Passing wealth to the next generation.
Most families want two things at once: enough to live on for the rest of their lives, and something left that helps the next generation without causing problems. Getting both right takes a plan, made while there is time to explain it.
Decide the principles first, then the structures.
Most family disputes come from uncertainty rather than tax: intentions that were never written down, unequal treatment that was never explained, and assets held in structures nobody else understands. Decide what you want to happen and why, then make sure the will, the structures and the investments all say the same thing.
Your own security first
What you need for the rest of your life, before deciding what can be passed on.
Equal or fair
Whether each child receives the same, or what suits their circumstances, and how that is recorded.
Now or later
Helping during your lifetime, through the estate, or both.
Gift or loan
A gift is simple but final. A documented loan keeps a claim on the money if circumstances change.
Bring them in
Talk to the next generation early, and involve them over time.
Not everything passes through the will.
Wealth passes in three ways, and each needs its own attention.
Through the will
Assets held in your own name pass under your will.
Outside the will
Family trusts, companies and super do not all pass through the will. Each has its own rules, and super needs its own nomination.
During your lifetime
Gifts, loans and help with a first home. Often the decisions families most want to get right.
When it is time for advice.
Families usually bring us in when one of these is true.
A child needs help now
A home deposit, a business, or a difficult period.
The estate is complex
A family trust or company, a business, or property held across several names.
The family is growing
Grandchildren, blended families, or children with very different needs.
A plan the whole family understands.
We are not constrained by any one product, manager or asset class. The plan is built around what you want to happen, for you and for the next generation.
A written plan
Prepared for your family, covering structure, asset allocation, timing and how each part is handled. It is personal advice, prepared for your circumstances.
Implementation, done for you
We put the plan in place: accounts, transfers, sales and the portfolio itself.
A broad choice of managers
Access to a wide range of fund managers and asset classes, chosen for your plan rather than for any one product.
Your advisers, coordinated
We work with your accountant and lawyer, so each decision is checked against the whole picture.
Regular reviews
Online access to your portfolio, and a review each year and whenever markets or life change.
We work with your lawyer and accountant.
Passing on wealth touches the will, the structures and the investments at the same time. Each decision is checked against the whole picture before it is made.
Murdoch Gatti
Founder and Private Wealth Adviser. In financial markets and wealth management since 2006. Master of Commerce (Finance) and Diploma of Financial Services (Financial Planning). Host of The Rate of Change podcast, in conversation with fund managers, economists and business leaders. You work directly with Murdoch.
Authorised Representative No. 001007979 · About York
Your lawyer
Wills, powers of attorney, trust deeds and loan agreements.
Your accountant
The accounts, the structures and your tax returns.
York
The investment strategy, how the pieces fit together, and the conversation with the next generation.
Passing wealth to the next generation.
The questions we are asked most often by families planning how their wealth will pass on.
How do we pass wealth to our children without it causing problems?
Most family disputes come from uncertainty rather than tax: intentions that were never written down, unequal treatment that was never explained, and assets held in structures nobody else understands. Families who transfer wealth well tend to decide the principles first (equal or fair, now or later, gift or loan), keep wills, powers of attorney and super death benefit nominations up to date and consistent with each other, understand how family trusts, companies and super pass on, and talk to the next generation early. We coordinate this with your lawyer and accountant. They prepare the legal documents and advise on tax; we look after the investment strategy and how the pieces fit together.
Should we give the children money as a gift or a loan?
It depends on what you want to happen if circumstances change. A gift is simple, but once given it is generally theirs, including if their relationship ends. A loan keeps a claim on the money, and is far easier to rely on if it is properly documented with your lawyer. Before helping, decide how much you can give without putting your own retirement at risk, whether each child is being treated fairly, and what happens to any loan under your will.
How much can we afford to give?
Work out what you need for the rest of your life first, with a margin for the unexpected. What is left over is what can be given without putting your own retirement at risk.
Do family trusts and super pass under a will?
Not necessarily. A family trust is controlled under its trust deed, and super is paid under the fund's rules and any death benefit nomination. Your lawyer can confirm how each of yours passes; we make sure the investment plan is consistent with it.
Should we help our children buy a home?
Many families do. The questions are how much, whether it is a gift or a loan, whether each child is treated fairly, and what happens if a relationship ends. A family conversation followed by a written agreement prevents most of the disputes we see.
When should we talk to the children about money?
Earlier than most families do. Start with principles and values, and bring in the detail over time. Some families meet once a year with their advisers present.
What about tax when wealth is passed on?
There is no inheritance tax in Australia, but capital gains tax can apply when inherited assets are later sold, and super paid to some beneficiaries can be taxed. Your accountant advises on your position, and we work with them.
Do you prepare wills or trust deeds?
No. Your lawyer prepares the legal documents. We work alongside them on the investment strategy and how the pieces fit together.
How are your fees set?
Fees are agreed in writing before any work begins. A first conversation is complimentary and carries no obligation. Details are in our Financial Services Guide.
General information only. This page has been prepared without taking into account your objectives, financial situation or needs. Before acting on it, consider whether it is appropriate to you in light of your objectives, financial situation and needs. York does not provide tax advice; we work with your accountant on your own position.
Three steps, at your pace.
There is no obligation at any stage, and no recommendation is made until you engage us in writing.
01 A first conversation
Twenty to thirty minutes, complimentary, to understand your family and what you want to happen. A rough picture is enough.
02 A written plan
If we proceed, we agree the fee in writing first, then prepare a written plan for your family.
03 Put in place, and reviewed
We implement the plan, coordinate with your lawyer and accountant, and review it with you each year and whenever life changes.
Start with a conversation.
If you are considering a long-term advisory relationship, the first step is a 20–30 minute conversation to understand whether we are the right fit for you and your family.
Three short questions. An adviser will be in touch shortly after.
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