We’re on the cusp of the largest intergenerational wealth transfer in history.  With an estimated $3.5 trillion to be handed to millennials and Generation Z over the next two decades, financial advisers can take practical steps for implementing strategies to position themselves as a trusted source to help manage this change.

---

Watch Impending Intergenerational Wealth Transfer – the roadmap to harness an emerging client base here.

[Timestamp: 30:29 – 38:35]

Summary:

• Deliberate strategy for family succession planning: The panel recognizes the importance of addressing intergenerational wealth and has a deliberate strategy for family succession planning. They focus on understanding clients’ values and goals for themselves, their children, and other family members, separating advice from investment to ensure a comprehensive approach.
• Family grouping meetings and values-based conversations: The panel facilitates family grouping meetings and values-based conversations to create emotional connections and demonstrate their commitment to the well-being of the entire family. These meetings take place in the panel’s boardroom, providing a conducive environment for parents to discuss their aspirations and concerns for their children’s financial affairs.
• Engaging millennials and the next generation: The panel sees engaging millennials and the next generation of wealth transfer as an extraordinary opportunity. They emphasize the importance of building an intergenerational business and having ongoing conversations with clients about the longevity and continuity of their financial support. This proactive approach ensures a seamless transition of wealth across generations.
• Peace of mind for parents: One of the key benefits provided by the panel is peace-of-mind for parents, knowing that their children have a plan and will be well looked after. This adds significant value to the management of intergenerational wealth transfer, as parents can trust that their financial legacy is in capable hands.
• Building a sustainable business model: Trent highlights the importance of building a client base that provides ongoing revenue during the accumulation phase, rather than solely relying on the retiree market. This approach ensures a sustainable business model and supports the continuity of financial support across generations.

---

An intergenerational wealth solution

This article was developed and supplied by Heffron Managing Director, Meg Heffron. Meg has been working exclusively with SMSFs since 1998. Her firm specialises in all aspects of SMSFs – administration, actuarial, education, technical support and documents. They have an extensive range of content and CPD certified education (including specialised courses) for advisers and accountants looking to learn more about superannuation and SMSFs (www.heffron.com.au)

Summary:

• Tougher tax and super rules mean almost every member’s super will have to leave their fund once they and their spouse have died.
• SMSFs present some unique opportunities to help clients maximise their legacy and advisers build their engagement with future generations.
• The SMSF structure allows for collaboration with family.
• More wealthy parents are looking to include their children in their SMSF.
• Simple strategies such as Government co-contributions and understanding how the First Home Super Savers Scheme can be transformative when it comes to a young person’s appreciation of their super and the value of adding to it voluntarily.
• The next generation will understand the value of advice early, rather than having to be convinced later in life.
• Just as it has become more common for parents to proactively support their children in buying homes, it seems entirely feasible that extending this to making super contributions will become more mainstream.
• In some circumstances it’s possible to hand an asset down through the generations without it ever leaving the SMSF.
• There are important challenges to consider when sharing an SMSF and it’s critical to go into this structure with clear goals, an understanding of the risks and a shared view of how it will end.