In denial over estate planning

More than a third of Australians have not considered estate planning or the transfer of their wealth to the next generation.

In a study conducted by AC Nielsen on behalf of investment group IOOF, 37 per cent of respondents had not even considered the issue. A further four per cent said estate planning was something their friends and family would be able to arrange.

But according to IOOF’s general manager of investor solutions, Renato Moa, this reflects a worrying trend among Australia’s ageing population.

“Estate planning is not simply about transferring your wealth to the next generation,” he said.

“It also 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.”

Mr Mota said that although a will was sufficient for previous generations, an increase in the number of joint assets, trusts and super funds means a more holistic approach is required.

“As people get older, they must take a proper look at all their financial needs, from insurance and superannuation to wills and investment bonds,” he said.

The study also found that eight per cent of people are 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,” Mr Mota said.

“Such disputes can have a significant financial and emotional impact on all involved, and potentially cause irreparable damage to loved ones left behind.”