Opportunities for Successful Transition
Gunderson Briggs is experienced in providing financial and accounting guidance and advice to legal firms and their clients in the planning, structuring, implementing, and administering of Estates.
Over the next two decades, as the world experiences the largest intergenerational wealth transfer in history, the requirements for a successful family wealth transition will be increasingly complex and require the very best expertise.
At Gunderson Briggs, we have a large firm background, working in a smaller firm environment. We have Board experience from public companies to large charities, school councils and sporting committees. We have travelled and dealt with business around the world.
We make it our business to know about our clients’ affairs and issues. Confidentiality, intimacy and careful collaboration are important values to our firm. We get involved.
Opportunities for Successful Transition
Research by the Grattan Institute identifies that net wealth has grown strongly among older households. Households headed by people aged over 75 now have an average of A$1million in assets, up from A$400,000 for a household headed by a person of the same age in 1994.
But many are much larger. About 20% are worth more than A$1million, and 7% are more than A$2 million. Property is the largest component, accounting for about half of the average value.
Average inheritances are growing about 2 percentage points faster than inflation each year. Most retirees don’t draw down on their savings.
The transition of wealth to the next generation, a longing to leave a legacy, a desire to express altruism; the key is to have set out a clear statement of wishes. We work with the legal professional to bring the wishes into being, giving clarity for the transition, as a window of opportunity for the transferor to make a statement.
Family businesses are often at the centre of transitioning wealth. This can increase complexity and demands for expertise and careful consulting capability to manage expectations, financial results, and the ongoing needs of all members across the extended family.
“No matter what you do, it will always turn up in the Income Statement or the Balance Sheet”
Examples of some of our experiences are as follows:
Asset investigation for dysfunctional family, keeping executor to task and communication with all parties legal representation;
Implementation of intergenerational control structure after divorce for high net-worth individual; and
Family success, internal structure, constitution and family office for ultra-high net-worth individual.
Conflict in the family endeavors will exist because of the innate differences between a family and a business. This is illustrated below:
Considering the Opportunities
We believe that the economics involved in intergenerational wealth transfer will challenge many beliefs and practices in our Australian society.
At Gunderson Briggs, our mantra is to “Measure the right things right”. This applies to business as well as family arrangements.
Our role is to assist the legal professional to deliver the best financial outcomes and certainty to their family clients.