One out of five amongst India's wealthy to give away riches in their lifetime

Outstrips US, UK in belief, in faster wealth creation, giving it away in their lifetime

Twenty percent of wealthy Indians are looking to give their money away during their lifetime-four times the corresponding figure in the United Kingdom and five times the number in the United States. 
 

One out of five high networth individuals(HNWIs) with at least a million dollars to invest plan to give away their entire wealth, either to charity or their own family and friends, according to a study by global financial services provider Barclays.
 

“Many HNWIs around the world now prefer to give their money to family and friends and charitable causes in their life time rather than as inheritance,” said a note from the firm. 
 

 

Globally, 36.7 per cent of the rich are looking to do so, according to the report. The figure for the UK is five per cent, while for the US it is four.
 

The report entitled ‘Origins and Legacy: The Changing Order of Wealth Creation’ is based on a global survey of more than 2,000 such individuals. There were 100 Indian respondents. 
 

Satya Narayan Bansal, Chief Executive, Barclays – Wealth and Investment Management, India suggested that more people in the country are looking to plan wealth transfers in their lifetime rather than after. 
 

“There was earlier a thought that such a transfer would result in giving up control, which is a fallacy. People now believe that this will allow them to continue retaining control while not leaving such issues to chance,” he said. 
 

The report also noted that 84 per cent believe that wealth creation today is faster than in the past.  India was second of all the countries surveyed, after Monaco (85%) in contrast to respondents in the UK and US at 44% and 31% respectively.
 

Also, 52 per cent of Indian respondents said that their wealth has increased following the global economic downturn. 

Indians have a tendency to allocate more of their resources to saving and investments than to tangible items  or personal property according to the report. 
 

“On average, respondents are more likely to hold their wealth largely in cash savings (28% of wealth), followed by investments (27%). By contrast, just 14% of wealth is held in tangible assets and 16% in personal property,” said a note on the report.