Just over one-third of Indian family enterprises and wealth custodians have a clear, documented succession plan, while another 42% have broad agreement on succession but have yet to formalise it, according to a new report by Grant Thornton Bharat and Entrust Family Office.

The report also found that 16% of families are currently discussing succession but lack clarity, while a mere 6% do no currently consider it a priority. The findings suggest that while most families have some direction on succession, many are yet to translate their plans into a formal roadmap.

Succession planning refers to the process of preparing for the transfer of leadership, ownership, and management of a family business from one generation to the next. It is about making sure that when change comes, the family is ready for it and the business can continue to thrive through the transition.

The joint study, published on October 13, covers perspectives from family business leaders and wealth holders across generations, representing families with wealth ranging from around ₹100 crore to ₹10,000 crore.

How the rich are approaching wealth preservation

Preserving family wealth remains the top priority for wealthy families, with 78% of custodians surveyed identifying the protection of family wealth, values and continuity as core areas of focus.

However, their focus is expanding beyond safeguarding existing assets. Around 46% are prioritising income growth and diversification beyond their primary business, while 38% want to build a legacy that extends beyond financial returns.

Institutionalising family offices and exploring global exposure are also gaining importance, with 30% of respondents prioritising each of these goals.

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Among first-generation respondents, preservation is the leading concern, while fewer than 20% prioritise diversification beyond the core business. By the third generation, protecting the family’s legacy and finding new avenues for growth are pursued together, according to the report.

The families interviewed also noted that they generally favour measured risk over either high-stakes investment or excessive caution. Their decisions are most commonly led by the merits of an opportunity, with long-term strategic or thematic investments and a preference for stability and predictability.

Showing this trend via data, the report said that around 56% of the respondents selected long-term capital appreciation and compounding, while 21% prioritised exposure to innovation, emerging sectors and new-economy themes.

Next generation’s role

The involvement of the next generation in decision-making varies across generations. Among first-generation families, 36% said the next generation already has meaningful influence or co-leads in specific areas of the business. This share drops to 18% among second-generation families before rising to 54% in third-generation families.

These findins suggests that business families tend to retain tighter control during the second-generation transition, with greater involvement from younger members emerging by the third generation.

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Looking four to five years ahead, 46% of third-generation leaders expect to be actively running and scaling the business. By contrast, 46% of second-generation leaders anticipate moving into a strategic or board-level role.

“The next generation is not simply inheriting wealth; it is inheriting responsibility. The task is to become a custodian of the family’s values, enterprise and long-term purpose while having the freedom to build and grow an institution,” said Pallavi Joshi Bakhru, Partner and Family Office Leader, Grant Thornton Bharat.