Preparing your estate planning practice for a once in a generation opportunity

Preparing for a once in a generation opportunity

Australia is on the brink of significant demographic and economic changes as its population ages and the largest wealth transfer in history begins. Over the next 20 years, the country will see a dramatic increase in its elderly population, accompanied by a substantial transfer of wealth from the Baby Boomer generation to younger generations.

The Aging Population

Australia’s population is aging rapidly. The number of people aged 65 and over is expected to grow significantly. In 2021, there were approximately 4.2 million Australians aged 65 and over. By 2041, this number is projected to increase by 2 million, reaching around 6.2 million.

The Great Wealth Transfer

Alongside the demographic shift, Australia is set to experience the largest intergenerational wealth transfer in its history. The Baby Boomer generation, born between 1946 and 1964, holds approximately 53% of Australia’s national wealth. As this generation ages and eventually passes away, an estimated $3.5 trillion will be transferred to younger generations over the next 20 years.

 

Opportunities for Legal Professionals

The aging population and the impending wealth transfer present opportunities for business growth, with an increase in the need for services and advice in the areas of:

• Will drafting - Ensuring that clients’ wishes are clearly documented and legally binding.

• Powers of Attorney & Advance Care Directives - Drafting and advising on powers of attorney to ensure that clients’ financial and medical decisions are handled according to their wishes.

• Trusts - Creating trusts to manage and protect assets for future generations.
• Tax Planning - Advising on strategies to minimize tax liabilities on inherited wealth.
• Aged Care Agreements - Assisting clients with the legal aspects of entering aged care facilities, including contracts and financial arrangements.
• Guardianship Arrangements - Establishing legal guardianships for elderly clients who may become incapacitated.

• Succession Planning - Helping business owners plan for the transfer of their business to the next generation.

• Property Transfers - Facilitating the legal transfer of property ownership.
• Estate Sales - Assisting with the sale of estate properties and ensuring compliance with legal requirements.
• Property Disputes - Resolving disputes related to inherited property.

• Family Dispute Resolution - Mediating and resolving disputes that may arise over inheritance and succession issues.

With predicted growth in the elderly population over the next 20 years and increasing demand for professional services to support the transfer of wealth, now is the time to start preparing your practice to capitalise on this opportunity. 

Stepping up efforts to capture your fair share of growth through your Wills practice and making process improvements in your estate administration services can position your practice for success, enabling your team to cope with the higher workload, without dramatically increasing staff head count.

Great places to start are:

• Reviewing internal processes to identify bottlenecks and areas of frustration for your staff
• Surveying clients to identify their pain points
• Reviewing use of practice software and opportunities for automation
• Considering ways of working that build in regular client updates to manage expectations and reduce time spent dealing with client enquiries
• Providing tools and resources to clients that educate and help your clients achieve their objectives and contribute to making your job easier – The Essential Estate Summary is a great resource that does just that!

Australia’s aging population and the impending wealth transfer present both business challenges and opportunities for estate planning professionals. Those who plan ahead, monitor growth and seek to optimise administration efficiencies stand the most to gain, as legal professionals will play a crucial role in helping Australians navigate this transformative period.

 

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