Just over half of Australian parents (53%) have admitted they have never discussed their will and legacy with their children, nor are they prepared for the largest intergenerational wealth transfer in history, according to a recent Perpetual survey.
Further to that, the majority of Australian (76%) did not have a will in place, the study found after surveying 3,000 Australians on their attitudes towards wealth, inheritance, and their families.
It was also expected that 70% of families would lose their wealth by the second generation and 90% would lose it by the third.
At the same time, ‘free range families’, defined as a group which valued their families and interpersonal relationships over their financial situation, were more comfortable around talking about money, with 79% admitting they were willing to discuss money matters with members of their family.
“When it comes to wealth, what’s important to you may not necessarily be important to your children but discussing your wishes openly will minimise any possible surprises or misunderstandings when it comes time to disturbance inheritance,” Perpetual Private’s Andrew Baker, general manager of private clients.
“As your life changes, it is important to continually review and adjust your will in the instance you go through a major life money.
“If you don’t know where to start, having a conversation with a financial adviser can be a good step in helping you work out a plan to discuss inheritance with your family, take control of your finances and give you peace of mind.”