Succession planning has gained importance among the rich Indians HNIs turn to family offices for wealth transfer

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With $ 128 billion of wealth expected to change hands in the next 10 years, high net worth individuals ( HNIs) have focused on streamlining the process by setting family offices, among others.

According to the Karvy India Wealth 2017 report, which cites a Credit Suisse report, says family offices manage wealth of around $ 3 trillion — equivalent to 20 per cent of India’s wealth.

Explaining the role of family offices, Karvy Private Wealth CEO Abhijit Bhave said, “To preserve their wealth, HNIs are setting up dedicated units or family offices to manage their wealth and investments.”

He added, “These family offices provide a range services that span from financial to administrative, legal to research.”

With the government of India mulling over bringing in inheritance tax, Mr Bhave, citing an example, said, “Few days back a client, whose two daughters are US citizens, came to us asking how to put their succession plan in place for their daughters. A family office could provide them with the necessary legal advice.”

The first instance of a family office was recorded in the United States when John D Rockefeller, in 1882, set up their family office that even the sixth generation of Rockefeller are reaping the benefits from. The role of a family office are to manage the wealth and to setup structures and process for smooth transition to next generation.