If you’re a client of bdhSterling, you’ll probably be aware that much of our financial advice process relates to what happens to your assets when you pass on.
Legacy planning and helping you ensure that your wealth passes tax-efficiently to your chosen beneficiaries is a key part of our role as your financial planners.
However, one often overlooked issue around legacy planning relates to a non-tangible asset – expert advice – that you have benefitted from during your financial planning journey. It can be hugely beneficial to your family if you take steps to ensure they receive the same expertise.
Indeed, as a professional advice firm, we are always keen to work with the next generation when it comes to advising our clients.
Massive wealth is being passed between generations
One good reason to ensure your children get the same advice as you relates to the value of assets future generations will be inheriting.
Back in 2023, Finder reported that AUD $1.4 trillion was inherited in the last 20 years in Australia. There’s no sign of that rate reducing, as the same report confirmed that baby boomers (the generation born between 1946 and 1965) are expected to pass on an estimated AUD $224 billion by 2050.
If you are a boomer yourself, you may already be aware of the value of your assets.
A standard definition of “intergenerational planning” will reference taking steps to ensure a smooth transfer of your wealth down the generations in line with your wishes. In addition to that, we believe that another key part of your legacy is ensuring your children benefit from the same level of expert advice that you have.
Here are four good reasons for maintaining a lengthy family relationship with bdhSterling and allowing us to be a long-term steward of your family’s wealth for future generations.
1. We will have a good understanding of your family structure
You will get valuable peace of mind from knowing that other family members will continue to benefit from the advice you have received, even when you are no longer there to provide for them.
Having worked with you, we’ll have built up a detailed understanding of your family, and we can work to ensure a seamless transition of assets between generations.
It’s likely that we will have accrued valuable insight into your intergenerational relationships and can ensure these are reflected in the continued advice we will provide.
2. We will be aware of the wealth you have accrued
Unlike a new advice company coming in cold, we will have a clear idea of how your assets have been built up and managed over the years, as well as your underlying investment philosophy and attitude to money.
This will give us a good insight into how to best manage the assets that make up your financial legacy to maximise future wealth creation.
Furthermore, your assets could include complicated financial structures such as trusts, as well as property, and maybe a family business. We’ll be able to provide valuable insight and advice to your beneficiaries relating to these assets.
The inheritance of wealth can often be complicated, so it can really help the process if the same adviser is working with both generations.
It may take time for a different adviser to fully understand and appreciate the scope of your assets, during which time mistakes may well be made and opportunities missed.
3. Advice can start while you are still alive
Of course, there’s no reason why you can’t ensure your children start to benefit from expert advice from a relatively young age. Indeed, experience suggests that it is beneficial to get advice from the start of your financial journey rather than halfway through it.
Simple suggestions around savings and investments, for example, can stand your children in good stead and help as they start to grow their wealth. We will be able to demonstrate the value of advice to them in the same way that, hopefully, we have done for you.
Clearly, if we are advising different generations we will ensure that we respect financial confidentiality between family members as instructed.
4. Seamless advice can help avoid family disputes
In our experience, many families find it difficult to talk about money, and that difficulty can be accentuated if the conversations relate to what happens after a death.
If we have a working relationship with different generations of your family, we can take steps to help smooth communication around your legacy with different family members.
Open and honest communication can help reduce the likelihood of family conflict when it comes to managing your wealth and assets.
Get in touch
As you’ve read, expert advice when it comes to your legacy planning is important. If you want to discuss any of the issues you’ve read about in this article, please get in touch with us.
Please note
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article is for information only, it does not take into account your personal objectives, financial situation, or needs.
Please do not solely rely on anything you have read in this article and ensure that you conduct your own research to ensure any actions you may take are suitable for your circumstances.
All contents are based on our understanding of ATO legislation, which is subject to change.