Over the next decade, Australian families will pass about $3.5 trillion to the next generation; within 20 years it’s $5.4 trillion. Roughly $120 billion is already changing hands each year—mostly via inheritance. For many families, this will be the largest financial event of their lives.

Why act now? The key numbers in Australia 

• $3.5T in the next 10 years; $5.4T in 20
• About $120B already transfers per year
• 90% of transfers happen via inheritance
• 65% of inheritances will ultimately be controlled by women
• Gen X now holds more property and shares than Boomers; Boomers still dominate cash
• The “Bank of Mum & Dad” sits among Australia’s top 10 home financiers
• Retirement wave: 226,000 intend to retire in 2 years; 710,000 in 5 (avg intended age 65.4).

“Where there’s a will… there’s a relative…” All the more reason to plan properly. 

This blog explores how to prepare for that transfer of wealth — how to protect your legacy, avoid family conflict, and make sure what you’ve built benefits the people you care about most.

 The problem: How wealth leaks out of the family tree

Think of your legacy as a bucket. You’ve spent decades filling it through hard work, saving, investing, and providing for the people you love. Your job now is to pass that bucket down—without holes.

Unfortunately, many families lose a surprising amount of wealth as it moves from one generation to the next, due to a number of factors.

Case study: The farm, the flat, and the fight that never happened

Image: Freepik

The O’Connors (names changed) had two major assets: a Hunter farm (worked by Liam) and an investment flat in Newcastle. Sister Sophie lives in Sydney and doesn’t want the farm. A 50/50 will would have forced a sale—or resentment.

We built a branch-based plan:

• Equalisation rules so Liam could keep the farm; Sophie received equivalent value over time.
• A documented family loan for Sophie’s next property (clear repayment/forgiveness triggers).
• Successor control locked to lineal descendants—no role for exes.
• A digital vault so the kids could find everything fast.

Outcome: no fire sale, no feud, no courtroom. Same assets, better design.

The solution (high level): design for bloodline, control and clarity

A financial planner’s role is to map your family tree, audit ownership and control, coordinate a specialist estate-planning solicitor, and keep it all current. We aim to:

• Quarantine each child’s share (one branch per child)
• Set lineal-descendant clauses (children → grandchildren → great-grandchildren)
• Lock trustee/appointor succession with backups
• Use staged access (education, home, health, entrepreneurship) instead of windfalls
• Maintain a digital vault of deeds, nominations, registers and passwords.

“Failing to plan is planning to fail.” — often attributed to Benjamin Franklin

Forward tax planning that keeps wealth in the family

With around $120 billion already changing hands each year, timing and structure can make a major difference to how much of your wealth stays within the family.

Forward tax planning isn’t just about reducing what you owe this year — it’s about making strategic decisions now that prevent unnecessary tax erosion, disputes, or financial confusion later. By deciding where assets sit, when they move, and who controls them, you can help ensure that more of what you’ve built is preserved for the next generation.

The table below outlines key decision areas to focus on and why acting early makes such a difference.

Wealth creation now—and for the next generation

You need investments for today, and governance for tomorrow.

• Core and growth sleeves: A resilient core for stability plus a growth sleeve to preserve purchasing power.
• Branch “purpose buckets”: Education, health, first home, entrepreneurship—planned generosity.
• Letter of wishes: The story behind the numbers—so decision-makers understand the why, not just the what.
• Plan for vulnerability: Include options for children or grandchildren with disabilities or decision-making challenges.

This is your shelterbelt—protecting the family tree today so the orchard thrives for decades.

“Should I just pay off the mortgage?” — Smart instinct, incomplete plan

Paying off non-deductible debt gives a guaranteed after-tax return equal to your interest rate and real peace of mind. But all-in can forfeit opportunity.

Quick FAQs (NSW & Australia)

What is intergenerational wealth transfer?

Planned movement of assets to the next generation with clear control, tax-smart structures and documentation.

How do I keep my inheritance in the family tree?

Use lineal-descendant rules, lock in successor control, document loans (not gifts), and keep a digital vault. Review regularly.

What is NSW’s “notional estate”?

Certain transactions up to three years before death can be clawed back into the estate—timing and records matter.

Wrap-up: Pass it on with purpose

You’ve spent years building your bucket—now’s the moment to carry it down the generations without leaks. The numbers are clear ($3.5T over 10 years; $120B every year), and so are the risks: relationship breakdowns, control errors, tax drag, missing paperwork. 

The families who thrive are the ones who plan before the inheritance arrives—mapping the family tree, locking in control, setting simple rules that protect today and empower tomorrow.

“The best time to plant a tree was 20 years ago. The second-best time is now.”

Engaging a professional financial planner brings clarity and confidence. The team at Singleton Financial (Watson Wealth) can map your family tree, lock in control, and design a simple, tax-smart strategy that protects what you’ve built and passes it on with intent.

Contact our team for more information. Our financial advisers can help find the ideal solution for your personal circumstances and future goals. 

Disclaimer

The information within does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information, you should consider its appropriateness regarding your objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. The views expressed in this publication are solely those of the author; they are not reflective or indicative of the licensee’s position and are not to be attributed to the licensee. They cannot be reproduced in any form without the author’s express written consent. Elliot Watson Financial Planning Pty Ltd and its advisers are Authorised Representatives of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

But my daughters—currently just 5 and 2 years old—are already on a very different path. And it’s not because we’re doing anything extravagant. It’s because we’re starting early, keeping it simple, and letting time do the heavy lifting.

The power of starting early

Most parents, grandparents, aunts, and uncles want to give children gifts, often toys that are forgotten within weeks. But imagine if, instead of another plastic toy, every $50 or $100 gift went towards an investment for your child’s future.

The earlier you start, the more compounding works in your favour. A dollar invested when your child is 2 could be worth several times more than a dollar invested when they’re 12, simply because it’s been working harder for longer.

As Albert Einstein famously put it: “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it.”

A simple plan that works

Here’s what we’ve set up for our girls:

1. Start small: You don’t need a fortune. Even an initial $2,000 investment, plus $200 a month, started early, can grow into something meaningful.
2. Be consistent: Automate contributions so they happen every month, no matter what.
3. Get the family involved: Encourage grandparents, aunts, and uncles to contribute instead of buying more “stuff.” Every birthday, every Christmas, it adds up.
4. Invest for growth: While they’re young, time is on their side. That means high-growth investments, such as shares, managed funds, or investment bonds, are the best way to maximise compounding returns.
5. Stay the course: The biggest wins come not from timing the market, but from time in the market.

Why we use investment bonds

An investment bond is one of the smartest tools for this kind of long-term wealth creation:

• Tax-effective: Earnings inside the bond are taxed internally at a maximum rate of 30% (gross), which is often lower than the marginal tax rate of high-income earners. Importantly, you don’t need to declare the earnings on your own tax return each year.
• 10-year rule: Hold it for 10 years or more, and all withdrawals are completely tax-free.
• Contribution flexibility: You can increase contributions each year by up to 125% of the previous year’s amount—perfect for growing with your income.

We started with a modest balance, made a manageable monthly contribution, invested in high-growth opportunities, and plan to increase it steadily each year. By the time our daughters turn 21, they’ll have a substantial nest egg ready for a first home, further study, or even their own first investments.

The numbers don’t lie

With an initial $2,000 investment and $200 a month invested in a high-growth portfolio (assuming an 8% p.a. return), by age 21, our daughters could each have around:

$127,000+

That’s from consistent contributions and the power of compounding—not a lump sum, not luck, just steady investing.

Visualising the growth

Here’s what that journey looks like year by year:

(Figures are approximate and based on an 8% annual return, compounding monthly.)

This simple chart illustrates how the investment growth line steadily rises above the contributions line—highlighting the power of compounding.

Teaching patience and money lessons early

This isn’t just an account we set up and forget about. We talk about it regularly with our daughters, using it as a chance to teach them about patience, saving, and long-term thinking.

Sometimes, when they have a choice between spending on lollies, some new toys, or putting money into their investment account, we frame it as a real decision: 

Do you want a short burst of fun now, or something much bigger later?

And here’s the part that makes me proudest: after our eldest’s birthday, her daycare teacher asked if she was going to spend her money on some new toys. Her reply? 

“No, I’m going to put it into my investment account so it keeps growing.”

That was a genuine proud dad moment—seeing our little girl already embracing the mindset of building for the future instead of instant gratification.

A growing trend among grandparents

As financial planners, we also work closely with our older clients—many of whom are now grandparents. One of the most popular strategies we’re seeing is setting up dedicated investment accounts for their grandchildren.

For some, it’s part of a broader estate planning process, allocating funds now so that when they’re gone, a meaningful legacy remains in place. Others like the idea of a final gift at a milestone birthday—for example, having funds become available when a grandchild turns 21.

For families with more substantial wealth, we often extend the vesting age to 25–27, ensuring the money is accessed when the grandchild is more financially mature and ready to make considered choices.

This approach combines two powerful outcomes: supporting the next generation while also giving grandparents peace of mind that their legacy will have a lasting impact.

The bigger picture 

We’re not trying to make our kids millionaires by 21. What we’re doing is more important: giving them options, opportunities, and financial confidence.

When they reach adulthood, instead of just having memories of toys long gone, they’ll have a pool of capital working for them. They’ll learn that wealth is built through patience, planning, and consistency, not quick wins or luck.

And maybe, just maybe, that lesson will be worth more than the money itself.

Ready to set this up for your family?

Contact Singleton Financial to put a smart, tax-effective wealth creation strategy in place for yourself—and a future fund for your child(ren) or grandchildren.

Our financial advisers will help tailor a personalised plan that fits your goals, timeline, and budget, so you can start early, stay consistent, and let compounding do the heavy lifting.

What we’ll help you with:

• Choosing the right structure (e.g. investment bonds, managed funds, or other tax-effective options)
• Setting practical monthly contributions (e.g. $200/month) and one-off gifts from grandparents, aunts and uncles
• Selecting high-growth investment options appropriate for long timeframes
• Creating a simple, automated plan you can stick to.

Take the next step: Book an initial chat with Singleton Financial and get your tailored plan underway.

Disclaimer:

The information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information, you should consider its appropriateness regarding your objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. The views expressed in this publication are solely those of the author; they are not reflective or indicative of the licensee’s position and are not to be attributed to the licensee. They cannot be reproduced in any form without the author’s express written consent. Elliot Watson Financial Planning Pty Ltd and its advisers are Authorised Representatives of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

With over 25 years in the industry, Dyanne comes with an abundance of experience in finance and insurance. She holds a Graduate Diploma of Financial Planning and is a Chartered Life Practioner and JP.

Let’s get to know Dyanne a little better….

What are your qualifications and work experience?

I hold a Graduate Diploma of Financial Planning and am a Chartered Life Practitioner and JP. I’ve been in the finance industry for over 25 years, working with some of the largest insurance companies. I started as an adviser in 2008 and have worked with several boutique firms on the Central Coast and Newcastle, NSW.

What do you enjoy about financial planning?

I enjoy meeting new people and helping clients make the best of what they have available to help achieve their goals whilst protecting their lifestyle.

What do you like to do on the weekends?

I like spending my time on walking adventures with my dog – a wonderful rescue greyhound, driving my classic car, and enjoying all that Newcastle has to offer like dining out, cocktail nights, and fishing. I like exploring the wineries of the Hunter Valley and enjoying long lunches with friends.

What do you like about Newcastle and the Hunter?

Everything! The beaches, parks, the Hunter Valley, and our community.

What is the best piece of financial advice you have ever been given?

My Dad always said, “Make sure your outgoings do not exceed your income, or your upkeep will be your downfall”. This has been the best life and financial advice I’ve received. I know now that the quote was attributed to Bill Earle, but still great advice!

What are your goals for the future?

Continuing to enjoy Newcastle life, travel, and maybe more classic cars.

The information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.

The views expressed in this publication are solely those of the author; they are not reflective or indicative of licensee’s position and are not to be attributed to the licensee. They cannot be reproduced in any form without the express written consent of the author.

Elliot Watson Financial Planning Pty Ltd and its advisers are Authorised Representatives of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

Understanding Estate Planning

Estate planning involves making arrangements for the management and distribution of your assets, liabilities, and personal affairs after your death. It encompasses various legal and financial considerations to ensure that your loved ones are taken care of, and your legacy is protected.

A comprehensive estate plan typically includes the following components

1. Will

A will is a legal document that outlines how your assets will be distributed among your beneficiaries upon your passing. It also allows you to nominate an executor who will be responsible for administering your estate.

2. Power of Attorney and Enduring Guardianship

A Power of Attorney grants someone the authority to make financial and legal decisions on your behalf if you become incapacitated or unable to manage your affairs. An Enduring Guardian is the person you legally appoint to make decisions about your health and lifestyle in the event you cannot make these decisions for yourself.

3. Advance Care Directive

An advance care directive, also known as a living will, enables you to express your wishes regarding medical treatment and end-of-life decisions, ensuring that your preferences are respected.

4. Superannuation

Superannuation is an integral part of many Australians’ wealth. Estate planning involves considering the distribution of your superannuation benefits, which may have specific regulations and tax implications.

5. Trusts

Trusts are legal arrangements that allow you to transfer assets to be held and managed by a trustee for the benefit of designated beneficiaries. They can provide flexibility, asset protection, and tax advantages in estate planning.

The Importance of Estate Planning

1. Protecting Loved Ones

Estate planning ensures that your loved ones are financially secure and provided for after your passing. It helps prevent disputes and conflicts among family members and provides clear guidance on asset distribution.

2. Minimising Taxes and Expenses

Proper estate planning can minimise taxes and administrative costs associated with transferring assets to beneficiaries, potentially preserving more of your wealth for future generations.

3. Ensuring Business Continuity

For business owners, estate planning includes strategies to ensure the smooth transition and continuation of the business in the event of your death, protecting its value and employees.

4. Healthcare Decisions

By documenting your healthcare preferences in advance, estate planning allows you to have a say in the medical treatment you receive and relieves your loved ones of the burden of making difficult decisions.

5. Charitable Giving

Estate planning provides an opportunity to support causes and organisations that are important to you by including charitable donations as part of your estate distribution.

Seeking Professional Guidance

Estate planning can be complex, considering the legal, financial, and tax implications involved. Therefore, consulting with an experienced estate planning lawyer or financial advisor is highly recommended. They can provide personalised advice based on your unique circumstances, ensuring that your estate plan aligns with your goals and complies with the relevant laws and regulations.

Review and Update Regularly

Estate planning is not a one-time event. It should be reviewed periodically and updated whenever significant life events occur, such as marriage, divorce, birth of children or grandchildren, or changes in financial circumstances. Regular review ensures that your estate plan remains current and reflects your evolving wishes.

Estate planning is a vital process that safeguards your assets, protects your loved ones, and ensures your wishes are carried out after your passing. By proactively engaging in estate planning, you can have peace of mind knowing that your legacy will be preserved and your family’s future secure. Start the process today by contacting Singleton Financial on 02 4038 1623.

The information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information, you should consider its appropriateness regarding your objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.
The views expressed in this publication are solely those of the author; they are not reflective or indicative of the licensee’s position and are not to be attributed to the licensee. They cannot be reproduced in any form without the author’s express written consent.
Elliot Watson Financial Planning Pty Ltd and its advisers are Authorised Representatives of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

An Aged Care Specialist Adviser helps step the family and enduring powers of attorney (EPA) of loved ones through the process of putting a loved one into aged care.  They aid in appropriate and considered financial decision making to ensure your loved one and their estate is cared for. They present you with options for types of care for your loved one, protect the estate through maximizing Centrelink or DVA and decreasing fees and help you navigate the difficult and time-consuming process. Through making informed decisions, it is not uncommon that client’s finances can be improved by around $5,000 per year.

Should we sell the house?

How can we afford care?

What is a RAD and ACAT?

How should we pay for the care?

Where is the best place for my loved one?

How do I complete an income and asset test?

..are common questions families have when navigating the aged care process.

How Do Aged Care Specialist Advisers Help?

When putting a loved one into care there are many questions and issues you will face. An aged care specialise adviser can help you with a range on task including:

Structuring and minimising fees to maximise entitlements

Need advice on how to cover the aged care fees? You need an effective strategy that protects your loved one and their estate.  An aged cared specialist adviser can provide you with modelling on how to structure the funding of the RAD, daily care and extra service fees.

Advice on what to do with the family home

An important and sometimes emotional decision is deciding what to do with your loved one’s home. An aged care specialist adviser can help you consider all the influencing factors and aid you in making a decision that suits the circumstances and your family.

 Maximising entitlements and liaising with Centrelink

An aged care specialist adviser can help you deal with the complexities of Centrelink including completing the assessment and checking results. They make this an easier process for you, eliminating the need for you to be on hold with Centrelink for hours. They will look at the circumstances and develop strategies to reduce aged care fees. This helps cover ongoing bills and financially protect the estate.

 Help you make informed decisions

Making informed decisions helps avoid costly mistakes. Aged care is a complicated financial area.  Even small mistakes over the course of few years can add up at a substantial amount.

Estate planning advice and how to treat existing investments

Are there investments purchased months ago or decades ago? Only an experienced adviser will understand these investments and how Centrelink will assess each investment. An aged care specialist adviser will help you structure the estate to protect for future generations.

What Are the Benefits Of Using An Aged Care Specialist Adviser?

 Utilising the expertise of an aged care specialist adviser delivers many benefits.  Not only can they provide advice that could stop you making costly mistakes they can also give peace of mind, maximise funding, deal with Centrelink for you and provide guidance.

If it looks like you will need to transition a loved one into aged care within the next twelve months contact Aged Care Specialist Adviser Gary Watson at Singleton Financial Planning on 02 4038 1623.

The information within, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. The views expressed in this publication are solely those of the author; they are not reflective or indicative of licensee’s position, and are not to be attributed to the licensee. They cannot be reproduced in any form without the express written consent of the author. Elliot Watson Financial Planning Pty Ltd trading as Singleton Financial  and its advisers are Authorised Representatives of RI Advice Group Pty Ltd, ABN 23 001 774 AFSL 238429.

A sudden illness or injury can keep you from working and leave you in financial difficulty. You may get help from a worker’s compensation payout or personal savings, but are they enough to help you meet your expenses and financial obligations?

Taking out an income protection (IP) plan may help provide peace of mind that you’ll be able to meet your financial responsibilities and focus on recovering. IP cover may provide a monthly income while you’re unable to work as a result of illness or injury. It generally replaces up to 75 per cent of your income for a set period of time.

Standalone or through super?

Getting your IP cover through your superannuation fund may be a good idea if you want to avoid paying for your insurance out of pocket. But keep in mind that the policies offered through super may not cover all your financial obligations for an extended period of time.

A standalone IP policy may provide more adequate coverage. It may also offer you tax benefits – IP premiums are usually tax deductible when you fund your cover outside super.

Making your policy affordable

If cost is a concern in taking out a standalone plan, there are a few ways you may be able to make your premiums more affordable. One of them could be choosing a longer waiting period before you receive benefits after being unable to work due to illness or injury. Generally, the longer you wait, the lower the premiums you have to pay.

Opting for indemnity cover may also help you keep your insurance costs down. You’ll have to choose between indemnity and agreed-value cover for your IP plan. Under an indemnity policy, your insurer bases the monthly benefit you would be paid on your income at the time you make a claim. For an agreed-value policy, the benefit is based on your income when you apply for coverage. Premiums for indemnity cover are usually lower than for an agreed‑value policy.

But indemnity policies may vary among providers, so speak to your adviser about which cover may suit you. Your adviser may also help you tailor your plan to meet your income protection needs.

To discuss your in options, contact Singleton Financial Planning today on 1300 713 733 to book an initial meeting.

The information/advice (including taxation) on this website is General Advice Only. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. You should obtain a Product Disclosure Statement relating to the products mentioned, and consider the statements before making any decision about whether to acquire products or services.
We take your privacy seriously and as such we, or RI Advice Group will never ask you to transfer money via email request unless we have spoken to you in person or the transfer is part of an existing arrangement between you and your financial adviser. If you receive any such requests that are outside the agreed arrangements you have with your financial adviser, please contact our office immediately to confirm the validity the request before you take any action – 1800 738 473

Get Back To Basics

If you find it near-impossible to reach your financial goals, you may need to revisit the basics: sticking to a budget. Does temptation usually unravel all your good saving intentions? Consider opening a locked savings account that you can’t deduct money from for a period of time, then automatically transfer funds into it each payday.

Plan For Large Purchases

Whether you need a new fridge or are considering placing a deposit on a home, the earlier you start planning for these purchases, the more manageable they become.

Set Up An Investment Plan

If you’re considering investing this year, developing a sound investment plan is essential for your success. This may include working with your financial adviser to identify clear financial targets, calculate how much you can afford to invest and determine how much risk you’re willing to take on.

Review Insurance Policies

Knowing you are properly insured may help provide peace of mind if your circumstances change unexpectedly. But identifying appropriate insurance policies and levels of coverage for your unique situation can be difficult – and getting it wrong is risky. This is why it’s important to regularly review your insurance policies with your financial adviser, especially if your situation changes.

Check Your Super

If you have multiple superannuation accounts – or have forgotten where your super is – you’re not alone. According to the Australian Taxation Office, there’s $18 billion of lost super waiting to be claimed nationally.[1]

Effectively managing your super is vital for building your retirement nest egg. Contact your financial adviser who may help you manage your super.

Set Retirement Goals

The earlier you set clear goals for your retirement, the more options you’ll have. Work out what assets you have – from your home to superannuation – and review your current spending patterns, then determine your goals for retirement and what lifestyle you’d like to enjoy. This will help you calculate how much you’ll need.

Create An Estate Plan

Estate planning involves more than writing a will. It outlines what you want done with your documents, contacts, debts, bills and assets, making the process easier for your beneficiaries after you’ve passed away.

Whatever your financial New Years’ resolution may be, seeking professional advice may help you make it reality this year. Contact Singleton Financial Planning today to get started.

[1] The Sydney Morning Herald, 2017, ‘Almost $18b in lost super waiting to be claimed’. Accessible at:
http://www.smh.com.au/money/super-and-funds/tax-office-holds-records-of-almost-18-billion-in-lost-super-20170920-gylo3z.html

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.

The information provided in this document, including any tax information, is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out. RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429