Accountants and financial planners key to estate planning
Independent financial services firm William Buck has pointed to generational change and the need for investors to look more closely at estate planning.
William Buck tax manager Campbell Gould said that with the first of the baby boomers now reaching their 70s, the next 15 to 20 years would see an unprecedented exchange of wealth between generations.
"Unfortunately, estate planning is not just for those in their twilight years," he said. "It is a harsh reality that death can come suddenly and unexpectedly to anyone at any age and when it does, it can be both emotionally and financially devastating."
Gould said financial stress could be greatly alleviated by having proper measures in place that clearly set out how assets were to be administered.
He said effective estate planning would ensure that assets ended up in the hands of those intended by the deceased - something which could alleviate financial stress and potential conflicts amongst the beneficiaries of an estate.
As well, Gould said effective estate planning would ensure proper consideration was given to the taxation implications of wealth transfer.
"Generally people will engage their solicitor to prepare their Will without consulting their accountant or financial adviser," he said.
However he said that many of the solicitors engaged had limited tax knowledge and therefore drafted wills in accordance with the client's instructions, while paying little or no consideration to the taxation and asset opportunities available to their client.
"This can result in serious financial ramifications or missed opportunities for your beneficiaries," Gould said. "It is vitally important that you consult your accountant or financial adviser before preparing or making changes to your Will."
Recommended for you
Over half of financial advice clients say they have found their adviser via a referral from an existing client, according to Dimensional.
As private markets garner mainstream attention, a panel of experts believe access to the asset class through managed accounts will become more widely available, providing opportunities for advisers to diversify portfolios.
While retail investors turned to blue-chip stocks last month, according to AUSIEX trading data, September saw advised investors switch into ETFs.
With the intergenerational wealth transfer underway in Australia, wealth managers are focusing on how they can attract the next generation of advisers to service these younger clients.
