Wealth "Transition" & "Succession": Expert insights · Actionable strategies

A growing number of people are choosing a childfree life, driven by financial considerations, career ambitions, and lifestyle choices. This significant social shift is not just changing family structures — it's fundamentally redefining what we want our legacy to be, and who it's for.

64% of respondents believe wealth planning should not only focus on the "next generation" but also consider the capacity to care for the "previous generation"

Modern succession planning goes far beyond the simple, one-dimensional idea of "leaving everything only to the children." With longer lifespans, the retirement savings of the "previous generation" are often insufficient to cover their living and medical expenses. It's also not uncommon for parents to outlive their children, making their care and support an essential part of succession planning.

Importantly, parents are not necessarily the first legal heirs. Professional wealth planning incorporates tools such as savings insurance plans to safeguard parents' quality of life while ensuring the orderly transfer of wealth across generations. In addition to children, successions plans can also benefit other family members and even charitable initiatives for giving back to the community.

We meticulously plan for asset distribution, but what happens when life takes an unexpected turn? The often-overlooked risk of losing capacity can render even the most carefully accumulated wealth inaccessible, turning oneself and a plan into a predicament.

93% of respondents acknowledge the need for wealth planning against life crises (e.g., sudden death, loss of decision-making capacity), but only 29% have actually taken action

Succession and handling unexpected events both require proper planning. Accidents or illnesses such as dementia, stroke or coma can result in a loss of capacity. Without prior arrangements, family members cannot access your assets, leaving you in a situation of being "asset-rich but cash-poor".

The Enduring Power of Attorney (“EPA”) (under Hong Kong Ordinance Chapter 501) is a standalone and completed legal safeguard that allows your appointed attorney to manage your finances if you lose capacity. A recent trend in insurance products integrates this "authorisation concept". Some savings insurance plans let you pre-designate an authorised person to immediately access the policy's value and can even trigger policy succession should the policyholder lose capacity, giving families greater flexibility to respond to unexpected medical or living needs.

Must enjoying your golden years come at the expense of your children’s inheritance? This perceived trade-off between living well today and leaving a legacy tomorrow is a defining financial dilemma for modern families.

74% of respondents with children say they would use their money wisely to provide financial support for their families

Many high-net-worth individuals use savings insurance plans to balance wealth accumulation and asset protection, and even tax planning. In fact, the general public can adopt the same strategy. These plans offer dual advantages: a steady growth mechanism to preserve and grow assets, and flexible withdrawal options to provide a stable cash flow for living expenses or retirement. This "growth + succession + cash flow" combination not only caters to personal needs but also facilitates succession, that is hard to achieve with a single tool like a will or trust. With early planning, you can plan for both retirement and succession rather than having to choose between them.

The will has long been the cornerstone of estate planning. However, its limitations — from public probate to challenges in updating it — can leave families exposed, proving that it may not be the fortress we imagine.

Will is the No.1 chosen estate distribution tool among respondents

Although drafting a will is common, it carries notable limitations. The probate process can be lengthy, the details of assets and beneficiaries become public record, and it is difficult to adapt to changing circumstances. Validity may also be easily challenged. For example, a will made in Hong Kong before marriage is generally revoked upon marriage. Many families assume a will makes them secure, yet they often overlook these vulnerabilities.

In comparison, savings insurance plans combine wealth management, savings, and targeted legacy transfer with high flexibility. For example, they provide multiple death benefit settlement options, allowing for free adjustment of beneficiary arrangements and the choice to distribute payments in stages or delay them, aligning with family financial needs. Payout details are kept private to ensure confidentiality. Additionally, claims are processed relatively simple compared to other succession tools, providing timely cash flow to help family members bridge the gap during the probate process (which typically lasts several months to a year), and to prepare funds for inheritance taxes that may arises from overseas assets, such as properties, thereby better addressing the diverse succession needs of modern households.

Property often feels like the ultimate tangible asset to pass on. Yet, the emotional weight of a property can obscure practical challenges like market volatility, maintenance costs, and the difficulty of fair division.

Property (40%) and savings and life insurance plans are tied as the 2ⁿᵈ most popular estate planning tools among respondents

Although property is widely popular, it comes with several challenges for succession. Its value is subject to market fluctuations, ownership is often difficult to divide fairly among multiple heirs, ongoing management fees must be paid, and liquidation can be time-consuming and complex. Overseas properties involve potential inheritance taxes and differences in the order of inheritance distribution, which can increase the complexity of succession planning.

In comparison, savings insurance plans offer greater flexibility. They allow you to pre-set asset distribution and allocation ratios, making it easier to achieve fair succession arrangements. Additionally, the plans are relatively simple to manage, making them a necessary succession tool for modern families.

The desire to provide for your children’s future is universal. But the fear that young heirs lack financial management skills often leads to inaction, leaving a well-intentioned plan in limbo.

71% of respondents with children say they want to provide ongoing financial support for them

Since minors do not have the legal capacity to manage assets directly, high-net-worth individuals often establish trusts to hold the assets. However, setting up a trust can be complex, with relatively high entry requirements, and involves considerable costs and procedural considerations.

Many savings insurance plans now incorporate "trust-like" features. Parents can pre-designate contingent owner to inherit the policy benefits and obligations once they reach adulthood or a specified age. Alternatively, they can utilise the plans’ flexible arrangements to make staggered or deferred payouts. This ensures children's daily needs are met while providing them with larger assets at the appropriate age, avoiding the risks of inheritance being misused through a lump-sum distribution.

It’s a common assumption that legacy planning is a conversation reserved for the ultra-wealthy. However, for many middle class families — facing inflation, rising medical costs, and the desire to support their parents, children and their own futures — reveals a pressing need to actively address wealth succession.

89% of the "sandwich generation" respondents agree that succession planning is difficult, with 64% citing "not enough fund" as the main barrier

Succession planning isn’t just about how much wealth you have, but also needs to consider your current financial situation and family structure:

1) Current Financial Situation: Do your assets have liquidity? Do you have any potential debts? If you were to pass away unexpectedly, would your family lose crucial financial support? Would your wealth depreciate due to inflation? Are your investments exposed to the risk of loss in value? If you fall ill, is there a sufficient financial safety net? Would a lengthy inheritance process diminish your estate's value?

2) Family Structure: The legal order of inheritance (spouse, children, parents) may not align with your personal wishes. If you want to prioritise siblings, partners, or other specific family members, consider using a savings insurance plan for succession planning. This allows you to set the inheritance order and distribution proportions, ensuring your true intentions are carried out.

In many cultures, discussing wealth transfer feels taboo — an unwelcome invitation to talk about mortality and conflict. But could this silence itself be the greatest risk to family harmony?

81% of respondents acknowledge the responsibility to make financial arrangements for their families, yet 45% worry that the distribution process could be chaotic and emotionally distressing for my family

Avoiding the topic of succession is the real risk! Many inheritance disputes arise from a lack of consensus or ambiguous asset distribution. Starting the conversation early and openly can help minimise future conflicts.

To start the conversation gently, you can use third-party succession tools such as savings insurance plans as an entry point. Insurance today goes beyond "providing payouts in times of need" to offer comprehensive succession solutions, such as contingent owner or policy segregation mechanisms to build a framework for family discussions. Additionally, inviting a legacy consultant can facilitate discussion among family members, help define guiding principles for wealth management and distribution, ensuring the continuity of family harmony and cohesion.

The sheer scale of ‘legacy planning’ can feel so overwhelming that the most natural response is to delay. But what if the journey begins not with a perfect blueprint, but with a single, manageable step?

80% of respondents say they face difficulties in succession planning

Succession planning doesn't need to be done all at once. You can approach it step-by-step by following these 3 stages:

1) Organise Assets: Take stock of your current financial situation, including assets, liabilities, liquidity, and differences between inheritance tax on overseas assets and the inheritance distribution order, etc.

2) Define Goals: Determine your wealth distribution and usage principles. Who do you want to protect? Do they have the ability and responsibility to manage it? How should assets be fairly allocated?

3) Select Tools: Use succession tools such as savings insurance plans that combine wealth accumulation, liquidity, and succession functions

By methodically working through these steps and with professional guidance, you can establish a robust succession plan that significantly reduces the chances of family disagreements, safeguards your family while giving you peace of mind for yourself.

Many things can change in youth, so why rush to plan your inheritance? This mindset confuses succession planning with an end-of-life task, rather than recognizing it as a dynamic process that evolves with every major life milestone.

Financial planning is never a "set it and forget it" task, yet 37% of respondents still do not review or update their insurance policies regularly

Many believe succession planning can wait until life becomes more "stable." The reality is that no one can predict the unexpected. Starting early isn't about perfecting a plan immediately, but more about selecting the flexible tools that allow for adjustments as circumstances change, including: life stages such as marriage, parenthood, or retirement; personal finances like income growth, investment returns, or new assets; and market shifts such as inflation, tax laws, or regulatory updates.

Currently, there are polarized demands: on one hand, the rise of critical illnesses among the young; on the other, an aging population. Coupled with later marriages, delayed childbearing, blended families, and remarriages after bereavement, the order of inheritance and the validity of wills can become uncertain. Savings insurance plans offer multiple features that enhance flexibility, such as the ability to freely adjust the beneficiaries and allocation ratios, without the need for legal or other expenses. Early planning allows for better leveraging of both wealth growth and inheritance advantages.