The biggest wealth transfer in Australian history is already underway, with trillions of dollars set to pass from Baby Boomers to younger generations over the coming decades.
Yet, despite this significant financial shift, many Australians have not taken the necessary steps to prepare their estates.
Recent reports highlight that a large number of people either do not have a will, have an outdated one, or simply haven’t discussed inheritance with their families.
While estate planning might not be a top priority for many, taking time to plan early can help prevent complications, unnecessary stress, and unexpected legal hurdles down the track.
Nearly half of West Australians don’t have a will or aren’t sure if they do
The Solomon Hollett Lawyers’ Inheritance State of Play in WA report provides valuable insights into how people are approaching estate planning in Western Australia. Some key findings include:
42% of respondents either don’t have a will or are unsure if they do.
14% have wills that are over 10 years old, which means they could be outdated.
60% expect an inheritance dispute within their family.
22% acknowledge that their loved ones may struggle financially without an inheritance.
These numbers indicate that many people may not be fully prepared when it comes to planning their estates. While it’s easy to put off, having a structured plan in place ensures that assets are distributed smoothly and in accordance with personal wishes.
The risks of not having a will
Without a will, intestacy laws determine how an estate is distributed. This process can sometimes lead to outcomes that don’t reflect what the person would have wanted. Common issues that arise when someone dies without a will include:
Assets being distributed based on legal formulas, rather than personal preferences.
Potential delays and legal processes that could take months, or even years, to resolve.
Challenges for blended families, stepchildren, and de facto partners.
An outdated will can also create problems, especially if family circumstances or financial situations have changed. Regularly reviewing and updating estate plans ensures that they continue to align with personal and family needs.
The great wealth transfer is here – but many are unprepared
The Australian Financial Review article, "Baby Boomers and their families ‘ill prepared’ for big wealth transfer", highlights a similar trend at a national level.
Key insights from the article include:
over 40% of high-net-worth Australians do not have a will
50% of people are unaware of the value of their inheritance.
many families have not had discussions about estate planning, leaving future beneficiaries unclear on expectations.
With an estimated $3.5 trillion in assets changing hands in Australia by 2050, it’s more important than ever for individuals and families to start conversations about estate planning.
Ensuring that assets are structured correctly and that plans are clearly communicated can help avoid uncertainty and potential disputes in the future.
Why estate planning often gets overlooked
Many Australians put off estate planning for a variety of reasons, including:
Assuming they don’t need one – Some believe they don’t have enough assets to justify a will, but superannuation and life insurance alone can make an estate worth hundreds of thousands of dollars.
Delaying difficult conversations – Discussing money, inheritance, and financial security can feel uncomfortable, but open discussions can help avoid confusion later on.
Thinking they’ll “get around to it” – Life gets busy, and estate planning often gets pushed to the bottom of the to-do list.
However, taking the time to put a plan in place ensures that loved ones are provided for and that assets are distributed in line with personal intentions.
Practical steps you can take in estate planning
Estate planning doesn’t have to be complex or overwhelming. Here are some simple steps to help ensure everything is in order:
Check if you have a will – If not, consider creating one with the help of a professional.
Review your existing will – If it’s been more than five years since your last update, it may be time for a review.
Consider superannuation and life insurance – These assets don’t automatically form part of a will, so ensure that beneficiaries are correctly nominated.
Discuss your wishes with family – Open conversations help set expectations and avoid misunderstandings.
Seek professional guidance – A financial planner or estate lawyer can help structure your assets to achieve the best outcomes.
Get started with estate planning
If you’re unsure where to begin, our estate planning blog also offers practical insights on how to start planning for the future.
Source References:
Solomon Hollett Lawyers' Inheritance State of Play in WA report – 42% of West Australians either do not have a will or are unsure if they do. Read more: Solomon Hollett Lawyers
Australian Financial Review – Many Baby Boomers are unprepared for estate planning, with 40% lacking a will and 50% unaware of their inheritance.Read more: AFR
WA Today – The intergenerational wealth transfer in WA could lead to family disputes and financial complications.Read more: WA Today
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This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
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