Not just inheriting wealth—Gen Z is reengineering it

Today’s Gen Z successors are reshaping philanthropy as a strategic extension of the family mission

According to EY, India is getting closer to the largest intergenerational wealth transfer in its modern history — estimated at over $105 trillion by 2048. But this is no ordinary handover. A rising generation of heirs, which happens to be Gen Z, isn’t just content with passively receiving wealth —they want to shape it, govern it, and redefine its purpose.

GenZ, these young successors are stepping into boardrooms with digital fluency, global exposure, and a deep desire to align capital with conscience. They’re not just asking what they’re inheriting—they’re asking why, how, and to what end.

Across family offices, legacy businesses and philanthropic foundations, a silent revolution is underway. The era of patriarch-led succession is giving way to collaborative leadership, inclusive governance, and value-driven decision-making.

What Gen Z is bringing to the table

Unlike their predecessors, Gen Z isn’t waiting for permission—they’re already influencing how wealth is managed, grown, and given away. Their priorities are not rooted in tradition, but in transparency, relevance, and responsibility.

In practice, this means:

Strategic leadership, not symbolic titles: Gen Z expects to be entrusted with real responsibilities—from leading sustainability verticals to launching new digital ventures within the family enterprise.

Tech-literate stewardship: This generation views technology not as an add-on but as foundational. AI, data automation, and real-time reporting are baseline expectations—not upgrades.

Impact over intention: For Gen Z, philanthropy must come with measurable outcomes. Giving back is only meaningful if it aligns with long-term community or environmental goals, not just legacy preservation.

Patriarchy to participatory leadership

India’s ultra-wealthy families are moving from inheritance-based succession to an inclusion-led transition. While patriarchs or matriarchs traditionally controlled both business and personal wealth decisions, many families are now creating constitutions and governance councils that include Gen Z members from their early 20s. This is leading to:

New developments: Families are formalising multi-generational investment committees and philanthropic boards.

Soft transitions: Gen Z is starting with taking charge of ESG, CSR, or tech initiatives.

Emerging hubs: Financial service centres like the GIFT City are being used as a modern platform for cross-border structuring and leadership immersion.

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Changing governance frameworks

One of the most striking shifts accompanying this succession process is how governance structures are evolving. Families are no longer focused solely on who holds equity, but on how shared decision-making can be institutionalised.

What’s working:

- Cross-generational learning and coordinated decisions
- Values, succession logic, and accountability
- Clarity of being a shareholder, a board member, or a business leader—reducing ambiguity and future conflict
- Defined governance solutions - family councils, family assemblies, cousin’s consortium

Structuring wealth across borders

As families grow across continents—living in London, studying in Boston, investing in Dubai—succession planning is no longer domestic. It’s transnational by design.
Navigating this complexity isn’t just about managing tax friction. Today’s leading families are turning mobility into a strategic lever—building resilient, globally-aligned and compliant structures that support long-term growth and control.

Their key priorities include:

- Residency diversification and dual-tax treaty strategies that safeguard against jurisdictional risk.
- Balance between Indian and trusted offshore entities for flexibility and access.
- Sustainability-first structuring, focused on longevity, compliance, and family unity—not just optimisation.

This marks a mindset shift: from reactive planning to intentional global architecture—one that reflects where the family lives, works, and leads across generations.

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Redefining philanthropy with purpose

Gone are the days when giving back meant naming rights on a school wall. Today’s Gen Z successors are reshaping philanthropy as a strategic extension of the family mission.

Venture philanthropy and impact investing are fast becoming the tools of choice, blending financial acumen with deep social purpose. Families are adapting their giving strategies to allow for:

- Hands-on leadership by next-gen members
- Grant portfolios that act as training grounds for strategic thinking
- Community building that aligns legacy with local relevance

Wealth transition today is less about transferring money, and more about transferring mindsets. Here’s how the best-prepared families are making a transition from the old to the new playbook:

The author is MD, Wealth & Family Solutions, LGT Wealth India.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with financial advisor before taking any decisions.