundations. And most importantly, treat legacy as an extension of your life’s mission, not just a posthumous plan.