Intergenerational Wealth Transfer: Passing It On, Without the Problems
We often talk about building wealth. But what happens when it’s time to pass it on?
Key Takeaways about Intergenerational Wealth Planning
- Transferring wealth effectively requires early, structured planning — not just a good Will.
- Clear communication helps reduce future family conflict and ensures your values are carried forward.
- Involving adult children in planning (at the right time) helps prepare them for the responsibilities of wealth.
- Professional advice can help navigate tax, control, and estate complexities across generations.
- The goal isn’t just to pass on money, but to protect family relationships and preserve financial legacy.
Intergenerational wealth transfer is one of the most significant financial events a family can face. It can strengthen a family’s future, or fracture it. It’s not just about money. It touches on family dynamics and values, estate structures, wealth management, and long-term tax strategy.
A well-structured transfer is about far more than writing a will. It’s about planning across generations, making sure your wealth does what you want it to do, not just legally, but practically and meaningfully.
So what exactly is Intergenerational Wealth Transfer?
Intergenerational wealth transfer is the process of passing assets, investments, or businesses from one generation to the next. Good financial advice ensures this transfer is tax-efficient, conflict-free, and aligned with your wishes.
Why Families Are Thinking About This Earlier
Australians are living longer, retiring with more, and inheriting later. It’s not unusual now for adult children to inherit significant assets in their 50s or 60s, after they’ve already built careers and families of their own.
We’re also seeing more:
Blended families — adding complexity to ‘fair’ versus ‘equal’
Private business ownership — requiring succession strategies
Superannuation balances above the transfer cap — leading to unintentional tax triggers
Generational differences in financial literacy — where the next generation may not be prepared
For many clients, the question is: how do I pass on wealth without burdening my family or creating conflict?
It Starts With Clarity , Not Just Documents
A will is essential. But estate planning isn’t just a legal exercise, it’s a strategic one. Where financial advisers play a central role.
We ask:
What do you want your wealth to do?
Who should benefit, and when?
How do we ensure control (e.g. over trusts or businesses) is passed on responsibly?
What are the tax implications for your beneficiaries?
When wealth transfer is treated as a strategy, rather than an event, the outcome is far more stable, and the risk of disputes or missteps is lower.
Structuring for Flexibility, Not Just Certainty
One of the most powerful tools in intergenerational planning is flexibility. Life changes. Families evolve. Tax laws shift. What is ‘fair’ today may not be in ten years.
Strategies we regularly use include:
Testamentary trusts — allowing income splitting and asset protection across generations.
Superannuation reversionary nominations — to provide continuity and minimise tax.
Early gifting strategies — where appropriate, to help children or grandchildren while you’re still alive.
Philanthropic structures — to express family values and reduce estate tax.
Many of these strategies, from estate structures to tax planning mechanisms, are guided by financial advisers. A financial planner understands the full picture, has an ongoing client relationship, and a thorough understanding of a clients’ goals.
Tax Planning: The Silent Factor in Wealth Transfer
Many people are surprised to learn that death does not cancel tax.
Some key issues:
Superannuation death benefits paid to non-dependants (such as adult children) may be taxed up to 17% on the taxed element and 32% on the untaxed element, depending on withholding rules set by the ATO. Details on the ATO Website
Unrealised capital gains on investment properties or shares may become real upon sale, creating tax obligations for beneficiaries.
Poor documentation or lack of clarity on cost bases can create avoidable friction.
Tax doesn’t have to be the villain. But without planning, it can become the biggest unintended beneficiary.
Your Adviser Is Your Architect
This is where financial advice goes beyond spreadsheets. While financial planners offer a wide range of Services, they are all concerned with the future of your finances. This absolutely means planning your short term financial future, but it also means planning your financial future for the next generations of your family.
In order to plan appropriately for your financial future, we take the time to:
Map out family structures and various related entities.
Understand our clients’ values, concerns, and sensitivities.
Balance clients’ financial goals with their emotional ones.
Coordinate with our clients’ lawyers and accountants.
We’re not just passing on wealth , we’re passing on peace of mind.
Start the Conversation, Before You Need To
The best time to plan a wealth transfer is not when someone’s in hospital, or after a diagnosis. It’s when things are calm. When decisions can be made carefully, with a clear head and without external pressures.
At Tupicoffs, Our Experienced Team help clients design their legacy, not just leave one behind. It’s wealth management, with future generations in mind.
If you're thinking about how to pass on wealth, or simply want to make sure your financial legacy is well-structured, we’re here to help.
