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This article is general information only and does not constitute legal or financial advice. For your specific situation, consult a qualified solicitor or financial adviser.
Over the next 25 years, New Zealand is expected to see between $1 trillion and $1.6 trillion in assets shift from baby boomers to their children and grandchildren. That’s the largest intergenerational movement of wealth in the country’s history, and it’s already underway. But here’s the catch: most families aren’t ready for it. The money, mostly tied up in property, will arrive at a time when many recipients are in their sixties themselves, and a significant portion could be lost to aged care costs, poor planning, or family conflict. Here’s what you actually need to know.
This isn’t just about the wealthy. The figures are aggregates, and they hide a more complicated reality. Many boomers are spending their own money on travel and healthcare, and a large portion of the transfer will go toward funding aged care rather than building the next generation’s wealth. If you’re expecting a life-changing inheritance, the timing and amount may surprise you. Understanding how wealth moves between generations is the first step toward making sure it doesn’t disappear before it reaches the people you care about.
What the Great Wealth Transfer Means for Your Family
What I tend to notice is that people assume the transfer will happen smoothly, like a baton pass in a relay race. In reality, it’s more like a complicated handover where the baton might get dropped, lost, or handed to the wrong person. The key isn’t just having assets — it’s having a plan for how they move. Building lasting value across generations requires more than a will.
Why the Timing and Amount Might Disappoint You
New Zealand households hold roughly $2.4 trillion in assets, with residential property making up close to half. Those born before 1966 hold about 60 percent of total individual net worth. But here’s what the headline numbers don’t tell you: the $1.6 trillion figure is an aggregate. It says nothing about how much lands in any particular lap.
Australian Productivity Commission data shows most inheritances arrive when recipients are in their fifties and sixties. New Zealand demographics are similar. If you’re forty-five today and factoring a future inheritance into your financial plans, the timing may disappoint you. Most recipients are in their sixties or seventies by the time wealth transfers. That’s not exactly the age when you’re trying to get on the property ladder.
Meanwhile, boomers are spending their own money. A 2024 Northwestern Mutual survey found only about 22 percent of baby boomers expect to leave an inheritance. A Charles Schwab survey found nearly 45 percent would rather enjoy their money. And 40 percent of those over 65 rely entirely on NZ Super, with a further 20 percent having only a small supplement. KiwiSaver average balances at ages 61 to 65 sit at roughly $69,000. The picture is more mixed than the trillion-dollar figure suggests.
This is where the gap between expectation and reality widens. Many families assume the family home will pass intact to the next generation. But if one parent needs residential care, that house may need to be sold to fund it. The wealth transfer becomes a wealth transfer to the aged care sector, not to the kids. Adapting to these financial realities requires honest conversations early.
Where Families Go Wrong With Wealth Transfer Planning
No will means no control
Only 55% of New Zealand adults have a will. Without one, your estate is distributed according to legislation, not your wishes. That means the government decides who gets what, and it may not align with your intentions. If you have a blended family, a business, or specific wishes about who inherits what, dying without a will creates a legal mess that can take years and thousands of dollars to sort out. The fix is straightforward: get a will, and update it after major life changes like marriage, divorce, or the birth of a child.
Family disputes over inheritance are rising
Inheritance-related disputes are increasing in New Zealand, often tearing families apart. When there’s no clear plan, siblings argue over who gets the house, who gets the cash, and who gets the family heirlooms. These disputes can drain the estate through legal fees and leave relationships damaged beyond repair. What I’ve seen is that the families who talk about money openly before anyone dies tend to avoid the worst of this. A simple family meeting to discuss intentions can prevent years of conflict.
Wealth that doesn’t last
A 20-year study of 3,200 families by the Williams Group found 70 percent of wealthy families lose their wealth by the second generation, and 90 percent by the third. The main reason isn’t poor investment returns — it’s lack of financial literacy and communication. Heirs who aren’t prepared to manage large sums of money or property often make poor decisions. A financial literacy guide for the whole family can help bridge that knowledge gap before the money arrives.
Over-reliance on property creates liquidity problems
Estates tied up in property can leave beneficiaries with limited cash and potential tax headaches. If the only asset is the family home, and multiple siblings inherit it, someone has to buy the others out or the house gets sold. That can force a sale at a bad time or create tension among siblings who have different ideas about what to do. Diversifying assets and having some liquid savings can make the transition smoother.
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| Risk Factor | Impact on Estate | What to Do About It |
|---|---|---|
| No will | Estate distributed by law, not your wishes | Get a will and update it regularly |
| Aged care costs | $73k–$110k+ per year can deplete assets | Model potential care costs in your plan |
| Family disputes | Legal fees drain estate, relationships suffer | Hold family conversations early |
| Low financial literacy | 70% of wealth lost by second generation | Invest in financial education for heirs |
How to Prepare Your Family for the Wealth Transfer
Start the conversation early
The single most important step is talking about money with your family. Many families avoid this topic entirely, treating it as taboo or waiting until a crisis forces the conversation. But by then, it’s often too late to plan effectively. Start by discussing what matters to you, what you’re planning, and why. This isn’t about revealing every detail of your finances — it’s about setting expectations and reducing the chance of surprises. A family meeting once a year can keep everyone on the same page.
Get a will and update it regularly
A will is the foundation of any estate plan. Without one, you lose control over who gets what. Major life changes — marriage, divorce, the birth of a child, the death of a beneficiary — should trigger a review of your will. Many people write a will and then forget about it for decades, which can render it outdated or even invalid. A solicitor can help you draft a will that reflects your current situation and wishes. If you need guidance on the legal side, consulting a business law specialist can clarify your options.
Use trusts and enduring powers of attorney
Trusts can protect vulnerable beneficiaries, ensure continuity, and provide tax advantages in some situations. An enduring power of attorney allows someone you trust to manage your affairs if you lose capacity. These tools are especially important if you have a family business, a property portfolio, or beneficiaries who may not be able to manage large sums of money on their own. A lawyer can help you decide whether a trust is appropriate for your situation.
Invest in financial education for your kids
The best inheritance may not be money — it may be knowledge. Teaching your children about budgeting, investing, and managing property prepares them to handle whatever they receive. This doesn’t require formal lessons. Simple conversations about how you manage money, why you make certain decisions, and what you’ve learned from mistakes can be more valuable than any textbook. A personal finance workbook for younger family members can make these lessons more concrete.
Define your legacy beyond money
The Great Wealth Transfer isn’t just about passing on assets. It’s about passing on values, knowledge, and a sense of purpose. Think about what impact you want to make, not just on your family but on your community. Only 1.3% of inheritances currently go to charity. If giving back is important to you, including a charitable bequest in your will can ensure your values live on. This doesn’t have to be a large amount — even a small percentage can make a difference.
Frequently Asked Questions About the Great Wealth Transfer
When will the Great Wealth Transfer actually happen? ▾
How much of the transfer will go to aged care? ▾
What happens if someone dies without a will in New Zealand? ▾
How can I avoid family disputes over inheritance? ▾
Should I include a charitable gift in my will? ▾
What’s the best way to prepare my children to inherit wealth? ▾
The Real Opportunity Lies in Planning, Not Just Passing On Assets
The Great Wealth Transfer is already reshaping New Zealand’s economy and families. But the size of the transfer doesn’t guarantee its success. Without wills, conversations, and financial education, much of that wealth will be lost to aged care costs, family disputes, and poor decision-making. The families who prepare — who talk openly, plan carefully, and invest in knowledge — will be the ones who turn this historic shift into lasting security for the next generation. Start the conversation now, while there’s still time to shape the outcome.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified solicitor or financial adviser.
If this was useful, you might also want to read Beyond Profit: Exploring the Rise of Socially Responsible Businesses in NZ.
Sources and Further Reading
Māori Business Principles: Can They Transform Modern NZ Enterprises? — Explores how traditional values can inform modern wealth stewardship and intergenerational thinking.
Grayson Clements (2025). What is the Great Wealth Transfer and Will You Be Ready. 🔗
Interest.co.nz (2026). Joseph Darby examines the thorny issues of intergenerational wealth transfer. 🔗
NZ Herald (2025). How New Zealand’s Great Wealth Transfer Will Influence Giving and Investment. 🔗
