The current housing crisis has shown a great divide in the economical differences between the millennials and baby boomers. In the search for housing, and funds for a house, many Australians are looking at one of the biggest sources of property, their parents’ estate. But with so many relying on inheritance for financial aid, are there Wills in place to make this a smooth handover?
The baby boomers, those born between 1946 and 1964, is a significant portion of Australia’s population. They also hold a disproportional 67% of the nation’s wealth, generated from the financial circumstances of a growing post WW2 economy. These two factors will see by 2030 one of the largest financial handovers as 5 million baby boomers are expected to pass within that period. It is these financial resources that many millennials are anticipating in helping them securing homes and relieve debt during difficult economic times.
With this massive exchange of financial assets anticipated, having a plan in place to manage them is essential to ensuring it is not squandered in legal disputes between family members. Many Australians don’t have a will made yet or have wills that are outdated. As circumstances change, family dynamics shift, and assets wax and wane, having a will that is up to date is key to ensuring longevity.
While there are laws in place to with the situation where someone dies without a will, this doesn’t account for the plans you may have for your loved ones. Families with complex structures, such as children from previous relationships, are at a higher risk of disputes arising with desirable assets such as houses and land on the line. When the distribution of a deceased estate becomes disputed, it is the beneficiaries that will be worse off, as the estate’s finances are drained by legal costs that could have otherwise be avoided.
Speaking with a lawyer over estate planning does more than just have documents created to manage your assets after passing. You will receive advice on how your assets will be handled and what impact your choices can have on how you treat your property while you’re alive. Early distribution of assets before your passing is a viable means to distribute your property to prevent future disputes. A frank discussion with your family is also key to avoiding conflict, where transparency as to your wishes give your beneficiaries realistic expectations of what they can receive in the future.
The passing of the vast baby boomer wealth to the next generation is inevitable and needs to be addressed now. A Will made with the guidance and advice of a lawyer is the best way to ensure that your estate is distributed by your loved ones effectively and with little dispute. It is a small expense today that will save your family crushing costs in the future.
For more information or assistance with preparing these documents, contact our office today on 9375 3411.
