Asia family businesses still separate ‘fair’ from ‘equal’ - readiness remains the larger gap

Two-thirds of family-business respondents across Asia believe a fair division of wealth does not always mean an equal split, according to Sun Life Asia’s Passing the Torch 2026 survey. The finding reflects how many families actually allocate ownership and capital when roles, contribution and caregiving differ.

When deciding how to divide wealth, families most frequently cite contribution to the family or business and caregiving responsibilities (18%), followed by financial need (16%) and wider family circumstances (14%).

Willingness is high; formal readiness is not. Seventy-eight per cent of those involved in the family business say the next generation is willing to take over. Only 26% of family-business respondents, however, report having a fully developed succession plan.

Among families where the next generation is not fully willing, the share citing lack of preparation or experience rose from 28% in 2025 to 39% in 2026. Preference to sell or cash out fell from 22% to 12% over the same period. Digital readiness has also become a clearer barrier: 23% of respondents in this group now cite a lack of digital innovation as a reason for hesitation, more than double the 10% recorded in 2025.

Willingness and readiness are different things. Families need to give future leaders the experience and financial knowledge to make informed decisions.

External views confirm the gap. Julius Baer’s Family Barometer 2026 found that only 2.3% of professionals serving ultra-high-net-worth families in Asia consider their clients fully prepared for a sale or succession. Eighty-eight per cent describe families as only somewhat prepared or not prepared at all. Asia also records the lowest level of next-generation involvement in post-sale or post-succession planning among the regions surveyed — just 8.4% of next-generation members are reported to have an equal say.

A separate Wealth Management Institute study focused on family offices found that roughly seven in ten families intend to transfer wealth, yet only about half believe the next generation is ready to engage meaningfully with the family office. Offices that involve the next generation in strategic or operational decisions are 6.5 times more likely to view them as prepared.

Hong Kong and Singapore share the same concern about readiness, but differ in preparation levels. A third of Hong Kong family-business respondents report a fully developed succession plan, compared with 18% in Singapore. Seventy-three per cent of Hong Kong respondents have sought professional advice, against half in Singapore. Full communication of legacy plans to heirs stands at 41% in Hong Kong and 25% in Singapore. Singapore respondents place greater emphasis on building financial knowledge among younger family members.

For private banks, multi-family offices and single family offices, the practical implication is clear. Conversations that stop at ownership percentages and estate documents are incomplete. The larger gap is operational readiness, governance participation, and whether the next generation has been given enough responsibility, early enough, to develop judgement.