Let’s take a look at a New York Times article on inheritance planning in Asia, and more specifically in China. According to the article, many of the “modern first generation of wealthy Asians” are interested in estate planning for their children.

William Lexmond, a managing director with UBS in Singapore, said that because family values were stronger in Asia, high-net-worth individuals between 30 and 40 years old — those with at least $1 million in investable assets — were more likely to do estate planning than their Western counterparts ‘because they feel they have the obligation to do so.’

Why is this obligation felt so strongly? Below is the Chinese character for family, which can also mean home. The character itself, etymologically, represents a pig under a roof, symbolizing the importance of avoiding scarcity as the most important function of family. The very center of Chinese life is family, and each person within a family has a specific role, of which the objective is to maintain their well-being. In most cases, there is a great sense of mutual dependence across members of a family. So, the idea of inheritance and estate planning is amenable to the Chinese ethos.

The Chinese Character for family or jiā.

‘Rather than to rely on someone else, i.e., the state, to take care of your family, there is more of a desire to make sure something is set aside,’ [Lexmond] said. ‘It’s more of a self-help type situation to provide some support.’

Lexmond underscores the centrality of maintaining stability for the family, even after one passes away. The article also mentions the relative sophistication of inheritance planning in Asia because of the stronger demand for the service. What is your take on the role of the family in China and the measures taken after a member passes away? It would be interesting to know if the Asian finance industry in general would benefit from an awareness of these aspects of culture, from which more attractive products could be created and marketed.

Sean

RW3 CultureWizard