How wealthy Indian families are rethinking inheritance and succession
Grant Thornton Bharat and Entrust Family Office study notes shift in how family enterprises approach decision-making, preservation of wealth across generations
Wealthy Indian families are rethinking how they manage, govern and transfer their wealth, with succession increasingly viewed as a long-term process rather than an automatic transfer of ownership to the next generation.
According to a study by Grant Thornton Bharat and Entrust Family Office, titled Custodians of Change: Next Generation of Indian Wealth, 68% of respondents said today’s wealth custodians take a broader view of family wealth than previous generations. Another 54% said succession is increasingly being treated as an ongoing process rather than inheritance by default.
The findings point to a gradual shift in how Indian family enterprises approach continuity, decision-making and the preservation of wealth across generations. The study draws on qualitative conversations and interviews with family business leaders and wealth custodians overseeing fortunes ranging from about ₹100 crore to ₹10,000 crore.
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Succession remains a work in progress for many families. While 42% of those surveyed reported broad alignment on succession without a formalised plan, 36% said they had a clear, documented succession plan. The figures suggest that discussions around future leadership and ownership are taking place, although translating family consensus into formal structures remains a challenge.
The shift comes as family enterprises seek to balance the founders’ influence with the expectations of younger generations, who are increasingly involved in decisions about business strategy, governance and wealth allocation.
Professional management gains ground
Decision-making in family businesses is also becoming more structured, with joint processes involving family members and professional management emerging as the most common model, according to the study.
Core concerns
♦ The broader implications extend to India’s family-owned businesses, where continuity depends on more than the transfer of assets.
♦ Formal governance, professional management and the early involvement of successors can help families manage competing priorities while maintaining strategic direction.
Committees, professional advisers and formal governance arrangements are increasingly being used to support major decisions. However, the head of the family continues to retain the final say in some cases, highlighting the continuing influence of traditional family leadership.
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Governance preferences vary across generations. 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 arrangements that combine family stewardship with external expertise.
The trend suggests that families are looking for ways to reduce dependence on individual judgement without relinquishing control over the businesses and assets they have built.
Next gen's role remains uneven
The extent to which younger family members participate in business decisions differs significantly across generations.
Among first-generation families, 36% said the next generation already has meaningful influence over decisions or co-leads specific areas of the business. The proportion falls to 18% among second-generation families before rising to 54% among third-generation families.
The share of families reporting no current involvement by the next generation follows a similar pattern in reverse. It stands at 18% among first-generation families, rises to 36% in the second generation and falls to 8% in the third.
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The findings suggest that decision-making can become more tightly controlled during the second-generation transition before broader participation emerges in later generations. They also point to the challenges of balancing established leadership with the preparation of future decision-makers.
Pallavi Joshi Bakhru, partner and family office leader at Grant Thornton Bharat, said the next generation was assuming responsibility not only for wealth but also for the values, enterprises and long-term purpose associated with it. She highlighted a shift towards more deliberate governance structures that preserve family legacies while allowing businesses to evolve.
Wealth preservation
Cross-border decisions and global exposure are also becoming more prominent, with 41% of respondents identifying greater comfort with international exposure among today’s wealth custodians.
For families with substantial business interests and financial assets, succession increasingly involves questions beyond who will inherit ownership. These include how wealth will be governed, how responsibilities will be distributed and how family enterprises can remain resilient as leadership changes.
Sreepriya NS, co-founder and CEO of Entrust Family Office, said the challenge for India is moving beyond wealth creation towards preserving wealth and ensuring its responsible transfer across generations.
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The broader implications extend to India’s family-owned businesses, where continuity depends on more than the transfer of assets. Formal governance, professional management and the early involvement of successors can help families manage competing priorities while maintaining strategic direction.
As more family enterprises prepare for leadership transitions, the emphasis is shifting towards building institutions that can outlast their founders. The central question is increasingly not just who owns the wealth, but how effectively the next generation can manage it and sustain its value over time.
