How to make the most of the $5 trillion wealth transfer

A massive handover of wealth is starting to take place right now in Australia. Over the next decade, more than $5 trillion from the Baby Boomers will be inherited by their children¹. Two thirds (63%) of those heirs will be women. Why is that? Firstly, there are more women than men aged 45 or more. Secondly, thanks to changing perceptions around gender equality, inheritances no longer default automatically to the eldest son. What this means is that this demographic of women in Australia is going to inherit over $3.2 trillion².

If you're one of these women, this is an incredible opportunity to create financial freedom and build your own legacy. However, for those not skilled in investments, it also presents some enormously challenging questions: 'What should I do with this money?' and 'Where do I start?'

If you're not familiar with the world of investments, tax or estate planning, the first step is not to panic. You're not alone in your unfamiliarity. Many women - and men - in your position are asking the same questions. The good news is, you don't need to be an expert to have control and make decisions that benefit you and your family, hopefully for generations to come.

Let's imagine that you've inherited, or are in line to inherit, wealth of some description. Everybody has a different definition of wealth - for some it's $1 million, for others it's $100 million - but regardless of the figure, let's assume this is money you want to protect, manage and grow. For the purposes of this guide, we'll assume you are going to rely on an investment professional rather than manage the inherited wealth yourself (for this, see breakout box below). Here's a simple step-by-step guide to help you get started:

1. Learn the basics of inheritance and estate laws

Australia does not have uniform inheritance and state laws across its various states and territories. While there are many similarities, differences exist in areas such as probate procedures, intestacy laws and estate taxation.

A good place to start therefore is by learning the basics of the inheritance laws that impact you. Once you've understood the essentials of your local framework, then you're well placed to understand how to protect your assets.

How to learn:

• Finder has a comprehensive summary of what is involved with estate planning, so that you're aware of the key terminology
• Check out the ATO's website for information on taxes related to inheritance
• Most qualified financial advisers or legal professionals will offer free or low-cost initial consultations. For financial advisers, you may want to consult the Profession of Independent Financial Advisers, or the Financial Advice Association of Australia. If seeking legal advice, you will want to ensure their focus is on estate planning.

Here are some trustworthy places to learn more and get advice:

• Financial Counsellors Australia: fca.org.au provides free, confidential advice on managing your money and planning for the future.
• Australian Government's MoneySmart: This easy-to-read and easy-to-understand website offers well written guides on estate planning, financial basics and much more.
• Legal Aid and Not-for-Profits: Many offer free or low-cost legal advice about wills and estates. Search to find some options in your capital city or suburb.

Another approach is to identify someone whose wealth and lifestyle you admire. At your next social gathering, ask them where they source their financial advice. Ask your contact further questions about the adviser in order to get a feel for whether you would be compatible with them. If the adviser seems right for you, ask your contact to make an introduction. If not, ask them if they know of others they could recommend.

It's always worth going into a consultation with an adviser or legal professional, having read up on the topic. This means that you'll be able to have a more informed conversation and also be able to ask some specific questions, rather than ask questions that are general in nature.

2. Research, research, research

Let's say you want to find a financial adviser or wealth manager to assist with managing your money; here are some tips for your online research:

• Take a look at the adviser's website. Does it look contemporary, or does it look a bit dated? You don't want anything too showy but you do want to get the sense they know what they're doing.
• Have a look at their customer reviews, usually available on the website, in detail. Do they talk about the qualities of the people servicing them (for example, 'they were so nice') or do they focus on the adviser's achievements ('they doubled my money in 5 years')?
• Check the year they were established to work out how long they've been operating.
• Crosscheck their ABN number, which should be available on their website, with the federal government's Australian Business Register ABN Lookup (abr.business.gov.au).
• Their Australian financial services (AFS) licence number should also be easily accessible on their site; crosscheck their licence number on the Moneysmart financial advisers register – go to moneysmart.gov.au and search 'financial advisers register'. This register can tell you where the adviser has worked, their qualifications, training and membership with professional bodies and the kinds of products they can advise on. This makes sure they're actually licensed to give you advice for superannuation – and not, for example, just provide advice on investments or life insurance.
• Also check any off-site reviews, such as those available via Google, Trustpilot or ProductReview. Do these reviews tell a different story to those on the adviser's website?

Expert insight

"With women set to control an estimated $3.2 trillion as part of the greatest wealth transfer over the next two decades, there is a powerful opportunity for them to shape not only their family's financial future but also the broader social impact landscape. Wealth transfer is not solely about assets - it's about values, legacy and purpose. Women can take meaningful action by engaging early and normalising conversations around wealth and its significance within the family. Whether a bequest is directed to charity or family, thoughtful planning and values-led dialogue are essential. It's also critical that women seek advisers who understand their unique perspectives and aspirations - ensuring their inheritance journey is both empowering and aligned with what matters most. "

Kim Venter

Director - Family Advisory, JB Were.

3. Interview them

After you've completed your online research, you're now ready to have an initial meeting with the adviser or wealth manager you think might be right for you. Before the visit, make sure that you're not being charged for the session and that no advice will be given during or following it. During your meeting, ask the adviser or wealth manager a few basic questions, such as:

• Who owns your business?
• What types of clients do you advise?
• How long have you been giving advice to other clients in my position?
• What is the fee structure for any advice you may give?
• What's your investment philosophy?
• What's your attitude to risk when it comes to your clients?
• Are there any conflicts of interest I should know about?
• How and when can I expect communications from you?
• Which of your clients can I talk to as a point of reference?

Essentially you're looking for trust points. Does this person or group feel reputable? Are they a good fit for you, in terms of understanding where you're at in life, as well as from a personality perspective? What's their track record? Hopefully, the answers you receive give you a feel for whether this adviser is right for you.

In the same way you don't marry the first and only person you meet, you'll want to 'date' a few potentials to work out which adviser or wealth manager is right for you. This too is going to be a long-term relationship.

4. Cross-check

In the same way you would seek two (or more) opinions for surgery or after being diagnosed with a significant illness, it makes sense to seek other opinions when it comes to your financial future. This is a big deal! It will likely be the most important investment of time and money that you make. So what if you receive two sets of advice that are identical? Great – you can be absolutely certain you're on the right path. Ideally, one of the advisers finds a loophole or recommends another strategy that can potentially make you even better off; in this case, the money you've spent on their fee has been worth every cent. Ultimately, seeking a second (or third) opinion only yields upside.

5. Start talking with family about your wealth & future

Once you've appointed a financial adviser or wealth manager, then you need to close the loop by updating your own estate plan. It's your plan for who gets your estate and how. If you don't have one, now is a good time to start.

What to do:

• Find your will or estate plan, if you have one.
• Make sure it's up to date; it's amazing how quickly time flies and your circumstances have changed
• Consider talking with a lawyer or your financial adviser / wealth manager about how to make or improve your plan. They can help you understand what's needed.

It's also important to start talking with your family about your wealth and future as it helps reduce surprises and disagreements later. Plus, sharing your wishes ensures everyone understands and respects your decisions, meaning less likelihood of legal disputes after you've gone. As the saying goes - often the only winners from a legal dispute are the lawyers.

What to say:

• Explain your plans and intentions clearly.
• Share your thoughts about who should benefit and how.
• Encourage open dialogue - it's better to talk now than to face conflicts later

You don't need to be a financial expert to make smart choices about your money. The simple steps of education, research and cross-checking your plans should be able to provide you with a growing portfolio as well as peace of mind. This is your chance to secure your financial future, as well as leave a legacy that reflects your wishes.

1. Why our new inheritocracy is bad for the country
2. Women became millionaires at twice the rate of men

FAQs

• Where do I start if I'm receiving an inheritance and don't feel confident I can manage it?

  Learn the basics of the inheritance laws that impact you as they vary from state to state; you may want to start with a simple search eg 'NSW inheritance laws' and then move on to the ATO's website for information on taxes related to inheritance. Make sure you understand the terminology too; Finder's article on estate planning is useful.

• Where can I seek free guidance on how to manage my money?

  Free guidance is always useful but be prepared that it won't necessarily be in-depth advice and it may not be tailored to your specific needs. Financial Counsellors Australia provides free confidential advice on managing your money, while Legal Aid also offers free or low-cost advice about wills and estates. Online, a very helpful resource is the government's website, MoneySmart.

• If I want to find a financial adviser or wealth manager, where is a good place to start?

  The Financial Advice Association of Australia will help you locate a financial adviser in your area. You may also want to look at the directory of the Profession of Independent Financial Advisers. For any financial adviser or wealth manager, you should be able to easily crosscheck their ABN number on ABN Lookup and their AFS licence number can be crossed checked on Moneysmart.

• What else should I be thinking about once I've appointed a manager or am managing my inheritance myself?

  If you've inherited money, then you need to make sure that your own will and estate planning is updated. Make sure your family is up to speed with your decision-making process, as it reduces the likelihood of disputes later on.

Written by

Pascale Helyar-Moray

Superannuation and wealth expert

Pascale Helyar-Moray OAM is a multi award-winning entrepreneur who uses innovation as a means to solve big-picture problems. She's the host of the Dare To Be Rich podcast, the author of Rich Woman Poor Woman and the founder of Grow My Money. See full bio

Pascale's expertise

Pascale has written 7 Finder guides across topics including:

• Superannuation
• Insurance
• Budgeting
• Entrepreneurship
• Innovation
• Capital raising