In 2021, research by the Productivity Commission (PC) found the annual sum of intergenerational inheritances grew from $24 billion in 2002 to $52 billion in 2018.The PC expects this trend will continue, citing an earlier study from Griffith University that predicted $3.5 trillion would change hands in the two decades ending 2037. 1
With more at stake, Australian courts are seeing an increase in the number of wills being challenged by adult children.2 What’s more, families have become more complicated with blended and step families now accounting for a larger proportion of all households.3 Even families with a history of harmony may find that the grieving process heightens tensions and fosters suspicions. Some commentators suggest that as many as 70% of intergenerational wealth transfers fail due to conflicts and ‘bungled execution’.4
As you think about your legacy, here are five things you can do to help ward off family disagreements.
Communicate openly. By discussing your intentions with your family, you’ll help prevent misunderstandings and reduce the likelihood of disputes. Although it may be uncomfortable, holding a family meeting to discuss your will can help address concerns. If any family members are unhappy about your wishes, dealing with their concerns while you're alive is better than them doing so in a courtroom later.
Aim for fairness and explain any unequal distributions. If you’re dividing your estate among your children, equal shares can reassure each child that they are equally loved. Yet ‘sharing equally’ will require some expertise if your assets are lumpy or complex. Ensure your will is professionally written so that your intentions are executed.
You may, however, choose to leave unequal shares to your heirs. Perhaps you’ve already given one of your children an early inheritance such as a home deposit and you plan to redress the imbalance in your will. Or one of your children has a chronic illness and needs funds for ongoing care. If so, explain your reasoning in person, in your will, and/or in a separate letter to avoid feelings of unfairness.
Update regularly and keep it accessible. Keep your will up to date, especially after major life events like marriages, births or deaths in the family. Make sure that your executor and your legal representative each have the latest signed copy.
Consider a testamentary trust.A testamentary trust can ensure that each beneficiary, including children, receive their inheritance according to your wishes. Testamentary trusts may reduce the overall tax burden on your estate and your beneficiaries. Trusts may also offer protection from creditors and legal claims from others, such as a child's ex-spouse. What’s more, if you have an asset that you don’t want sold, such as a holiday home, the property can be owned by the trust for use by your family.
Be clear and specific. Set out how you want your assets distributed as ambiguities can lead to differing interpretations and family conflicts. Include detailed instructions for your personal and sentimental belongings.
Lastly, it's crucial to remember that your will is just one piece of the estate planning puzzle. It should align with your broader financial plan, including your superannuation and insurance beneficiary nominations.
How your Count Financial adviser can help
Talk to your Count Financial adviser about how your will can be set up in a way that safeguards your assets and keeps the peace. They’ll be able to refer you to specialist estate planning experts so you can move towards your goals with confidence.
References for compliance approval:
1. Productivity Commission, Wealth transfers and their economic effects, November 2021, p62
2. AFR The reason so many adult children are challenging wills, 7 February 2025, accessed 12 February 2025
3. Australian Institute of Family Studies, ‘Families and family composition’, Australian Government, August 2023, accessed 20 February 2025
4. AFR, Why this Baby Boomer is leaving everything to her grandkids - not kids, 14 September 2024, accessed 12 February 2025
5. ATO, Key changes for trusts, 3 July 2024, accessed 11 February 2024
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