Succession plan lacking in Indian business families: Entrust

A fewer than 50% of Indian business-owning families have a formally documented succession plan in place, according to insights from Entrust Family Office, a multi-family office advising several of India’s leading business families.

“Most families recognise the importance of succession planning, and many are now beginning to translate that intent into formal structures,” said Rajmohan Krishnan, Principal Founder and Managing Director, Entrust Family Office.

“The real challenge lies in starting these conversations early and giving families and heirs the right structure. As India’s wealth transitions across generations, long-term success will be shaped not just by how wealth is created but by how thoughtfully it is governed and transferred,” he said.

Despite rapid wealth creation over the past decade, succession and estate planning have not kept pace, the firm said adding delays were driven by emotional reluctance to relinquish control, uncertainty around the next generation’s readiness, and lack of clarity on leadership choices.

“In the absence of structured planning, families face risks such as ownership fragmentation, governance disputes, and erosion of enterprise value, with profitable businesses sometimes diluted or sold due to unresolved internal transitions,” it said.

Emphasising that Indian business families were undergoing a structural shift, increasingly separating ownership from management, he said they were choosing to remain long-term custodians of capital while professional management teams run day-to-day operations.

“The next generation, meanwhile, is focused on diversification, transformation, and building new ventures alongside legacy businesses, with nearly 80–90% seeking exposure beyond the core enterprise,” the firm said.

“Once families adopt structured investment frameworks, diversification becomes central to long-term wealth preservation, with alternative assets playing a critical role. Gold continues to hold significance as a legacy asset, valued for continuity across generations rather than short-term liquidity,” it added.