You’ve worked hard for decades to build your wealth. You’ve invested your time, energy and money into creating financial stability and a future of freedom. Now, as you look ahead, there’s a valuable opportunity to extend that legacy and help prepare the next generation.
Family is often the driving force behind the goals we set and the sacrifices we make. We want to support those we love, reduce the burden of rising living costs, and ensure our hard work continues to make a difference. Intergenerational planning is a way to protect and preserve your wealth, so it benefits not only your retirement but also the generations to come.
At its core, intergenerational planning is about maximising financial security while minimising tax liabilities during the transfer of wealth. Without a structured plan in place, your family may face unexpected tax consequences, and the wealth you’ve carefully built may be mismanaged or lost.
More than just a financial strategy, intergenerational planning starts with a conversation. It’s about bringing your family together with your financial adviser to align on values, goals and responsibilities. With transparency and open communication, you can create a plan that gives your loved ones clarity and confidence.
Minimise Tax
A strategic plan can reduce unnecessary tax liabilities, ensuring more of your wealth is passed on to your family.
Improve Communication
Clear planning and open discussions help avoid confusion and conflict, ensuring everyone understands your intentions.
Preserve Wealth
A long-term strategy supports the effective management and growth of your wealth across generations.
Charlie and Alex have spent their lives building a strong financial foundation. As they approach retirement, they’re thinking about the financial wellbeing of their children and grandchildren. Their daughters, Lena and Sarah, have watched their parents make smart financial decisions, and now Charlie and Alex want to ensure that legacy continues.
They decide to engage their financial adviser to explore how intergenerational planning could help them manage their estate and support their family into the future.
Their main goals include:
Helping their children become financially independent and responsible with money
Ensuring their wealth is preserved and used according to their wishes
Supporting their grandchildren while teaching them the value of financial discipline
During discussions, their adviser highlights the importance of aligning financial and personal goals across generations. They also explore potential risks their family may face, such as illness or injury, which leads to conversations about appropriate insurances like life, total and permanent disability (TPD), and trauma cover.
The adviser also suggests that Charlie and Alex could consider funding financial advice for their children and grandchildren. This would give them peace of mind knowing their family has access to ongoing support and guidance.
To begin putting their plan into action, their adviser recommends:
Inviting Lena and Sarah to attend meetings with the adviser to discuss their own financial goals
Holding family meetings to foster open dialogue and shared understanding
Establishing a comprehensive estate plan, including wills, powers of attorney and trusts
Clearly defining roles and responsibilities within the family to ensure the plan is carried out as intended
Setting aside funds to cover the cost of financial advice for their children and grandchildren, helping them implement smart financial strategies
By taking these steps, Charlie and Alex can retire with greater confidence. They know their wealth will be protected, their values and intentions respected, and their family well supported. Intergenerational planning is not just about money. It is about building a legacy of financial confidence, education and trust for generations to come.
