Family Offices Videos

Why Unprepared Heirs Risk Huge Tax Hits | the Advisory

The advisory panel highlighted Australia’s looming $5.4 trillion wealth transfer as baby boomers die, stressing that the shift will dwarf even compulsory superannuation in dollar terms. Ryan Watson of Tribeca Financial explained that most of the wealth is tied up in residential and investment property, family‑owned farms and businesses, and superannuation accounts. He warned that eight‑in‑ten high‑net‑worth families still lack a current will, and many have outdated beneficiary designations, exposing heirs to significant tax liabilities. Watson noted, “If the money passes to a non‑dependent, tax consequences can run into hundreds of thousands,” and emphasized that early beneficiary structuring and reversionary pension arrangements can dramatically reduce those costs. He also stressed that advisors need EQ – listening and aligning family expectations – not just quantitative advice. The discussion underscores a market opportunity for wealth managers to provide holistic, forward‑looking planning that blends tax efficiency, legal updates, and family dynamics. Failure to act could erode inheritances and strain relationships, while proactive strategies preserve wealth across generations.