Invest
Why you might get your inheritance sooner
There is a major change in estate planning occurring in Australia, with next of kin receiving inheritance based on “purpose, opportunities and security” from older relatives who aren’t waiting until they pass away to transfer the money across, a wealth manager has advised.
Why you might get your inheritance sooner
There is a major change in estate planning occurring in Australia, with next of kin receiving inheritance based on “purpose, opportunities and security” from older relatives who aren’t waiting until they pass away to transfer the money across, a wealth manager has advised.
Kirsten Lynn, a private wealth adviser at Stanford Brown, has reflected on the changes to intergenerational wealth transfer which is now seeing individuals helped when they need it most.
“People are thinking more about the transfer of wealth during their lifetime and increasingly thinking about the benefit, needs and timing for individuals,” Ms Lynn said.
What is causing this change?
A broader demographic change and an ageing population have been highlighted as some of the reasons why individuals are passing on wealth.
“If your parents are living into their 90s, that means you’re probably not inheriting until you’re in your 60s,” Ms Lynn said.
In your 60s, you’re probably passed some of the major times where you want to inherit, or the major costs of raising children and paying down mortgages, she continued.
Another major change is family unit structures, with couples separating and remarrying, forming a new family unit.
“This means there is a broader group that needs to be factored in,” Ms Lynn said.
Finally, the sheer wealth that is going to be transferred over the next two decades is a major reason for intergenerational inheritance changes.
“Some of the research is suggesting it is $3.5 trillion, and broadly, baby boomers make up 25 per cent of the population but make up 50 per cent of the wealth,” the wealth adviser continued.
Holistic approach
Instead of focusing on passing wealth on in a traditional mirror will, the wealth managers are seeing a growing trend where inheritance is based on needs.
The wealth manager outlined that people passing on their wealth need to consider whether to pass on the wealth to the children or grandchildren, should they pass it on through paying for education, should they support a charity and how much the family does actually need.
Now, people are thinking more about the relationships involved and making sure to protect individuals’ feelings before passing on wealth.
“There’s more thought being given about the preservation of relationships and what they want and coming up with a plan more effective for everyone,” Ms Lynn said.
The wealth manager also highlighted how wills are being created with families involved in the conversation due to the threats of court challenges.
nestegg recently considered the importance of family members being made aware of the contents of an individual’s will.
RELATED ARTICLES
About the author
About the author
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
