The findings arrive as the advice sector continues to prepare for the projected $5.4 trillion that will change hands nationally over the next two decades.
According to the study, 96 per cent of high-net-worth investors have already provided financial support to loved ones. Education assistance remains the most common form of support (58 per cent), followed by ongoing financial help (56 per cent), cash gifts (49 per cent), and contributions to major life events (48 per cent). Around a third have gifted or transferred property.
The sums involved are substantial. Nearly one in three respondents reported giving between $250,000 and $500,000 to family members, while 26 per cent have provided between $500,000 and $1 million. Looking forward, 96 per cent intend to pass on assets, and 85 per cent expect to transfer at least some of their wealth while still alive.
Despite high levels of awareness – 89 per cent say they understand wills, 80 per cent trusts and 81 per cent self-managed super funds – formal planning remains inconsistent. Only 41 per cent have documented a transfer plan, and just 63 per cent have worked with an adviser to mitigate tax on wealth transfers.
Praemium chief strategy officer Denis Orrock said the findings reflect a clear shift in behaviour and expectations among wealthy families.
“We’re seeing families take a much more active role in supporting the next generation, with significant value being transferred well before inheritance,” he said.
“But while the intention is strong, many haven’t formalised their plans. That’s where advisers can add real value.”
Orrock noted that advisers are well positioned to help clients navigate both the technical and interpersonal aspects of gifting.
“Advisers can play a key role in helping clients formalise their plans, manage tax, and involve beneficiaries in the conversation earl.
“They can also help address some of the challenges investors face with transferring wealth now and in the future. With most high-net-worth investors already supporting loved ones in substantial ways, expert, personalised advice is essential.”
The research lands alongside growing concern around financial capability among recipients. Iress and Deloitte’s Big Lift report found that 59 per cent of Australians have low financial literacy and only 17 per cent hold an advanced level. Nearly half find financial concepts “too complicated”, raising questions about whether beneficiaries are prepared for the magnitude of wealth set to flow their way.
Deloitte modelling suggests improved financial capability could add nearly $123,000 to average household wealth – equivalent to $1.2 trillion nationally. With rising living costs, increased scam activity and trillions forecast to be inherited by 2050, the advice community is being urged to play a larger role in education and preparedness.
For advisers, the opportunity is two-fold: supporting high-net-worth families to structure, document and tax-optimise early giving strategies, and helping future beneficiaries build the financial literacy needed to manage wealth responsibly.
Orrock said Praemium aims to support advisers as these conversations become more frequent and more complex.
“We want advisers and their clients to make these decisions with clarity, confidence and care,” he said.
As early gifting becomes increasingly mainstream, the research reinforces that advisers will be central not only to managing wealth transfers, but also to ensuring families approach them with structure, communication and long-term intent.
