Planning your inheritance, protecting your legacy

Let’s be honest, talking about inheritance isn’t something most families naturally gravitate towards. It brings up emotions around ageing, money, and the future, and it’s tempting to push it aside for “another day.”

But Australia is entering a period of unprecedented generational wealth transfer. And whether you expect to leave an inheritance or potentially receive one, understanding the role it may play in your long‑term financial strategy is more important than ever. For many families, planning your inheritance is becoming a core part of broader financial wellbeing.

So instead of shying away from the topic, now is the perfect time to pause, reflect, and ask:

“What role will an inheritance play in my long‑term financial plan… and am I prepared?”

A significant wealth transfer is coming…

Recent analysis by JBWere estimates that Australia is likely to see $5.4 trillion transferred from one generation to the next over the next 20 years. This wealth will largely flow from Baby Boomers to their children and other beneficiaries, and it will include everything from family homes and investment properties to superannuation and financial assets.

The scale of this shift means inheritances will play a far more prominent role in shaping the financial outlook of many Australians – making planning your inheritance essential rather than optional.

Why inheritances matter

Although inheritances often feel like something to think about “later in life”, they’re already becoming a key part of financial planning for many families. For some, an inheritance may provide additional security in retirement. For others, it may influence decisions around home ownership, investment choices, or broader lifestyle planning.

Many retirees also do not fully draw down their superannuation balances during retirement, resulting in significant amounts of wealth being passed to beneficiaries, sometimes without any prior discussion or planning. This is why clarity and communication are just as important as the financial planning itself.

Open conversations with family members can help:

• provide clarity on intentions
• reduce stress for loved ones
• prevent misunderstandings or future conflict
• ensure assets are passed on as intended
• allow beneficiaries to plan confidently

Bringing these conversations into the present helps ensure wealth is transferred thoughtfully, and in a way that genuinely supports the next generation.

Putting a clear plan in place

A few key steps can make a meaningful difference in ensuring your wishes are carried out smoothly:

Create or update your Will

A valid, current Will is essential for making sure your assets are protected and distributed exactly as you intend.

Review your superannuation nominations

Superannuation doesn’t automatically follow your Will. A binding death benefit nomination ensures your super is directed to the right people, in the right way.

Understand the implications — financial and tax‑related — and seek expert advice

Different beneficiaries can face different tax outcomes depending on the type of asset they receive. Understanding these complexities early can help preserve the value of your estate and minimise tax obligations.

Because every family’s circumstances are unique, professional advice adds clarity and confidence, ensuring your plan aligns with your goals and supports your beneficiaries effectively.

Acting now creates confidence for the future

Whether you’re thinking about leaving an inheritance or considering how one might fit into your own financial journey, the most important step is simply beginning the conversation and planning your inheritance with intention.

If you’d like support in understanding your options or creating a structured inheritance plan tailored to your goals and family circumstances, we’re here to help guide you through the process with clarity and care.

Source

Vanguard November 2025