Money is root cause of disputes

Wealth and money have caused conflict in more than half of affluent families in Hong Kong. That is the conclusion of a report released by British investment bank Barclays.

Inheritance and succession are major factors in causing problems resulting in family disputes. The report reveals that 40 per cent of the world's wealthy have had disputes with their families.

Hong Kong respondents who have higher levels of wealth, especially those with more than HK$100 million or those who have inherited their wealth, are more likely to have experienced such conflict. However, those with higher incomes are less likely to clash with their families.

About 55 per cent of people earning a salary of less than HK$1.2 million say they have experienced arguments and conflict due to family wealth, compared with only 27 per cent of those earning more than HK$6 million.

About 70 per cent of Hong Kong's high-net-worth individuals (HNWIs) value the importance of seeking professional advice when it comes to inheritance planning. But despite this view, more than half say they do not have a will or testament in place. Globally, 60 per cent of respondents say it is important to get professional advice when deciding on an inheritance plan for their children and stepchildren. Seven out of 10 respondents in Hong Kong agree with this sentiment and expressed the need for expert advice to guide them through the decision-making process.

The 'Transfer of Trust: Wealth and Succession in a Changing World' report is based on a global survey of more than 2,000 HNWIs. It provides an in-depth analysis into wealthy individuals' attitudes towards wealth transfer and succession planning, while offering insights into what the future holds for the next generation. It also looks at how wealth can be the cause of many problems, leading to distrust and conflict.