A recent Bank of America survey found that 87% of family offices with ultra-wealthy families had not yet passed down assets to the next generation. More than a third of family offices expected heirs to change the office’s mission, with 73% of those with less involved principals anticipating this shift.

Nearly 59% of respondents planned to transfer assets to the next generation within 10 years. Heirs are more likely to make significant changes if they have not been integrated into the family office. This could lead to increased family disputes, with nearly half of offices expecting more conflicts.

Most family offices anticipate successors to increase their use of technology and AI, with larger offices more likely to use it. Respondents also expect heirs to increase allocations to alternative investments, particularly in private equity, direct investments, and real estate, which are seen as opportunities for future wealth creation.

Family offices currently have a high allocation to alternatives, excluding cryptocurrencies, with an average of 34.5%. Despite recent outflows in sustainable funds, heirs are expected to maintain or increase their sustainable or impact investments. Additionally, family offices are optimistic about the U.S. stock market, private equity, and merger and acquisition activity in the coming year.

Read more at CNBC: Family offices expect heirs will take new path on investing