India is approaching what could be the largest intergenerational wealth transfer in its modern history, estimated at over $105 trillion by 2048. But unlike previous generations, many heirs are no longer keen on running the family business.
Instead, they seek purpose-driven engagement with wealth, asking not just what they inherit, but why, how, and to what end.
Why the next generation is different?
“India’s next generation is stepping in with digital fluency, global exposure, and a deep desire to align capital with conscience,” says Poonam Mirchandani, Managing Director – Head, Wealth Planning & Family Solutions, LGT Wealth India.
Many heirs prefer careers in technology, finance, or creative industries, rather than the family enterprise, which creates both challenges and opportunities for wealth preservation.
How family offices are responding?
Family offices are evolving from owner-operated models to professionalised structures. They bring in external executives, establish independent boards, and use formal governance tools such as family constitutions, investment charters, and succession frameworks.
“These measures ensure that management remains disciplined and transparent, even when heirs prefer not to be hands-on,” says Pradeep Gupta, Executive Director – Head of Investments India, Lighthouse Canton.
Structured education is another key approach.
Mirchandani explains, “Leading Indian family offices enrol next-generation heirs in ‘Wealth with Wisdom’ academies, covering investments, purpose-led investing, and stewardship, not just ownership.”
Similarly, Tanvi Savla, Managing Director & Head – Family Governance, Waterfield Advisors, notes, “Providing financial education tailored to the family’s values fosters a mindset of stewardship rather than ownership, motivating responsible financial behaviour.”
Alternative legacy models
To accommodate disengaged heirs, families use trusts, foundations, and philanthropic vehicles. These models provide oversight and purpose without requiring operational involvement.
Gupta adds, “They allow legacy and values to continue, even if the next generation’s career paths lie elsewhere.” Structured philanthropy, venture philanthropy, and donor-advised funds are also being leveraged to create measurable social impact while preserving family wealth.
Mistakes families often make — and how to avoid them
Experts warn against delaying succession discussions or forcing heirs into operational roles.
Rajul Kothari, Partner, Capital League says, “Unclear roles, late professionalisation, and treating uninterested heirs as passive beneficiaries can lead to conflict and wealth erosion.”
The solution lies in early, transparent communication, defined governance, and curated exposure such as observing board meetings, managing small portfolios, or leading CSR initiatives.
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The bigger picture
This approach transforms heirs from passive recipients into capable, responsible custodians of family wealth. By combining professional management, diversified portfolios, and alternative legacy structures, families can safeguard assets while allowing the next generation to pursue individual ambitions.
Savla says, “Even if they never take operational roles, heirs are equipped to safeguard assets and contribute to the family’s long-term vision.”
India’s family offices are thus not just managing wealth — they are shaping how the next generation interacts with it, ensuring both legacy preservation and purpose-driven engagement.
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