DBS survey finds risk-readiness gaps in family offices’ wealth-transfer efforts

[SINGAPORE] Wealthy families in the Asia-Pacific are expected to transfer as much as US$5.8 trillion in wealth to their heirs, but a new report by DBS Private Bank found a significant “risk-readiness gap” that could stall their ambitions.

The report, DBS Asian Family Office Almanac 2026: Assessing the Risk-readiness Gap, found that founders’ desire to remain in control is a key hurdle to wealth-transfer planning.

Only 4 per cent of those surveyed – founders and their benefactors – expect meaningful wealth transfer over the next three years. Around 33 per cent cited founders’ reluctance to relinquish control as the reason for the delay. About 15 per cent of respondents expect to wait until a trigger event such as a death, or financial or operational crisis.

The research identified three priorities that matter most to families: passing wealth to the next generation, holistic risk management, and artificial intelligence and technology. Across all three priorities, the study found gaps in preparedness.

The report draws on two surveys of more than 200 family offices across Asia, Europe and the Middle East, conducted between January and May. It includes qualitative interviews with founders, principals, next-generation leaders and other key decision-makers.

Major findings:

• Families plan for multiple generations, but the next generation is not yet part of the plan. Just 1 per cent of the next generation is leading the design and implementation of the plan. For 43 per cent, the next generation is not involved in wealth planning at all.
• Founders are holding on and transfers are being left to chance. Only 4 per cent expect a meaningful wealth transfer within the next three years, while 29 per cent expect the process to take more than seven years.
• Wealth is global, but structures are still personal. More than half (54 per cent) hold key assets in their personal name; 52 per cent use personal investment companies, while 20 per cent use a professionally administered trust.
• Risk management stops at the portfolio; continuity plans are missing or untested. More than 85 per cent of family offices have no formal business continuity plan or are unsure a plan exists.
• Some of the greatest risks come from within the family. For instance, 27 per cent have not prepared for intergenerational leadership risk; 26 per cent have not addressed governance risks; and 23 per cent have not planned for family conflict.
• Interest in AI is high, but day-to-day use lags. Six in 10 see learning how to adopt AI effectively as their main objective, but 47 per cent have not yet used digital tools or AI in daily operations.

Lee Woon Shiu, DBS group head of wealth planning, family office and insurance solutions, said conversations with clients reveal “how difficult it can be to move from intention to action”.

The hesitation, he added, is understandable as passing on a family legacy and the operating business involves “deeply personal decisions about ownership, leadership and control”.

“Yet those decisions are becoming more pressing as rapid technological change and market volatility test how families manage their businesses and wealth. Family offices need to look beyond immediate obligations and identify weaknesses in succession arrangements, risk oversight and technology before they become costly problems.

“The families best placed to protect and grow their wealth will not necessarily be those with the most assets, but those who address these issues early, while they still have time and ample choices.”