PARENTS expect to pass on an average of HK$11 million to their future generations but most children expect only HK$3 million, a survey revealed.
And fewer than one in 10 parents choose not to pass on their fortunes, intending instead to donate their wealth to charity, according to the Citibank survey. The poll also revealed that more than 70 percent of grandparents plan to transfer their wealth not only to their children, but also to their grandchildren, in the ratio of 6:4.
More than half (53 percent) of grandparents agreed that family members with offspring deserve more wealth from legacy planning.
The online survey interviewed about 500 parents who hold HK$1 million or more in liquid assets. About the same number of children were polled.
More parents are passing on their fortunes to their next generation as housing costs are getting higher in the city, said City University of Hong Kong lecturer Sung Lap-kung (宋立功). “This phenomenon is very uncommon for the baby-boomers born in the 1940s to 1950s,” Sung said, adding that people from the older generation tend to accumulate wealth by themselves instead of expecting to receive it from their parents.
He also pointed out that some parents who do not pass on their wealth might use the money instead for the government’s proposed life annuity scheme, which can generate interest income for themselves.
(This article is published on Student Standard on 01 February 2018)
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