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Wealth transfer worrying older Australians

By Grace Ormsby · August 05 2019
Reading:
egg
egg
egg

Invest

Wealth transfer worrying older Australians

By Grace Ormsby
August 05 2019
Reading:
egg
egg
egg
Crestone

Wealth transfer worrying older Australians

author image
By Grace Ormsby · August 05 2019
Reading:
egg
egg
egg
Crestone

More than half of Baby Boomers hold beyond-the-grave concerns that their wealth might be misused or mismanaged on its passage to the next generation, a report has found.

Crestone Wealth Management’s research has found that tax implications, the misuse of assets, and the ways wealth is distributed are all rated highly as concerns for high-net-worth and ultra-high-net-worth individuals considering the intergenerational transfer of wealth, especially for Baby Boomers.

The use of focus groups as a methodology by Crestone revealed that concerns “are typically quite emotional and personal”, with a strong desire among the wealthy to avoid future personal conflicts or dispute around the distribution of wealth. 

The report noted recognition “that such conflicts or disputes can get ugly” and iterated a need for individuals to be well prepared.

A link was found between the level of worry associated with wealth transfer and having a plan in place to deal with it, according to the research. 

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The report indicated that those with a clear plan “tend to have a will in place and have structured their wealth appropriately, with most having sought or intending to seek support from an adviser”. 

“Those who are worried about the wealth transfer process are less likely to have a clear plan in place than those who are not worried (26.9 per cent compared with 44.6 per cent),” the report read. 

Despite this prevalence of concern, the Baby Boomer category was the generational group most likely to have a clear plan in place, with one in two wealthy individuals in the age bracket indicating they had worked through such details. 

nestegg has previously looked at the phenomenon of ultra-high-net-worth and high-net-worth individuals holding their assets across three “risky” asset classes: cash, Australian equities and residential property.

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Wealth transfer worrying older Australians
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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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