The evolving complexities of modern day families

According to 2021 Census data, 12% of Australian couple families with dependant children are either step- or blended families. This comprises 8% step families and 4% blended families. The ABS considers a “blended family” to be a couple family with at least one (natural or adopted) child of both partners and at least one step-child of either partner. A “step-family” is defined as a couple family with at least one step-child of either partner and without any natural or adopted children of both partners. ¹

Grandparent-led families are also prevalent, with the majority being either single-grandparent or couple-grandparent families with dependant grandchildren, rather than non-dependant grandchildren.¹

Furthermore, divorce rates are on the rise. Nearly 200,000 Australians filed for divorce between 2020 and 2022, the highest number recorded in more than a decade.²

Why complex families require smarter estate planning strategies

As family structures grow increasingly complex, the need to rethink wealth transfer strategies becomes even more crucial. There have been reports of the complexities of (blended) families being the catalyst behind an 80% surge in family disputes over wills and estates over the past decade.³

And just to add to the complexities, a 2022 ruling by the Victorian Supreme Court determined that parents were under a “moral duty” to consider the financial well-being of children from previous relationships, regardless of whether those children, who may even later contest their estate, didn’t live with them.⁴

Investment bonds are emerging as a powerful estate planning tool

Generation Life’s investment bonds provide a flexible and tax-effective alternative for wealth transfers to overcome these core challenges and can help your clients achieve their generational wealth goals by providing:

• More certainty – as a non-estate asset, it can sit outside the will to not form part of the estate.
• More control – provides the ability to transfer ownership tax-free, before or after death with options on how beneficiaries can access funds.
• More flexibility – the flexibility to control when and how nominated beneficiaries receive inheritances with the added layer of protection in the event of bankruptcy of the investment bond owner.

Discover investment bonds

The New Age of Advice

How to prepare your advice practice for the intergenerational wealth transfer

Written by financial advisers, for financial advisers

In collaboration with Ensombl, The New Age of Advice guide has been developed to help you prepare your advice practice for the great intergenerational wealth transfer.

This guide also provides insights from seven leading financial advisers who have successfully navigated the best approaches to meaningful conversations and engaging multiple generations in their clients’ wealth discussions.

Download your New Age of Advice guide today

We’re here to help

At Generation Life, we know that finding the right investment partner is important to your clients’ future success.

We have a specialist and technical team that can run sample scenarios to help you assist your clients in transferring their wealth with flexibility, control and certainty.

Contact one of our technical team members at technical@genlife.com.au about running scenarios for you today.

_{1. Australian Institute of Family Studies: https://aifs.gov.au/research/facts-and-figures/families-and-family-composition. August 2023 accessed 30 April 2025.}

_{2. Sydney Morning Herald, ‘Divorce applications up as marriages hit the rocks’, https://www.smh.com.au/national/divorce-20220628-p5axco.html 3 July 2022 accessed on 15 April 2025.}

_{3. Australian Financial Review, ‘Big increase in inheritance feuds among blended families’, https://www.afr.com/wealth/personal-finance/big-increase-in-inheritance-feuds-among-blended-families-20191212-p53jbs 27 December 2019 accessed on 15 April 2025.}

_{4. Australian Financial Review, ‘Court enforces rights of stepchildren in blended families’ https://www.afr.com/wealth/personal-finance/court-enforces-rights-of-stepchildren-in-blended-families-20220311-p5a3u5, 16 March 2022, accessed on 15 April 2025.}

_Disclaimer

_{Generation Life Limited AFSL 225408 ABN 68 092 843 902 (Generation Life) is the product issuer. The information is general in nature and does not consider the investment objectives, financial situation or needs of any person. Generation Life excludes, to the maximum extent permitted by law, any liability (including negligence) that might arise from this information or any reliance on it. Past performance is not an indication of future performance. The product’s Product Disclosure Statement (PDS) and Target Market Determination are available at http://genlife.com.au and should be considered in deciding whether to acquire, hold or dispose of the product. Other than in relation to Generation Life’s product, information provided is factual information only and is not intended to imply any recommendation or opinion about superannuation products or superannuation investment.}