India is entering a decisive period of intergenerational transition. As family enterprises and wealth pass between generations, custodians are reassessing how to preserve and grow capital. They are also asking how to carry family values, governance structures and long-term purpose forward.

Custodians of change draws on conversations with family business leaders and wealth custodians across India. The families represented manage wealth ranging from approximately INR 100 crore to INR 10,000 crore.

It examines how these families approach investment, risk, decision-making, succession, next-generation involvement and the evolving role of the family office.

The next generation is not simply inheriting wealth; it is inheriting responsibility. The task is to become a custodian of the family’s values, enterprise and long-term purpose while having the freedom to build and grow an institution.
Pallavi Joshi Bakhru Partner and Family Office Leader, Grant Thornton Bharat

Five shifts shaping family wealth management and stewardship

1.

Wealth preservation remains central, but priorities are expanding

Protecting family wealth, values and continuity remains the most widely shared priority, cited by 78% of the custodians interviewed. However, preservation increasingly sits alongside wider ambitions:

46%

prioritise growing or diversifying income beyond the primary business

38%

are focused on building a legacy beyond financial returns

30%

prioritise institutionalising the family office

30%

are seeking global exposure and cross-border opportunities

Among first-generation respondents, preservation is the leading concern, while fewer than 20% prioritise diversification beyond the core business. By the third generation, protecting the family’s legacy and finding new avenues for growth are pursued together.

2.

Families favour calculated, long-term growth

The families interviewed generally favour measured risk over either high-stakes investment or excessive caution. Their decisions are most commonly led by the merits of an opportunity, with long-term strategic or thematic investments and a preference for stability and predictability tied as the next most common considerations. When asked which investment outcome matters most:

56%

selected long-term capital appreciation and compounding

21%

prioritised exposure to innovation, emerging sectors and new-economy themes

9%

selected impact, sustainability or purpose-linked outcomes alongside returns

3.

How is family governance shaping decision-making?

Responsibility for major decisions is gradually being shared across family members, professional management and external advisers. The most common model identified in the report is a joint process involving both the family and professional management. However, close to 20% said their approach varies with the size and type of the decision, and almost as many — including several third-generation families — said the head of the family still makes the final call after taking inputs, suggesting that older instincts still run strong.

Approaches to family enterprise governance differ by generation:

Founders tend to favour family-led decision-making supported by external advisers

Second-generation custodians show the strongest preference for professional management with family oversight

Third-generation custodians are more likely to prefer a hybrid model that combines family involvement with a dedicated investment office

Family values also shape how strategic decisions are made. 30% of families apply their values through informal family consensus, while 27% use clearly defined governance frameworks for strategic decision-making. A further 14% primarily reflect family values in leadership and succession decisions.

4.

Succession is being approached as an ongoing process

Most families have some direction on succession, although the level of formalisation varies:

42%

have broad family alignment but no formal documentation

36%

have a clear, documented succession plan

16%

are holding ongoing discussions but lack clarity

6%

do not currently consider succession a priority

Next-generation involvement varies across generations. Among first-generation families, 36% report that the next generation has meaningful influence or co-leads decisions. This falls to 18% among second-generation families before reaching 54% among third-generation families.

Looking four to five years ahead, 46% of third-generation leaders expect to be actively running and scaling the business. By contrast, 46% of second-generation leaders anticipate moving into a strategic or board-level role.

5.

The family office is becoming an institution of governance

Family offices are often established in response to increasing complexity. The most common trigger, cited by 24% of families, is a shift from the operating business towards diversified financial investments. Major liquidity events and investments spanning multiple asset classes, entities or jurisdictions are each cited by 21%.

For families, the meaningful impact of a family office is largely operational and practical. Professionalising investment management, talent and processes ranks first, closely followed by portfolio diversification across geographies and asset classes. Integrating succession planning into long-term capital allocation and strengthening governance and decision-making frameworks are also seen as critical. Purpose-led and impact-oriented priorities matter to some families but remain further down the list.

When considering what they would design differently, families most frequently identify:

Four approaches to wealth custodianship

The report identifies four family archetypes based on governance, next-generation involvement and long-term priorities:
30%
The Legacy Custodians

Focused on protecting continuity, relationships and shared values

30%
The Institutional Leaders

Combining family leadership with professional discipline and established governance

24%
The Governance Architects

Building decision-making and wealth-management structures before successors take the lead

16%
The Enterprise Stewards

Giving the next generation an active leadership role while formal structures continue to develop

About the report

This joint thought leadership report by Grant Thornton Bharat and Entrust Family Office explores how family business leaders and wealth custodians across India are approaching intergenerational transition. It captures perspectives from families with wealth ranging from approximately INR 100 crore to INR 10,000 crore and examines their evolving approaches to investment, governance, succession, risk, purpose and the long-term stewardship of family wealth and enterprise.

Custodians of change
Read the report

Custodians of change

Next generation of Indian wealth

FAQs

Families are moving beyond a narrow focus on wealth preservation towards a broader stewardship agenda that combines wealth preservation and growth, diversification, purpose and long-term family enterprise continuity. Priorities can differ across generations, particularly in relation to risk appetite, liquidity expectations and philanthropic priorities. The next generation may also bring new perspectives on investments, technology, global opportunities and how family wealth should create value over time.

Families can achieve this balance by safeguarding core assets while strategically allocating capital to new businesses, investments and other opportunities that support long-term growth. A clearly defined risk framework, robust liquidity planning and disciplined decision-making can help families pursue growth while maintaining financial resilience.

As family wealth, businesses and relationships become more complex, informal decision-making can create ambiguity. A strong family governance framework clarifies roles, accountability, ownership and decision rights. In practice, this may include a family charter, a family council or family assemblies, supported by agreed processes for collective decision-making and dispute resolution. 

The next generation can play a meaningful role well before a formal leadership transition. Involving them in investment discussions, business strategy, governance forums and selected responsibilities builds context and judgement. Structured participation makes shared decision-making more effective and helps prepare each member to become a wealth custodian.

Successful transitions are built over time. Families should establish clear succession principles, identify the capabilities required for future roles and give next-generation members progressively greater exposure and responsibility. Family business succession planning works best when treated as an ongoing process rather than an event triggered by a change in leadership. Families should also distinguish ownership succession from management succession and define clear criteria for future leadership roles, based on readiness and capability rather than family status alone.

There is no single wealth threshold or trigger. A family office becomes increasingly relevant when family wealth spans multiple businesses, investments, jurisdictions or generations, or when cross-border assets and succession planning requirements add complexity. It can provide greater coordination, visibility and governance across these areas. The key consideration is whether the scale and complexity of the family’s affairs warrant a dedicated operating model.

There is no one-size-fits-all model. The right structure depends on the family’s objectives, ownership model, business complexity and stage of transition. Many families benefit from a combination of family oversight, professional management and specialist expertise, supported by a clear family charter and defined forums.

A family’s legacy is strongest when its underlying values remain relevant, not when every historic practice remains unchanged. Families can preserve what matters, including their values, purpose and entrepreneurial principles, while remaining open to new technologies, business models and investment opportunities. This balance is central to long-term family legacy planning.

Family offices can bring together governance, succession, investment oversight, wealth structuring and next-generation development within a unified framework. This can make intergenerational wealth transfer more deliberate, transparent and aligned with the family’s long-term objectives.

Long-term stewardship means taking responsible ownership of both wealth and enterprise while balancing the interests of current and future generations. It combines disciplined capital allocation with strong governance, leadership development, shared values and preparation for future change. Ultimately, it is about building the structures and capabilities that enable a family to remain a responsible custodian of its wealth and steward of its enterprise.

Learn how we can support your family's legacy and growth