It is estimated that over the next 25 years in Australia, that $3.5 trillion in assets will be passed on to the subsequent generations, both from our parents and onto our kids. These numbers are extraordinary to consider when compared to the baby boomer wealth transfers that we have spoken about over the last 20 years. Families must have successful wealth transfer planning so that there is no “leakage” due to unintended consequences which can include mainly from the tax man and away from family bloodlines through divorce.
Having a focus on future generations through Intergenerational Wealth Planning can be complex however we have covered some tips below to help.
Have open communications with family
Succession planning discussions affects everyone, so we find the sooner these open discussions are held, the more success we find in execution. Higher net worth families with young kids always prefer to push out, however there will always become a time where trust is needed to openly talk about the future. Having a Financial Adviser that can help focus on the Wealth transfer plans and has the skills to bring in all the family’s professional advisers to the table will mean a far greater chance of success. We all know the landscape changes so having regular family catch ups that discuss the changing world means that agreed strategies and plans are being executed in a timely manner.
Prepare the next-in-line generation
This starts from a young age with the family’s values and beliefs being installed from before the next generation can remember. This is not always the case as successors may not come from the immediate family, but in general they have grown up understanding what makes the family wealth and business tick. What we have found over time is that the sooner possible heirs can be exposed to money and rules that surround great management, the better they can adapt and become better stewards of the family success. At Boutique Advisers we have successfully run financial literacy sessions for the children of our clients – the most enjoyable is generally around different types of investing which is what we love.
Having a team of trusted advisers
Having a qualified Financial Adviser that is accredited in the family business space or is actively working with family clients is a must. The success of any transitions and planning is having smart people on your side that can help you make Confident Life Decisions about your future. We find that clients value having clarity over their position across all facets of their life rather than having wealth, accounting, legal and estate being managed solo. Having the very best of professionals all collaborating and working together gives our clients the very best chance of success.
Wealth and Financial Planning advice is just one part of the puzzle. However, at Boutique Advisers Private Wealth, our Financial Advice team are skilled to help you with your current professional advisers so they are all aligned in getting the best outcome for your family. Book a complimentary meeting with a Boutique Private Wealth Adviser today.