Intergenerational wealth management and transfer

When people think about intergenerational wealth, they only think about transferring wealth through estate planning. However, that’s not the only way wealth can be transferred.

In Australia, the ‘Bank of Mum and Dad’ increasingly helps young adults in range of financial ways. This often includes:

  • giving the gift of paying for tertiary education
  • providing guarantor for a home loan
  • gifting or loaning funds to buy a first home or help maximise a home deposit
  • lending money for larger purchases, and
  • investing in a business or succession planning within business.

Why is intergeneration wealth management important?  

While we expect the goals of your adult children to be different to your own, the good values and behaviours around money management should not be so radically different. Unfortunately, many adult children don’t willing take financial feedback from their parents well. That’s one situation where Alphington Private Wealth can assist.

Another common situation is to protect family wealth. All too often we’ve heard stories where parents give their child a financial gift, simply to have it taken by a partner who decides to part ways with them.

Fundamentally, intergenerational wealth management is import as it can:

  • Preserve, protect and grow family wealth over time
  • Ensure younger generations develop good financial literacy and money management behaviours, inline with parents’ or grandparents’ expectations
  • Reduce and in some cases avoid family conflicts, ensuring the situation is transparent and fair for all parties
  • Provide the opportunity for the next generation to start their adult lives with a step-up whilst protecting those who provide the funding for that to happen
  • Pass on a family legacy for a business or cause the family cares about.

How can we help you with intergenerational wealth advice?

Alphington Private Wealth Financial Advisers can help families with the transfer of intergenerational wealth.

We will help you:

  • Identify the goals of all parties
  • Ensure loans and gifts are made using the right structures
  • Assist the beneficiaries of wealth transfer with their own financial literacy and money management skill sets, and
  • Review estate planning requirements.

To make an appointment, call us on 03 9038 9449 (Melbourne) or 08 8318 6099 (Adelaide) during business hours. Alternatively, complete the contact form and a member of our team will reach out to you to make an appointment for you. We can meet face to face in our offices, and in capital cities. Video meetings are also available.

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