The Wealth Advisory Newsletter

Spring is a season of renewal—the perfect time to reset, refresh, and refocus on your financial well-being. In this edition, we explore why estate planning matters more than ever, share updates on the deeming rate increase, and finish with some exciting team news.

Estate Planning: Why It Matters More Than Ever

Australia is on the brink of the largest intergenerational wealth transfer in history. Trillions of dollars will soon pass from older Australians to younger generations—at a time when many are grappling with housing affordability and the rising cost of living.

For many families, inheritance is no longer just a bonus—it’s becoming a lifeline. But with this shift comes complexity, emotion, and unfortunately, conflict.

The Growing Risk of Contested Wills

Even households earning over $200,000 a year are feeling financial strain. This means more people—regardless of income—may feel compelled to challenge a Will. Blended families, multiple relationships, and evolving family structures add further layers of risk.

Contested Wills often stem not from entitlement, but from feelings of exclusion or broken promises. And while some claims fail, many succeed—each case judged on its own facts. Legal costs can easily exceed $45,000 before mediation and climb past $100,000 if the matter proceeds to court. For smaller estates, this can significantly erode what’s left to inherit.

The Numbers Speak for Themselves

• Family provision claims in NSW rose from 880 in 2020 to 996 in 2024

• Contentious probate filings jumped from 291 to 464 in the same period

The trend is clear—and as financial pressures mount, the likelihood of disputes is only set to increase.

How to Protect Your Estate

As your adviser, I want to help you safeguard your legacy and reduce the risk of conflict. Key steps include:

• Get a professionally drafted Will: It should clearly reflect your wishes and align with your financial plan.

• Talk to your family: Open, honest conversations can prevent misunderstandings and manage expectations.

• Update your plan with life changes: Divorce, remarriage, births, or financial shifts should always trigger a review.

• Align estate and financial planning: Major financial decisions should be mirrored in your Will.

Wills aren’t foolproof, but they remain one of the most effective tools to protect your assets and ensure your wishes are respected.

Final Thoughts

Inheritance is fast becoming a defining issue for Australian families. With the right preparation, you can avoid costly disputes and ensure your estate supports the people and causes you care about most.

At The Wealth Advisory, we have built relationships with legal professionals and work closely with H+A Legal (www.halegal.com.au), specialists in Estate Planning who help families plan ahead, protect their wishes, and reduce the risk of disputes. Together, we can make sure your legacy is passed on the way you intend—clear, strong, and with minimal risk of conflict. If you’d like support, we’d be glad to introduce you to their team.

Deeming Rate Increase – What It Means for You

From 20 September, deeming rates will rise for the first time since the Covid-era freeze. This change may affect clients whose payments and benefits are determined by the income test, such as:

• Age Pension and other income-tested payments

• Commonwealth Seniors Health Card (CSHC) holders

• Low Income Health Care Card holders

• Some aged care clients (where fees are means-tested)

While the increases are relatively small, they may reduce entitlements or increase aged care fees for some clients. For example, a single age pensioner with modest savings could see their fortnightly pension reduce by around $25 under the new rules.

This is part of the Government’s plan to gradually return deeming rates to pre-pandemic levels, with future increases expected in line with pension indexation dates.

Team Update

We’re excited to share some wonderful news. Elise and Hayden welcomed baby Archie on 8th May! Big brother Toby has now happily accepted that Archie is here to stay, and the whole family is doing well.

We’re here for you

If any of these topics raise questions for you, or if you’d like to review your financial plan before the end of the year, please don’t hesitate to reach out.

Warm regards,
The Wealth Advisory Group
Helping Australians create clarity, confidence, and enduring prosperity.