Legacy or liability? Planning a smooth wealth transfer

Passing on wealth to the next generation should be a positive experience. Careful planning and open communication can help ensure it stays that way.

An Unprecedented Transfer of Wealth

The amount of wealth being transferred between generations in Australia is growing at a remarkable rate. Australians inherited an estimated $150 billion in 2024, a more than 70% increase in just a decade, according to JBWere. That figure is forecast to climb rapidly over the next 20 years, reaching $5.4 trillion.

This level of intergenerational wealth transfer represents one of the largest financial shifts in Australian history, and it carries both opportunity and risk. Without a clear plan, even the best intentions can result in confusion, family disputes, tax consequences, or long delays in accessing assets.

“Your legacy is more than the assets you leave behind. It’s the peace of mind, clarity, and support you provide for the next generation,” says Craig Banning, CEO and Senior Wealth Adviser at Navwealth. “Wealth transfer should be a thoughtful, well-structured process—not a burden for your loved ones to sort through.”

What’s at Stake?

In the latest research available, the Australian Law Reform Commission found that almost 40 per cent of adult Australians did not have a will although this figure declined to 7 per cent for those older over 70.ⁱⁱⁱ

Transferring wealth is about more than writing a will. It often involves dealing with family businesses, investment portfolios, properties, and superannuation—all within a complex legal and emotional landscape.

Managing this flow of wealth to family groups, often complicated by divorce and remarriage as well as children from previous relationships, can lead to disputes and legal challenges if not carefully handled. Even with the best of intentions, poor communication and a lack of planning can lead to unintended consequences that may impact the legacy you had hoped to leave.

Designing wealth transfer with purpose

At Navwealth, we believe that a successful wealth transfer plan starts by aligning your financial strategy with your personal values, goals, and relationships. This means looking beyond the numbers to understand what you want your legacy to achieve, now and in the future.

For some, that legacy may involve traditional estate planning: ensuring your children and grandchildren are well cared for and that your wealth is distributed according to your wishes. For others, it may be about using your resources today to support loved ones or causes close to your heart.

Distributing your wealth now or later can depend on family dynamics, any businesses you may own, and whether you have a passion for creating a legacy, such as charitable giving. You may prefer to spend it on yourself and your partner to enjoy your later years or choose to provide support earlier by helping your children or grandchildren with their first home, education, or retirement savings.

The growing housing crisis and the rise of the ‘bank of mum and dad’ has seen more people transferring wealth while still alive. Whether it’s paying school fees, clearing student loans, or contributing to super, these decisions can be incredibly impactful—but they’re not without risk. It’s essential to seek advice to understand how lump sum gifts could affect your own retirement plan, or eligibility for government entitlements.

That’s why our approach is integrated—we bring together financial advice, estate planning and tax expertise to ensure every decision supports your bigger picture.

Long-time Navwealth clients Brian and Narelle know just how reassuring this approach can be:

“Retiring is rather daunting—not knowing whether you have enough money to live the rest of your life and be able to support your children and grandchildren when they might be in need. You give us peace of mind, and we feel so much better and relaxed after spending time with you looking at our situation. So once again, a huge thank you. As I’ve said to so many friends, we first started seeing you when I was 50… I just wish we’d started at 40.”

This is what thoughtful planning makes possible: not just passing on wealth but doing it in a way that supports your life, your values, and your loved ones, on your terms.

Getting your affairs in order

Leaving a legacy should feel empowering, not overwhelming. Whether you’re thinking about how to support your children and grandchildren, protect family assets, or navigate complex family relationships, the right advice makes all the difference.

At Navwealth, we’re here to help you design a plan that reflects your values, safeguards your legacy, and supports the people who matter most.

📞 Speak with your Navwealth adviser or contact our team today to take the next step toward a smooth and purposeful wealth transfer. Book a chat here.

iBequest Report | JBWere

ii The numbers don’t lie | Solomon Hollet Lawyers

iii Wills | ALRC