Planning for your family’s financial future is one of the most important steps you can take to provide for your children and grandchildren.
Discussions involving money and family can often be complex to say the least! But it is important to involve your family in your estate plan to make sure you and your family are getting the most out of your hard-earned money.
It’s often thought that these plans are only for the very wealthy but that is far from true. No matter what your age or financial position, it is never too early to create an intergenerational financial plan to ensure security and stability for your family in the future.
What exactly is intergenerational planning?
Intergenerational planning aims to effectively plan for the transfer of assets from one generation to the next for when you die or if you are incapacitated.
It’s not the nicest thing to think about but it is important that you have a plan in place and your family are aware of how to manage this plan.
Deaths can happen anywhere and to anyone and unfortunately, young deaths are far too common in Australia.
The last thing a family needs is to be financially struggling or unaware of how to manage the family finances at a time of loss and grief.
Without a shared plan that every one of your family members is aware of and understands, this difficult time can be made even more challenging.
What does intergenerational planning involve?
Intergenerational planning considers your family’s unique circumstances to ensure you have the best strategy when the time comes to passing on your assets.
At Central Coast Financial Planning Group, we understand that all families are unique. The modern family structure is far more complex than it has ever been before due to separations, same sex relationships, blended families, and geographical distances. These situations can make the planning and decision processes slightly more complicated.
We take all of this into consideration when providing personalised, intergenerational financial planning advice.
To successfully create your intergenerational plan, these are some of the things you may like to consider:
- Making sure you have all the appropriate legal documents – such as Wills, Powers of Attorney, and Binding Death Nominations
- Have a record of all the important details you need in one place – the required information for your intergenerational plan can be overwhelming. You may want to gather documentation on your superannuation, insurance policies, and any assets you own such as houses, property, and shares.
- Know your beneficiaries’ circumstances before making decisions – whilst your bequests are made with good intentions, inheritances can also lead to the loss of government benefits or incurring tax liabilities for the beneficiary. Speak with your beneficiaries and work with your professional team to minimise negative implications.
- Have a family meeting to make sure all your family members are involved and happy with the processes and expectations required of them.
It can be difficult to know how to start this conversation. Our Financial Specialists can help facilitate this discussion and ensure all your family members are comfortable and informed.
We also understand that generations, and individuals in general, learn differently about finances and like to manage their money in different ways. By getting to know your family personally, we can provide strategies for all members of your family to feel comfortable with your family finance plan.
- Consider establishing a Power of Attorney or Enduring Guardianship – in the event that you are no longer able to make decisions for yourself, you can appoint someone you trust to act on your behalf. The laws surrounding this decision are very complex and alter between states. Professional advice is recommended if you are considering this option.
Our Experienced Financial Advisers aim to get to know you and your family and understand what is important to you so we can provide personalised advice to help you reach your financial goals.
Once you have an intergenerational plan in place, it’s very simple to update it when changes arise, or you need to submit new information.
Everybody wants to help their family out as much as possible and creating an intergenerational financial plan is just one step you can take to provide stability for your family.
To start planning your intergenerational financial plan, schedule a complimentary initial consultation with one of our Financial Specialists today. We have offices located in Erina (CCFPG), The Junction (NFPG) and Sydney CBD (SWA).
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.