From crypto to charity: how do the next generation view wealth and family legacies?

Succession planning has always raised a mixture of practical and ethical questions, with family relationships and history adding an emotional dimension to decisions. Withers has supported families through this process for 130 years, but lately an additional cultural shift has come into play. As the great wealth transfer sees baby boomers preparing to pass huge volumes of assets to their children, families are increasingly asking: what does the next generation want? 

'I think we are looking at a different culture,' says Ceri Vokes, private client and tax partner and CEO-elect of Withers. 'In recent decades there’s been an explosion of wealth created by people who have built successful businesses, but their millennial children aren’t necessarily interested in accumulating more. What motivates them is to prove their own identity, using wealth as a platform to shape the world around them.'

While this is rarely discussed, it’s common for family members to grapple with the idea of inheritance and legacy. 'Some people feel they have to live up to the prior generation. Others feel quite guilty about having that privilege when there are so many problems in the world,' explains Ceri. 'A lot of what we do is to put structures in place to manage that transition and encourage early conversations with the next generation about what it is they want.'

Translating values and intentions into a clear idea of legacy can be really tricky for families. When the current generation of family leaders is asked a broad question such as, 'what is your family legacy?', it can feel overwhelming. Under pressure to give a definitive answer, some default to sweeping statements like 'the family business must never ever be sold', even when these do not fully reflect their true priorities or what future generations may want or need.   

'It is not uncommon to encounter older family trusts filled with sweeping declarations and rigid restrictions. This often raises the question of whether the wrong questions were asked at the outset,' says Stacy Choong, a private client partner in Withers’ Singapore office. 'Asking the right questions means engaging both the present and next generation, so families pass on principles rather than prescriptions, offering a shared compass while leaving room to evolve.'

Because differing views are inevitable, particularly in families whose wealth stems from industries such as mining or plantations, founders may feel their legacy is being challenged, while the next generation views its questioning as a moral responsibility. In these moments, a trusted family advisor can play a vital role in helping the family navigate sensitive conversations with respect, care, and constructive dialogue.

Those conversations become particularly important as families confront different attitudes to risk and value. Parents can be sceptical of the next generation's commercial ideas, which are often more focused on digital assets and new business models. Some are drawn to investing in startups and emerging AI technology, while others are interested in new asset classes such as NFTs and cryptocurrency. 

Real estate is another asset class that has potential to be divisive. While property has often been both personally and financially significant for the older generation, younger people do not seem to prize it in the same way. 'One challenging shift here in LA is that a lot of families literally built their fortunes in real estate, but the next generation see owning buildings as a headache and would rather have an investable portfolio with greater cashflow,' says Elizabeth Bawden, a Los Angeles-based partner in the trust, estate and charities team.

This creates a tension when parents are keen to preserve what they see as their legacy – and one that can cause issues later if left unresolved. Even when families do want to preserve real estate holdings, it is not uncommon for a grieving family to be forced to sell a building, either because they cannot agree on whether to keep it, or because they cannot afford the tax bill. To prevent this from happening, families need to discuss their wishes as early as possible and look for solutions, which might range from placing assets in trust to taking on life insurance to cover estate taxes.

Attitudes to tax are also worth discussing, especially for internationally mobile families with different regimes to consider. On occasion, the firm has been asked to unwind or restructure offshore arrangements where a beneficiary objects on ethical or practical grounds. 'The older generation do tend to be more motivated to ensure structures are tax optimized,' notes Ceri. 'That may reflect a cultural shift, but it is also about stage of life. If you are raising a family, relocating for tax reasons is unlikely to be attractive. If you are older and have homes around the world, there is more flexibility.'

Some clients express private concern that their children cannot be trusted with the kinds of sums being bequeathed. The key here is to introduce key concepts around budgeting, spending, investing and impact early, says Elizabeth. 'Unfortunately, where someone in the next generation is not really prepared to receive wealth, it’s easy for them to be taken advantage of by people who may or may not have their best interest at heart in what they recommend.'

One inspiring example was a mother whose adult children had shown little interest in their family trusts. “My client told me, ‘I would not feel good about having left this earth unless I had prepared my kids’,” Elizabeth recalls. 'She had her children start joining regular calls with her advisory team (including accountants, legal and financial advisors) so that they could see how she asked questions and thought things through with her team. Her goal was for them to learn how to select and interact with advisors in order to make good decisions about wealth. While her children are engaged differently than she is, her example is a real success story in terms of developing their skillset.'

Where the next generation feels empowered, they can begin to make their own mark, particularly through philanthropy. 'The families that manage this best tend to allow a degree of autonomy,' says Ceri. "They might allocate responsibility over a portion of the wealth and say, ‘This is for you to decide – what should we be doing as a family?’” Not only does this help to drive positive outcomes for the chosen cause or charity, it is often the first time younger family members feel a genuine sense of ownership.

At the other extreme, some leaders feel paralysed by the weight of succession decisions and end up making none at all. Stepping aside becomes a default rather than a strategy, leaving the next generation to manage increasing complexity without preparation or shared direction. As wealth moves further from its origins and families grow larger and more complex, the risk of conflict inevitably rises. 

'Paralysis often sets in when family leaders feel they are deciding alone, carrying the fear that a wrong step could affect future generations,' says Stacy. 'That fear is heightened when they feel they are venturing into unfamiliar territory, where their past business experience offers little guidance.  Thoughtful, age‑appropriate engagement with the next generation can ease this burden. It is not about stepping away from decisions, but about creating space to listen, test assumptions, and build shared understanding early. Families that do this often find clarity and confidence emerging naturally, rather than only under pressure.'

With early and open discussion, it is even possible for families to maintain shared assets and a sense of continuity across generations. 'One family that we work with owns a ranch that was placed in trust years ago when values were low, so there’s no estate tax burden,' says Elizabeth. 'The family has done what we would always recommend: involving the next generation and explaining why this is not an asset that is going to be sold. Through the structures set up, there would be cashflow available if someone decided to sell one-sixteenth of it, but there’s no expectation that’s going to happen.'

While there are clear differences between the generations, that sort of harmony is surely something to which every family can aspire.