We often hear people talk about ‘the great wealth transfer’ as something that will happen down the track. But the truth is… we’re already in it.

Since 2001, around $1.5 trillion has already been passed from one generation to the next, and by 2050 another $3 trillion will follow. But it’s not all happening the way we expected.

To keep you in the loop I caught up with MD, John Knight to discuss what’s really going on and the 5 big things to get right when passing on wealth. Watch below or, if reading’s more your thing, scroll on to learn more.

 

 

1. bank of Mum + Dad: gift or loan?

 

One of the first questions to ask is whether you’re giving money as a gift or as a loan.

If it’s a gift, document it so there’s no confusion later. If it’s a loan, even if interest-free, have an agreement in place. This protects against things like bankruptcy or family law claims and keeps everyone clear on the arrangement.

 

2. early inheritances + keeping it fair

 

Helping one child buy a house now is great… but what happens if the others don’t get the same support?

Tracking amounts, noting them in your will, and making sure they’re documented can prevent disputes later. We’ve even seen families keep spreadsheets showing exactly what each child has received.

 

3. balancing control + handover

 

Some parents are ready to start passing over control but still want a say.

That means looking at your powers of attorney and being clear on how decisions will be made. In some cases, its worth allowing certain “conflicts”, for example, letting kids use funds to pay school fees for their own children.

 

4. assets you don’t directly own

 

Super funds, trusts, and companies don’t work the same way as assets in your own name.

Who controls them? Can they be passed on through your estate? If you’ve earmarked assets in a trust for multiple children, how will that actually work? It’s worth mapping this out well before any transfers happen.

A big issue we’re seeing is large commercial properties inside self-managed super funds.

On the death of a member, benefits often have to be paid out, which can force the sale of the property unless you’ve planned ahead. Bringing the next generation in early can help avoid that.

 

5. your affairs are typically not as simple as you think

 

Estate planning is about more than wills and powers of attorney. It’s about looking at your full asset picture, deciding when and how your family will benefit, and putting the right structures in place to make that happen.

Whether you’re passing on wealth with a warm handshake or planning for the future, doing it well protects relationships and legacies alike.

 

we’re here to help

 

If you’ve got questions about the great wealth transfer or your own estate planning, get in touch with me and the team at legal@businessdepot.com.au or give us a buzz on 1300 BDEPOT.

 

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