Forty percent of the globe’s wealthy population has direct experience of their family inheritance leading to disputes, but the percentage is even higher in India, where 61% of the rich have seen relationships deteriorate into feuds over money, according to a new report. In contrast, 53 per cent of respondents in Singapore, 51 per cent in Hong Kong and 51 per cent in Monaco have experienced family tension as a result of wealth, as against just 11 per cent in Qatar.
The Barclays Wealth Insights report also reveals that 35 per cent of global high net worth individuals do not trust their children or step children or step children to protect their inheritance. “When it comes to passing on wealth, 35 per cent of global high net worth individuals do not trust their inheritance when compared to Australia (59%), North America (61 %) and Europe (62%), the report said. Respondents in Middle-East (78%), Africa (77%) and Latin America (75%) show high levels of trust in their children and step –children when it comes to money management and protecting their inheritance”. Of all those surveyed, 29% of global wealthy believe that inheritance places an “unnecessary burden” on the next generation, with respondents in India (50%), Latin America (44%) and Hong Kong (38%) showing the highest levels of agreement with this. Thirty five percent of respondents in the UK and the same number in Ireland also shared this view, bringing to life the concern parents have when it comes to wealth and succession.
However, an unfortunate drawback of wealth is its ability to cause conflict-and in the context of succession- family conflict.
Rory Gilbert, managing director and head of Middle East and North Africa for International Private Banking at Barclays Wealth, said:”This report provides an in- depth study into the attitudes of high net worth individuals toward family inheritance.”