India's fast growing population of high net worth individuals (HNI) feels that the inherited wealth is a burden. In a survey done by Barclays Wealth, nearly 50 per cent of the HNI families in India said inheritance is a burden, far more than the global average of 29 per cent.
"India has more of first generation high net worth individuals than the one who have inherited wealth. They are confident and have great respect for self-wealth creation which is perhaps a reason why they feel that inherited wealth is a burden," said Satya Narayan Bansal, chief executive officer, Barclays Wealth India.
The percentage of HNIs considering inheritance in India a burden is higher than the percentage of HNIs thinking on the same lines in developed nations like the UK and the US. The percentage of HNIs who feel inherited wealth is a burden stood at 35 per cent and and 21 per cent for the UK and the US respectively.
While nearly half of the Indian high net worth families interviewed felt that inherited wealth is a burden, 82 per cent of Indian HNIs feel that their successors will protect the wealth passed on to them, as against 20 per cent of global average. "Although there is a contradiction, in India there is a sense of respect for parents, values and legacy," Bansal explained.
The survey of 2,000 HNIs around the globe revealed that the wealthy are increasingly feeling the need for succession planning. Middle East was on the forefronts and 75 per cent respondents there felt that successive planning is crucial. The report also shows that family quarrels increase with increasing wealth. Of the total HNIs in India interviewed, 61 per cent say they have experienced family disputes arising out of inheritance related issues.
"Family disputes over wealth, rising HNIs in India and the challenges faced in the process of wealth preservation are making professional advise on wealth management more important," Bansal said.