Philippine wealthy families face succession planning gaps

MANILA — High-net-worth families in the Philippines place a strong emphasis on preserving wealth across generations, but many have yet to put formal succession and family governance structures in place, according to a study by UnionBank Private and Swiss wealth manager Lombard Odier.

The study, titled “The Wealth Blueprint: Building Wealth, Sustaining Legacy,” surveyed more than 390 high-net-worth individuals across Asia-Pacific, including clients of UnionBank Private and members of Lombard Odier’s strategic alliance network.

It found that 80% of Philippine respondents identified preserving family wealth across generations as their main objective when considering the transfer or receipt of family wealth.

That was the highest proportion among the APAC markets covered, compared with an average of 64.2% across the region.

Maintaining family unity and shared values was the second-most cited objective in the Philippines, at 60%, the study said.

Yet only 16.7% of Philippine respondents said they had a full succession plan, while just 10% said their families were fully aligned on wealth-related matters, according to the findings.

The figures point to a gap between families’ stated priorities and the formal mechanisms they have established to carry them out.

Such gaps may complicate decisions involving ownership, wealth transfers and differing expectations among family members, although the study does not establish that they will necessarily lead to disputes or losses.

Intergenerational concerns

The study also found relatively low confidence among Philippine respondents in the next generation’s ability to manage family wealth.

Only 14.3% said they were very confident in the Next Gen’s ability to manage family wealth, compared with 16.7% across APAC.

About half of Philippine respondents cited intergenerational challenges, differing visions for the future and resistance to change among senior family members as primary concerns, the study said.

The findings underscore the role of succession planning and family governance in helping wealthy families establish common objectives before major wealth transfers take place.

They also reflect a broader shift in wealth management, with affluent families increasingly seeking advice that extends beyond portfolio management to areas such as succession, family governance and legacy planning.

The study found a relationship between professional advice and perceived family alignment across APAC.

Among respondents who received professional advice, 87.5% said their families had some degree of alignment, compared with 57.8% among those who did not receive advice.

Similarly, 50% of respondents who did not receive advice identified the absence of a formal structure as a significant challenge in family governance, compared with 17.2% of those who received advice.

The findings describe an association rather than proof that professional advice itself caused stronger family alignment.

UnionBank’s Head of Wealth Management, Gauraw Srivastava, said the study points to a growing demand for wealth-management support beyond investments.

“The insights from this study highlight a growing need among high-net-worth families for guidance that extends beyond investment management. Through our strategic alliance with Lombard Odier, we are able to better understand our clients’ evolving priorities and support them with tailored solutions that address wealth preservation, succession planning, and legacy building.

At UnionBank Private, our ultimate goal is to help clients not only grow their wealth but to secure their family’s future and support them as they create a lasting legacy for generations to come,”

Srivastava said.

Vincent Magnenat, Limited Partner and Global Head of Strategic Alliances at Lombard Odier, said Philippine families and entrepreneurs were showing greater clarity around long-term investment and intergenerational wealth transfer, but that structured plans remained important.

“Leading families and entrepreneurs in the Philippines are demonstrating greater clarity around their priorities, particularly in relation to long-term investment planning and intergenerational wealth transfer. However, as our findings show, there remains a meaningful gap in translating these intentions into structured, actionable frameworks.

Through our Strategic Alliances, we work closely with our partners such as UnionBank Private to help HNWIs in the region bridge this gap, combining local proximity with global investment and wealth planning capabilities to support HNWIs and their families in building resilience, strengthening alignment, and navigating change across generations,”

Magnenat said.

For Philippine wealth managers, the findings suggest that the next phase of private wealth advisory may increasingly involve helping families establish decision-making frameworks before succession becomes an immediate issue.