Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Retirement

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

  • April 30 2018
  • Share

Retirement

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

By Tim Neary
April 30 2018

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

vulnerable baby boomers warned about

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

author image
  • April 30 2018
  • Share

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

vulnerable baby boomers warned about

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.”

Advertisement
Advertisement

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
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.