Asia Third-Generation Wealth Curse Drives Succession Planning, UOB Says

Fears of an Asia third-generation wealth curse are prompting wealthy families across the region to overhaul succession plans, UOB Private Bank said.

Angela Koh, head of wealth planning and family office advisory, noted that equal share distribution is falling out of favour due to risks of rival leadership and disputes, driving greater adoption of trusts that cast heirs as stewards.

She said younger members are also reshaping philanthropy in response to the Asia third-generation wealth curse narrative, favouring structured giving in sustainability and mental health.

Succession dynamics vary across markets, with Malaysian heirs typically returning from abroad, Thai and Indonesian families often avoiding formal governance, and overseas-based Philippine heirs posing tax challenges.

Koh added that defining shared values, enabling candid communication and establishing clear governance rules can help families avoid the Asia third-generation wealth curse.