By Wealth Creation
Inheritance planning, particularly the future division of wealth and the intended treatment of assets, should be openly discussed at the family level. The next 20 to 30 years will see the biggest intergenerational wealth handover in history. In what is widely referred to as the "great wealth transfer", tens of trillions of dollars of assets worldwide are expected to be shifted from the estates of 'Baby Boomers' (people born between 1944 and 1964) to their children and other heirs. A research paper released by the Productivity Commission in late 2021 noted that around $3.5 trillion of assets will likely change hands in Australia alone by 2050. This will mostly be in the form of residential property, unspent superannuation funds, and other investment assets that are bequeathed to family beneficiaries. Inherited assets currently total around $120 billion per year in Australia, and this figure is expected to quadruple to almost $500 billion per year over the next 25 years.
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