How to Protect Your Family’s Legacy Across Generations
More than $5 trillion will be transferred between generations in Australia over the coming decades (Productivity Commission, 2021). But for many families, what should be a legacy of financial security becomes a source of conflict, confusion—or worse, wealth destruction.
Intergenerational wealth transfer isn’t just about passing on money. It’s about making sure your hard-earned assets support, not strain, the people you love. Without proper planning, the risk of tax losses, family breakdowns, and poor financial decisions can derail even the most well-intentioned legacy.
In this article, we’ll explore:
- The common risks that can erode family wealth
- What a secure legacy strategy looks like
- The practical steps you can take now to protect your family’s future
The Risks Lurking Behind Intergenerational Wealth Transfer
When wealth changes hands—especially between parents and adult children—there’s a lot that can go wrong. And most of the risk isn’t in the assets themselves—it’s in the planning (or lack of it).
Here are five of the most common issues we see:
🧾 Tax traps
Capital gains tax, superannuation rules, and potential estate duties can quietly erode your estate if structures aren’t reviewed regularly (ATO).
🏚️ Family breakdown
Blended families, sibling disputes, or differing expectations can lead to bitter disagreements—especially when things aren’t clearly documented.
📉 Wealth erosion
Without financial literacy or guidance, beneficiaries may mismanage their inheritance or fall prey to poor advice.
📜 Unintended outcomes
Old wills, forgotten powers of attorney, or outdated trust deeds can trigger unwanted outcomes—or legal battles.
⚖️ Regulatory complexity
Rules around trusts, tax, superannuation and estate planning change constantly. What worked five years ago might now be inefficient—or invalid.
These issues don’t just cost money—they often cause lasting damage to family relationships.
Protecting Your Legacy: What Effective Planning Looks Like
The good news? With the right structures and support, you can protect your legacy and set the next generation up for long-term success.
Here’s what we recommend:
✅ Comprehensive estate planning
Modern, legally sound wills. Enduring powers of attorney. Advance health directives. These are non-negotiables for avoiding costly surprises.
✅ Tax-effective structures
Trusts, testamentary trusts, and debt recycling strategies can significantly reduce tax leakage and improve asset control.
✅ Facilitated family conversations
Talking about money isn’t always easy—but guided discussions between generations can pre-empt misunderstandings and align expectations.
✅ Financial education for heirs
Help beneficiaries understand how to manage wealth—so they’re not overwhelmed or misinformed when the time comes (Moneysmart).
✅ Integrated financial planning
Your estate plan should work hand-in-hand with your retirement strategy, investment structures, and insurance cover.
At Wealth Fundamentals, we work with families to ensure their legacy isn’t just legally valid—it’s structured, understood, and sustainable.
Why It Matters: Your Legacy Is About More Than Money
Passing on wealth is never just a financial event. It’s a deeply personal process that can either strengthen—or strain—family relationships.
Poorly planned transfers can result in:
- Unfair or contested outcomes
- Major tax bills or Centrelink issues
- Legal disputes that drag on for years
- Lost wealth through poor investment choices
- Emotional fallout that impacts families for generations
But with thoughtful planning, the opposite is possible: A confident, well-supported transition that honours your values, protects your loved ones, and builds financial resilience for the future.
Secure Your Family’s Future Today
Every family’s situation is unique. If you want to secure your legacy and protect your loved ones, now is the time to act.
👉 Speak with Wealth Fundamentals to ensure your wealth transfer is a success—for you, and the generations to come.
Frequently Asked Questions (FAQ)
Q: How early should I start planning for wealth transfer?
A: Ideally, 5–10 years before retirement or before any major asset changes. But it’s never too late to improve your planning.
Q: Do I need a will even if my estate is small?
A: Yes. A will ensures your wishes are followed, and helps prevent disputes—regardless of your asset size.
Q: What is a testamentary trust and why is it helpful?
A: It’s a trust created by your will that can provide tax advantages, asset protection, and flexibility for your beneficiaries.
Q: Can you help facilitate family conversations?
A: Absolutely. We often guide intergenerational discussions to align expectations and avoid miscommunication.
Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only – unless otherwise stated. Wealth Fundamentals strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances. This information is based on our understanding of legislation at the time of writing. Such legislation may be subject to change. This publication cannot be reproduced in any form without the express written consent of the author.
