'The largest intergenerational wealth transfer we've ever seen': Baby boomers set to pass on $175 billion a year in wills

A massive generational wealth transfer looms over the coming years, with baby boomers forecast to pass on about $175 billion annually via their wills.

A new Finder survey discovered that 63 per cent of respondents - almost two in three - planned to pass on money or assets upon their death.

Of those intending to leave a will, the overwhelming majority plan to leave the bulk to their children (63 per cent), while 22 per cent will prioritise their partner.

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Five per cent planned to leave their estate to extended family, and four per cent to their siblings.

The Productivity Commission has found that baby boomers will pass on about $175 billion a year in the decades ahead, as household wealth balloons against a backdrop of booming property prices and rising share markets.

Finder personal finance expert Sarah Megginson said wealth transfers were large and growing.

"Australia is on the cusp of the largest intergenerational wealth transfer we've ever seen. The decisions families make now will shape financial outcomes for decades," she said.

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Megginson said for many parents, leaving an inheritance is about giving their children a head start in an increasingly expensive world.

"The fact that children are the clear priority reflects rising living costs and housing affordability pressures, with many Australians wanting to ease that burden for the next generation," she said.

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"An inheritance can be life-changing, but it can also be fleeting if it's not managed wisely."

Megginson urged Australians to have a legally valid will in place to clearly set out how their assets should be divided, and to establish who would manage the estate.

"It's far better to make these choices early and communicate them clearly, so loved ones aren't left confused or disappointed down the track," she said.

"If you're likely to receive an inheritance, think carefully about how you can use that money wisely – not just for today, but in a way that creates long-term financial security for future generations."

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