(Bloomberg) — The following era of the ultra-rich say they’re prepared for succession. 

The executives chargeable for managing households’ fortunes aren’t so positive. 

About 85% of younger heirs within the US report feeling both very ready or considerably ready for succession, in line with a examine launched Tuesday by Campden Wealth and BNY Mellon Wealth Administration, which surveyed 102 respondents set to inherit an estimated $19 billion from their households. It’s a high slice of generational wealth transfers within the US, which Cerulli estimates will whole virtually $73 trillion via 2045.

Nevertheless, there’s a disconnect between that confidence and the view of leaders at household workplaces, which oversee the investments, taxes, and authorized affairs of rich clans. Solely 39% of North American household workplace executives imagine the subsequent era is sufficiently ready for succession, Campden Wealth present in a survey earlier this yr with the Royal Financial institution of Canada.

Succession planning has been a scorching matter for years on this planet of household workplaces, which have grow to be a extra distinguished fixture in monetary markets because the ultra-rich search for methods to have extra direct management over their very own wealth. Specifically, research have been combined about whether or not youthful heirs will dramatically shift investing technique or preserve allocations largely the identical.

“The following era of wealth holders perceive and embrace the gravity of this important accountability for a long-lasting household legacy,” Rebecca Gooch, senior director of analysis at Campden Wealth, mentioned within the assertion. “They need to reside as much as their households’ expectations and make a optimistic affect on the world, however face challenges with a profitable transition primarily based on difficult household dynamics, understanding their function post-succession and the absence of a formally written succession plan.”

About half of these surveyed mentioned difficult household dynamics are probably the most problematic side of succession planning. A 3rd of respondents have formally written succession plans in place, whereas others are nonetheless creating them, counting on casual agreements or don’t have any roadmap in any respect, the report mentioned. 

Many of the survey respondents had been millennials and Era Xers. After they inherit their wealth, simply over half of them plan to work for his or her household workplace, whereas a 3rd intend to hitch their household’s enterprise, the survey discovered.

–With help from Benjamin Stupples.

To contact the writer of this story:

Amanda Albright in New York at [email protected]