More than a third of Australians have not even considered estate planning or the transfer of their wealth to the next generation, research commissioned by investment group IOOF has revealed.
The study, conducted by independent researchers AC Nielsen, found 37 per cent of respondents had given no thought to estate planning, with 4 per cent saying it was an issue family and friends could deal with.
It reflects a worrying trend among Australia’s ageing population, IOOF Investor Solutions general manager Renato Mota said.
“Estate planning … ensures your assets are looked after in case of any illness, disability or circumstance that stops you from being able to make sound decisions on your own,” Mota said.
“In the past a will was all that was needed, but with more and more people now holding assets in joint names, trusts and super funds, a more holistic approach is essential.”
The IOOF study also showed 8 per cent of people were concerned about disputes over their estate.
“As much as you would hope family and friends would respect your wishes after your passing, the sad fact is that many can and do use the legal system to dispute a will,” Mota said.
The research released yesterday by IOOF coincides with the launch of its multi-generational investment bond WealthBuilder – Estate Planning.
The product allows investors to nominate beneficiaries who will receive funds without additional fees or taxes, and unlike traditional investment products, earnings from a WealthBuilder investment are taxed at the fund manager level.
This means there is no need for investors to report earnings to the Australian Taxation Office while the investment is retained in the WealthBuilder account, removing the administration burden typically associated with other estate planning strategies.
