The gap between HNW Next-Gen and Fam is caused by technology and succession.

The next generation of ultrahigh-net-worth individuals (UHNWI) is eager to take over the family wealth, but a new study suggests they still need to be ready for the job. BNY Mellon Wealth Management and Campden Wealth asked more than 100 Next Gen UHNWIs, whose family net worth is estimated to be US$77 billion, to participate in a survey

Matthew Carroll Atlanta Braves mentioned that, even though Next Gens seem ready for their role after the succession, they are hesitant to fully take it on because they are worried about how complicated their transition will be and how hard it will be to deal with conflicts in the family business. But the survey found that many Next Gens are open to discussing family governance and trust planning. This could ease some of the worries that are still there. Also, most Next Gens want to invest in non-traditional assets like private markets, hedge funds, and commodities. They also want to use cutting-edge technologies like blockchain in their family offices when they take over

Over two-thirds of Next Gens think it is up to their family businesses to do something about climate change. This is a significant change from their parents' generation, which cares less about the environment. They want to make their family office portfolios more diverse by increasing the amount of growth-oriented investment strategies and adding alternative investments like private markets and hedge funds. They are also more likely than their parents' generation to put money into digital assets and new technologies.

But Ben McGloin, head of advice, planning, and fiduciary services at BNY Mellon Wealth Management, says that this generation's most significant problems need a formal plan and not talking with their families. He says that this gap needs to be fixed if the Next Generation will take over from their parents. Even so, as they take over, the Next Gens want to grow and change their family business. Also, when they take over their families' portfolios, they plan to put sustainability front and center again.

This could be hard for many families, especially in Asia, where families often have strict ideas about what the second and third generations should do. It is also hard for many people who work in family offices and are in charge of the wealth transfer. Many things can make it hard for the Next Gen to connect with their families, but the most important is a need for more understanding. To bridge this gap, it's essential to teach the Next Gen about their responsibilities as they move up in the family and set up clear lines of communication. So, family offices have to take steps to teach their clients about their roles and responsibilities and the transition timeline. This will help them avoid any fights and make the change of power go more smoothly