Posted on: 6th June 2025

Legacy Planning for High-Net-Worth Individuals

When you’ve worked hard to build significant wealth, the next step is thinking about the legacy you’ll leave behind.

For high-net-worth individuals (HNWIs) across Asia, legacy planning isn’t just about money—it’s about protecting family values, ensuring smooth transitions, and maintaining long-term impact.

In this article, we’ll walk you through the essentials of legacy planning tailored for HNWIs in Asia, highlighting the tools and strategies that can help secure your future—and your family’s.

1. Start with a Solid Estate Plan

A well-structured estate plan forms the foundation of your legacy. At its simplest, this means having a will in place to outline how your assets will be distributed. But for many HNWIs, that’s just the beginning.

Trusts are another vital tool. A revocable trust gives you flexibility to make changes while you're alive. An irrevocable trust, on the other hand, removes assets from your taxable estate, which can offer both privacy and tax advantages.

And don’t forget about appointing someone you trust as your power of attorney or creating a healthcare directive. These ensure that, should anything happen to you, your affairs—financial and medical—are in safe hands.

2. Be Smart About Tax-Efficient Transfers

Legacy planning isn’t just about who gets what. It’s also about how and when you transfer your wealth to minimise tax liabilities.

One common strategy is lifetime gifting—giving assets to loved ones during your lifetime to reduce the size of your estate. Many jurisdictions offer annual gift exemptions, which allow you to pass on wealth gradually, without triggering tax.

Charitable giving is another powerful tool. Donating to causes you care about can not only make a positive impact but also offer significant tax benefits. Some HNWIs even set up charitable trusts or private foundations to manage their giving more strategically.

If you hold assets across multiple countries (as many in Asia do), it’s essential to get advice on cross-border tax rules to avoid unexpected surprises.

3. Use Insurance to Protect and Provide

Life insurance often plays a bigger role in legacy planning than people realise. In Asia—particularly in Greater China—life insurance is a popular method for wealth preservation and transfer.

It provides liquidity to help pay estate taxes or to give immediate financial support to your heirs.

For more control and privacy, many HNWIs use Irrevocable Life Insurance Trusts (ILITs). These trusts own your life insurance policy, keeping it out of your taxable estate and ensuring that the proceeds are distributed according to your wishes.

4. Plan Ahead for Family Business Succession

If you own a family business, having a clear succession plan is absolutely essential. Without one, your business could face disruptions—or even fail—after your departure.

Yet, studies show that less than half of Asian HNWIs have a succession strategy in place. This is a major risk.

Start by deciding who will take over and how the transition will happen. Will ownership pass to children, professional managers, or a combination of both?

Implementing family governance frameworks—such as family councils, regular meetings, and shared values—can also help keep everyone aligned and avoid disputes.

5. Consider Alternative Investments in Your Legacy

HNWIs often have portfolios that go beyond cash and property . Assets like private equity, art collections, or vintage cars can all form part of your legacy.

While these assets offer great diversification, they also come with challenges. Many are illiquid, making them harder to value or divide. Planning ahead is key to avoid conflict or forced sales later on.

You might need to work with a specialist to make sure these investments are correctly structured for long-term transfer.

6. Don’t Forget Digital Assets

In today’s world, legacy planning must include your digital footprint—think online banking, cryptocurrency, social media accounts, and digital vaults.

Make a list of your digital assets and passwords. Decide who will manage these after you’re gone and leave clear instructions. This helps prevent losses and avoids legal headaches for your family later.

7. Keep the Conversation (and the Plan) Updated

Your legacy plan shouldn’t sit in a drawer collecting dust. Life changes—marriages, births, new business ventures, changes in law—all require updates to your plan.

Just as important is communicating your wishes to your family. A staggering number of legacy plans fail because heirs are caught off guard or misunderstand your intentions.

Have regular family meetings or at least one honest conversation. It can make all the difference.

Final Thoughts

Legacy planning may feel overwhelming, but it’s really about peace of mind—for you and your loved ones. By creating a thoughtful, well-structured plan, you ensure that your values, not just your assets, are passed on.

Whether it’s protecting your family business, supporting charitable causes, or navigating complex tax rules, working with experienced advisors can help you design a legacy plan that reflects your life’s work—and sets your family up for long-term success.