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Against the backdrop of rapid economic development and profound social transformation, the issue of wealth succession for high-net-worth families has become increasingly critical. With the vigorous growth of China's private sector, numerous family businesses are entering a pivotal phase of generational transition. Wealth succession not only concerns the rise and fall of families but also exerts a profound influence on the stable development of the economy and the harmonious order of society.

On 8 January 2026, JAVY Law Firm successfully hosted the event ‘Strategies for Wealth Succession in China's High-Net-Worth Families: Tools, Case Studies and Practical Guidance’. Mr Cai Lei, Partner and Chair of the Firm's Family Succession Management Committee, served as the keynote speaker.

Commencing the event, Mr Cai Lei presented a series of detailed data revealing the pressing circumstances and numerous challenges currently facing wealth succession among China's high-net-worth families. In dissecting the core challenges of family wealth succession, Mr Cai conducted an in-depth analysis from four dimensions: ‘People,’ ‘Family,’ ‘Enterprise,’ and ‘Society.’ The ‘human’ dimension primarily manifests as gaps in planning and capability discontinuity; the ‘family’ dimension stems from complex familial relationships and trust crises; the “business” dimension reflects governance deficiencies and risk amalgamation; while the ‘society’ dimension emphasises conflicts between public attributes and legal obligations.

Addressing these challenges, Mr Tsai detailed multiple practical wealth succession tools and solutions. Family trusts, a popular choice for wealth transfer, offer core functions including asset isolation, targeted succession, and tax optimisation. Their increasingly accessible establishment thresholds now benefit more families. Insurance trusts combine insurance protection with the flexible succession advantages of trusts, ensuring family members' livelihood security while achieving asset risk isolation. A sound equity structure forms the bedrock of family business succession. Models such as family trust holding structures, A/B share arrangements, and limited partnership frameworks enable the separation of control rights from profit rights. The ‘Family Charter,’ as the core governance document, explicitly stipulates succession selection criteria, decision-making mechanisms, and dispute resolution pathways, ensuring fairness, impartiality, and transparency in family governance.

Regarding successful implementation pathways, Mr Cai emphasised the critical importance of early planning and robust safeguarding. Founders should initiate systematic planning while in good health, utilising rigorously notarised wills to clarify asset distribution and employing legal instruments such as share trusts to pre-emptively secure corporate control. Successor development requires systematic, practical long-term planning, enhancing capabilities through rotational assignments at grassroots levels and exposure to core operational roles. Within the family, models such as reasonable division of labour, a ‘dual-engine structure’, and collective succession can be adopted to achieve stable inheritance of the family enterprise while maintaining unity. Furthermore, establishing a family office or engaging professional institutions can provide comprehensive support for family succession, addressing cross-border tax issues and offering legal safeguards.

During the interactive session, solicitors engaged in multi-faceted, in-depth discussions on relevant topics. Sparks of intellectual exchange continually ignited amidst a lively yet relaxed atmosphere, with consensus emerging through collaborative dialogue.

JAVY Law Firm remains steadfast in its commitment to fostering platforms for solicitors to interact with distinguished law firms and industry luminaries. This initiative promotes individual professional development, deepens legal expertise and skills, and empowers solicitors in their career advancement.