How a holistic approach to wealth management can unlock wealth transfer benefits

Although it’s vital to keep business, family and personal accounts separate from one another, considering each within a holistic context can help you create a stronger, more equitable wealth transfer plan.

Wealth transfer planning is a crucial part of wealth management. If done effectively, it can secure a comfortable future for your family across several generations.

However, as your wealth grows your financial services needs become more complicated.

One of the challenges Australian business owners face when drawing up wealth transfer plans is that their wealth may be spread across multiple different accounts, assets and investments. Each of these may be managed with the assistance of different professionals from a range of institutions.

This can make it easy to overlook some of the strategies available to you, and ultimately risk you and your family settling for ‘good’ rather than ‘ideal’.

Taking a holistic approach

Australia is on the cusp of the largest intergenerational wealth transfer the country has ever seen. The total value of inheritances being passed to future generations expected to quadruple between 2020 and 2050 alone.^disclaimer

Almost three quarters (70%) of Australian family offices already anticipate a generational shift in responsibility within the next decade.^disclaimerThis means billions of dollars are already flowing to the next generation in a trend that’s expected to gather pace for several years.

Worryingly, a widely cited study out of the US found that as much as 70% of wealth transfer plans fail,^disclaimerwith reasons for these disappointing results ranging from familial infighting to poor planning.

This highlights the importance of taking a holistic view of your wealth when planning a transfer. By looking at all your assets – including your business – as well as your investments, your home, and any other personal wealth you’ve accrued, you may find you have more options to manage the division and distribution of your wealth.

For example, you might be able to access better financing arrangements by including your business as an asset when refinancing. Or by looking at your business alongside your investment portfolio, you may find a more equitable way to divide your wealth among your children – reducing the risk of your estate plan being challenged in court.

To offset these challenges, ANZ Private’s suite of specialist teams can work closely alongside one another and other professionals within their extensive networks. This provides each team with greater oversight of a client’s full financial position that can enable them to construct more appropriate solutions.

In addition to providing business, personal and investment banking services, ANZ Private boasts its own in-house Chief Investment Office conducting Australia-specific research and constructing carefully considered portfolios for clients.

The Chief Investment Office also draws on an extensive network of investment partners around the world to provide insights and access to global markets.

Each team works collaboratively to help clients find the best possible outcomes. This can even be done through a single point of contact.

Learn more

To find out how ANZ Private can help you create a strong wealth transfer plan, get in touch.

• Talk to your ANZ Private Banker directly
• Contact us by requesting a callback
• Learn more about ANZ Private