If you look around the world you rapidly realise that governments everywhere want to increase taxation, even after you die. In addition, Exit Taxes are now being applied so that if you emigrate the government wants a big slice of wealth upfront. So, how do you protect some assets and cash wealth, to pass onto future generations? Sun Life Asia has been looking at this problem;
A new survey from Sun Life Asia reveals that while financial security is regarded as a cornerstone for legacy planning across the region, as many as 60% fear their wealth will not last beyond their children’s generation, underscoring an urgent need for structured planning and financial literacy in this space.
The research, titled Passing the torch: Building lasting legacies in Asia, surveyed over 3,000 respondents across Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam, and highlights the attitudes, behaviours and aspirations surrounding legacy planning in Asia.
With Asia experiencing the largest intergenerational wealth transfer in the coming decade, effective legacy planning is a growing priority for families across the region to navigate – not only in terms of financial assets, but in the preservation of values, traditions and opportunities for future generations.
Building a legacy of security and opportunity
Seven in 10 respondents (70%) say having protection in place to ensure their family’s financial security is the most important factor in legacy planning. This is followed by having a clear and smoothly communicated estate plan to reduce confusion or disputes (53%) and building enough wealth to pass down to the next generation (48%).
Most respondents prefer the wealth they leave behind to fuel long-term growth, with 59% wanting their legacy invested for long-term wealth creation through financial assets, life insurance or the family business. An equally significant number of people would also like their legacy to meet essentials such as housing and healthcare (59%), followed by funding education from school to college or vocational training (56%).
Concerns around legacy not lasting beyond the next generation
Nearly two-thirds (60%) fear their wealth may not last beyond their children’s generation, and more than half (55%) worry that their heirs are not financially equipped to manage inherited assets, underscoring the urgent need for better financial literacy and open family dialogue about money matters. Only 31% of respondents are confident their children will uphold their wishes around wealth transfer, preserve assets, and continue to grow them.
Concerns are most pronounced among the affluent, with 28% describing themselves as “very concerned” about wealth preservation, highlighting that greater wealth often brings greater responsibility and considerably higher stakes.
Legacy is not just about money – it’s about meaning
Asian families define their legacy in multidimensional terms. When asked about the type of legacy they want to leave behind, 41% cite passing on wealth, including money, property, or other valuable assets including family business, followed by family traditions (15%) and wanting to have a personal influence on family and friends (13%).
Worries extend beyond financial matters to the preservation of family values — only 31% of respondents believe their children will uphold family traditions. Diverging priorities among younger generations (58%), limited engagement (39%), misinterpretation of values (30%), and weaker intergenerational bonds (29%) are cited as major factors.
Many underprepared despite growing awareness
Even as awareness of legacy planning grows across the region, preparedness remains low. Only 19% feel fully prepared in terms of legacy arrangements if they were to pass away today, a figure that rises modestly to 29% among the affluent. Just 10% have completed and communicated their legacy plans, while nearly half (45%) have only partial plans, and 31% admit to having nothing at all.
While awareness of tools like wills, trusts and advisors is high, uptake is low. Seven in 10 (70%) know about wills and estate planning documents, yet just 38% use them. Similarly, 67% are aware of financial advisors but only 36% have sought professional advice.
The full report is available here.
Be the first to comment