It’s estimated that more than $3.5 trillion of assets will be transferred from older generations to younger generations in Australia over the next 25 years. When older generations think about their wealth, their legacy planning will be an increasingly important part of their consideration, especially with complicated family structures and differing values and beliefs across generations.

Legacy planning refers to the process of preparing for the transfer of one’s assets, values, beliefs, and wishes to future generations or beneficiaries. It involves more than just distributing wealth; it encompasses ensuring that your values, principles, and goals are passed down effectively.

Legacy planning typically involves several key components:

  1. Estate Planning
    This involves the creation of legal documents such as wills, trusts, and powers of attorney to ensure the proper distribution of assets according to your wishes after death.
  2. Family Communication
    Effective planning often involves open and honest communication with family members about your values, wishes, and intentions for your estate. This helps prevent misunderstandings and conflicts among beneficiaries.
  3. Charitable Giving
    Many individuals include charitable giving as part of their legacy, whether through donations during their lifetime or through provisions in their estate plan.
  4. Personal Values and Stories
    Legacy planning may also involve documenting personal stories, values, and beliefs to pass on to future generations. This can be done through written documents, recorded interviews, or other forms of media.
  5. Education and Mentorship
    Some individuals choose to include provisions for education or mentorship programs in their succession planning to support the growth and development of future generations.
  6. Tax Planning
    Succession planning often includes strategies to minimise estate taxes and other financial obligations to maximise the value of assets passed on to beneficiaries.
  7. Professional Guidance
    Many people seek the assistance of financial planners, attorneys, and other professionals to help them develop and implement their legacy plans.

Overall, legacy planning is about more than just the distribution of assets; it’s about leaving a lasting impact and ensuring that one’s values and beliefs are carried on for generations to come.

In the coming months, the BYRONS Wealth Management team will cover a number of these topics with a series of articles addressing areas of legacy planning and drawing on where we are already assisting clients.

 

Disclaimer: The information above is intended as general information only and should not be taken as advice. No action should be taken prior to taking financial advice tailored to your personal circumstances.

Byrons PWS Pty Ltd as Authorised Representative of Professional Wealth Services Pty Ltd | ABN: 58 174 609 776 | AFS Licence Number 312047

We're your trusted advisors

Connect with us to explore how we can provide a tailored service to support you and your business outcomes.

BYRONS welcomes you to connect with us to discuss your questions, comments and feedback. Please connect online using LinkedIn, by phone or in person by visiting our office.

Contact us to explore how we can help