More than half of wealthy families favour holding assets in their own names, risking disputes and estate tax: DBS

More than half of high-net-worth individuals and families prefer to hold assets in their own names, keeping firm control of their wealth. But this may expose them to disputes over asset distribution and estate tax.

According to the 2026 DBS Asian Family Office Report released by DBS Bank’s Wealth Planning and Family Office team on Friday (30 October), more than half of family offices hold core assets in individuals’ names.

Only 20% hold assets through professionally managed trusts, according to two surveys covering more than 200 family offices across Asia, Europe and the Middle East.

Lee Woon Shiu, group head of Wealth Planning, Family Office & Insurance Solutions at DBS Bank, told Lianhe Zaobao (LHZB) that the high proportion of wealthy individuals holding assets in their own names was mainly because first-generation entrepreneurs generally valued control over their wealth and wanted to decide for themselves how and when to use it.

Some families also lack an understanding of alternative asset-holding structures such as trusts and are reluctant to spend time studying such arrangements. They therefore tend to continue holding assets in their own names.

Lee said holding assets in one’s own name carried certain risks. For example, disputes between family members could complicate asset distribution.

Furthermore, if an asset owner loses mental capacity while still alive, their children cannot directly access assets held in that person’s name.

Another risk is that investments in US stocks held in an individual’s name may be subject to US estate tax of up to 40%, significantly reducing family wealth as it passes to the next generation.

As wealth gradually passes to the next generation, however, some heirs are beginning to review their families’ asset-holding structures, and are even considering setting up trusts to organise and manage family wealth.

The DBS report noted that choosing suitable structures for holding assets and transferring wealth was becoming increasingly important for families with beneficiaries spread across the world.

However, 55% of respondents were unsure whether they would introduce new asset-holding structures within the next 12 months. This reflected a gap between families’ awareness of the need for change and their willingness to act.

Lee has observed a significant increase in family offices adopting trust structures in recent years.

As many families move from the first generation to the second, heirs are more attuned to information on wealth management and succession planning. They also recognise that family wealth should not remain tied to the traditional model of holding assets in individuals’ names.

Meanwhile, founders’ desire to retain control of their wealth remains a major obstacle to succession. A third of families cited this as their main reason for delaying wealth transfers.

With regards to risk management, more than 85% of families lack comprehensive business continuity plans, relying only on informal arrangements or even being unsure whether such plans exist.

Lee noted that 37% of respondents had no business continuity plan at all.

He cautioned that families should not wait until an unexpected event occurs before scrambling to respond. Instead, they should review their risk management arrangements early to ensure they are robust and strengthen their ability to respond.

In addition, 60% of respondents named learning how to adopt artificial intelligence (AI) effectively as their top priority, but 47% of family offices have yet to use AI or digital tools in their daily operations.

The report identified a lack of in-house expertise and concerns over data security as the two main barriers to AI adoption among family offices.