【After-Work Economics】Is Wealth Succession Harder Than Earning Money? 810,000 High-Net-Worth Individuals Fear This Most! Experts Warn: Lack of Planning Could Turn Children Against Each Other

According to statistics from financial institutions and wealth reports, the number of individuals in Taiwan with assets exceeding NT$30 million has surpassed 810,000. However, for many entrepreneurs and high-net-worth families, the primary concern is no longer how to earn more money, but how to smoothly pass wealth to the next generation.

Chen Yi-ming, a partner at Wanguo Law Firm, shared a real-life case: a successful entrepreneur who developed dementia without prior arrangements for assets and equity, leading to severe family disputes and even affecting corporate control. Experts emphasize that succession planning goes beyond asset distribution—it includes equity allocation, healthcare, guardianship, and family governance. The earlier the planning begins, the lower the risks.

Many parents wish to leave assets to the child they trust most or who is best suited to take over the business. However, legal provisions such as the 'forced heirship share' (statutory reserve) protect other heirs. Even with a will specifying certain beneficiaries, other legal heirs may still claim their rights.

Experts recommend proactive planning through annual gifting, trusts, and wills. Trusts, in particular, have become increasingly popular among affluent families. They allow assets to be distributed according to the settlor’s wishes, reducing future disputes and litigation risks.

Zhang Xiao-qian, Deputy General Manager of Personal Financial Services at Far Eastern International Bank, noted that while AI industries and the Taiwan stock market have driven rapid wealth accumulation, the concerns of high-net-worth clients have shifted. Previously focused on wealth creation, they are now more anxious about smooth succession.

According to the 2025 Walders Taiwan Succession Planning Guide, 87% of Taiwanese enterprises face second-generation succession challenges, yet over half lack comprehensive plans. Many business owners hold not only company shares but also land, real estate, and overseas assets. In the event of an unexpected incident, this could lead to disputes over management control and significant tax liabilities.

Family offices are often misunderstood as mere wealth management services for affluent clients. In reality, their core functions include asset inventory, succession planning, tax integration, and establishing family governance mechanisms.

Far Eastern International Bank shared a case where a 70-year-old entrepreneur discovered, during asset evaluation, that land acquired 40 years ago for NT$1 billion had appreciated to NT$3 billion. Without prior planning, this could result in a massive inheritance tax burden. Through equity planning, trusts, and phased gifting, risks can be reduced while ensuring both smooth succession and family harmony.

Experts stress that the most important aspect of succession is not the tools used, but starting early. When business owners gain a clear view of their total assets and establish family consensus, supported by professional teams, wealth can truly be transformed into intergenerational value.

For more insights, tune into the latest episode of 'After-Work Economics,' which comprehensively explores the succession issues most important to high-net-worth families.