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‘Vulnerable’ Baby Boomers warned about prudent, timely estate planning

Australia is soon to experience the biggest intergenerational transfer of wealth in history, but many people are unprepared, according to one wealth mutual.

Australian Unity says it is estimated around $2.4 trillion is to be transferred from Baby Boomers to the next generation, making it the most money passing between generations than ever before.

Executive general manager of life and super, Adnan Glinac, said the sheer amount of wealth to be transferred is a reminder for Australians to ensure they have sufficient control over their estate distribution planning.

“While nearly 60 per cent of Australians have a will, many still remain vulnerable,” he said.

“Research suggests nearly three-quarters of contested wills are successfully changed.”

Mr Glinac said that safeguards being in place to ensure that money goes where it’s intended is a big part of estate planning.

“This means careful financial structuring to protect the transfer of wealth from one generation to the next.”

Mr Glinac said there are structures Baby Boomers should consider to ensure “hard-earned” money is passed onto future generations effectively.

“We often find that blended families, parents with children who have special needs, or those with philanthropic wishes, want their wealth distributed in a very specific and predetermined manner.

“Often traditional will structures lack the flexibility to meet these needs.”

Mr Glinac also said that investment bonds can help Baby Boomers to protect assets.

He added that they sit outside of a deceased person’s will.

“They are not subject to the usual delays associated with probate, and are very difficult, if not impossible, to successfully challenge.

“Another benefit of investment bonds is that nominated beneficiaries will receive the proceeds tax free at any time upon the owner’s death, irrespective of how long the investment has been in place.”

 

‘Vulnerable’ Baby Boomers warned about prudent, timely estate planning
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