The nature of succession planning has altered exponentially in the past 20 years, as changing patterns of wealth creation and values surrounding legacy are reshaping the transfer of wealth to the next generation.
Catherine Grum, Founder of Catherine Grum Consultancy Ltd., joined us on the Guernsey Finance Podcast to speak on the difference in approach to managing wealth that she has noted in her work with today’s high-net-worth individuals. Speaking with host Brandon Ashplant, she cited the growth of technology-driven sectors as a catalyst for the rise in entrepreneurs achieving liquidity earlier in their careers, expediting their engagement with wealth management and succession planning.
A new era of private wealth
The conversation comes at a pivotal moment for the private wealth sector. Research from Cerulli Associates projects that as much as $124 trillion could be transferred between generations in the United States before 2050. The changing nature of inherited wealth holds huge implications for this figure. According to Catherine, rather than inheriting family-operated businesses, future generations are increasingly likely to receive diversified portfolios of assets.
While this provides greater choice and flexibility, it also presents new challenges. According to Catherine, families benefit from being clearer about their collective objectives and the purpose of their shared wealth, so that decisions about its future are intentional and support both the family and what they hope their wealth will make possible.
Communication emerged as a recurring theme throughout the discussion. Catherine argues that many of the challenges associated with succession planning stem not from the technical aspects of wealth transfer, but the reluctance to have difficult conversations. Whether navigating blended family structures, varying levels of financial dependence, or differences in values or ambition, she emphasises the importance of creating space for open dialogue and involving those affected by future decisions in the conversation.
"Succession and handing wealth on is usually intended to make the lives of recipients better and help them flourish in some way. It's hard to do that without involving them in a conversation about what it is they need and want."
Changing values
The podcast also explores the evolving priorities of younger wealth holders and entrepreneurs. Influenced by global events, increased transparency and changing societal expectations, many place a greater emphasis on aligning their wealth with their personal values. This extends beyond traditional philanthropy to include social impact investing, responsible business practices and broader questions about how wealth can be used to create positive change.
The discussion also considers the role of jurisdictions in supporting internationally mobile families. While traditional factors such as political stability, strong regulation and professional expertise remain important, Catherine suggests that values alignment is becoming an increasingly influential consideration. As these priorities evolve, so too do expectations of advisers.
“Having good-quality firms and having a safe, stable reputation, I think those remain important to families now. But I think it's also about the people. Understanding the relationships, the rapport, and how the service providers that the wealth creators are talking to are going to work with them as people,” she explained.
“So those firms that are open and understanding about not just structures and solutions, but the whole ecosystem of that family and how they help and work with other advisors.”
Ultimately, the podcast highlights that succession planning is no longer simply about transferring assets from one generation to the next. Instead, it is about helping families define the purpose of their wealth, foster meaningful communication and create frameworks that help individuals and families flourish across generations.
Listen to the full podcast here.
Catherine Grum is an independent consultant and strategic adviser to enterprising families and family offices on family office design, family governance and succession. She works with families to clarify what their wealth is for, navigate complex decisions and create the structures, relationships and capabilities that enable them to live well with wealth.
