Intergenerational wealth transfer at tipping point: Adviser

Protecting and transferring wealth between generations is prompting financial planners to provide more holistic solutions, a senior financial adviser warns.

Australian Wealth Solutions principal Sam Zervides says financial advisers shouldn't dismiss the growing trend where upcoming generations are demanding their inheritance sooner rather than later.

"We are on the threshold of the largest intergenerational wealth transfer in history with some estimating it could be as high as $3 trillion that will change hands over the coming decades as mature age Australians pass on their wealth to the next generation of family members," he said.

The estate planning conversation should commence as soon as practicable with clients and must be customised to suit their financial and personal situation - not a 'one-size-fits-all' approach, he said.

Getting all the family members on board early in the process is key to providing a solid foundation for the clients' desired outcome.

"Each and every circumstance is unique to each individual, which makes a comprehensive integrated plan crucial to ensure this transfer of wealth is achieved to the client's wishes," Zervides said.

"Therefore, it requires an alliance of planners, accountants and solicitors to address the very personal and unique issues and aspirations of individual clients - many of which can be extraordinarily complex to navigate - especially the family and interpersonal issues."

Zervides added it's now becoming more common for advisers to facilitate clients' non-financial planning needs such as legal and accounting advice in all meetings - an alliance of advice practitioners that "continue service provision as planners, accountants and lawyers beyond the grave for the client."

It is also not unusual the financial planner is requested to retain his or her relationship with the family to ensure continuity of investment and legacy strategy for the remaining spouse and beneficiaries, he added.

"The era of professional advice providers working in a collaborative framework to address the wealth accumulation, protection and transfer requirements has arrived," he said.

Read more: Intergenerational wealthEstate planningFinancial adviceFinancial planningSam ZervidesWills
Link to something lvM4OtMs