Broking industry set for shake-up from $3.5tn wealth transfer

In a study of high-net-worth (HNW) individuals, Wilsons Advisory found that family engagement is lagging, with just 32 per cent of HNW individuals fully involving relatives in wealth transfer discussions, risking future disputes.

The research also found a gender gap, with men expressing greater confidence in their wealth transfer plans (87 per cent versus 79 per cent for women), while being more likely to seek advice (81 per cent compared to 69 per cent).

Despite a clear gap in how prepared consumers are for wealth transfer planning, Millennials and Gen Zers are driving demand for clearer wealth transfer plans: 80 per cent view it as a priority.

Commenting on what is driving the trend, Wilsons Advisory head of private wealth, Casimir Skillecorn, said: “Unlike previous generations who built wealth during periods of economic growth, younger Australians are more reliant on inheritance as a financial safety net.”

How can brokers benefit?

Speaking to The Adviser, Alana Siebel, a finance broker at boutique financial planning and brokerage business My Finance Matters, said clients using inherited wealth are entering the property market much earlier than they could through traditional savings.

“In many cases, they’re not just buying a home – they’re using inheritance to invest in multiple properties and build wealth faster. With larger deposits, they benefit from lower loan to value ratios (LVR) and more competitive interest rates,” she added.

“Brokers are increasingly expected to understand the bigger picture, offering guidance that [takes into account] multi-generational financial planning, including tax and estate considerations.”

Natalie Denyer, mortgage broker at Birdie Wealth, told The Adviser that she had noticed clients’ behaviours change due to wealth transfers.

“I have helped many clients who have received an inheritance. If they are first home buyers usually it means that instead of buying a unit in Sydney, they can avoid that stepping stone property and go straight for a free-standing house,” she said.

“I have also had older clients with teenage children and smaller loans say they prefer not to pay extra towards their home loan, knowing that they have a big inheritance coming, so they prefer to live comfortably and even travel.”

Salvador Huetos, partner at Lydian Private, a mortgage brokerage focused on HNW individuals, also noted that he had seen a shift.

“At the high-net-worth end, we’re seeing younger generations become more actively involved in wealth conversations earlier, often with parents or advisers initiating discussions around tax structures, trusts, and lending strategies,” Huetos said.

“There’s also a shift in expectations: Gen X and Millennials aren’t just passive recipients, they’re financially literate, advice-seeking, and more open to leveraging inheritance or family support as part of a broader investment strategy, whether that’s property, business ventures, or portfolio diversification.

“We do a lot of work with wealth advisers and form strategies that align and add value to the relationship between generations.”

Commenting on how brokers could aid clients in preparing for wealth transfer, Denyer said that collaborating with other advisers was crucial.

“I always refer clients to a financial planner that I trust will look after our clients and give them lots of options and run figures on different scenarios for them,” she said.

“Earlier this year my Dad passed away, we lost Mum 13 years ago, so I know the importance of making the correct choices because Mum and Dad worked so hard to leave my sisters and I with this money and I want to make sure I am in a position to do the same for our kids.”

When asked how brokers can best position themselves to take advantage of the opportunity, Huetos told The Adviser that the key is to move upstream and act as a “connector”.

He said: “Brokers who understand how to navigate family dynamics, legacy goals, and intergenerational tax considerations will be in high demand.

“It’s less about product and rate but more about positioning: being in the room early, earning trust across generations, and curating a network of specialist partners to support the full wealth transfer lifecycle. At Lydian Private, we’re already seeing clients bring their adult children into strategy sessions, a clear signal that the opportunity is here now.”

What a wealth shift means for brokers

When asked what he expected to change for brokers over the next five to 10 years, Josh Ruthnaswamy, another partner at Lydian Private, said: “We expect the advice ecosystem to become more integrated, with brokers increasingly working alongside accountants, financial advisers, and wealth managers.

“As Gen Xers retire and pass on wealth, lending conversations will become more strategic, i.e. focused not just on capacity but on legacy, risk management, and intergenerational planning. This will elevate the broker’s role beyond transaction execution into long-term client stewardship.”

Siebel noted that borrowers’ expectations will change as they inherit wealth

“We’ll see a shift toward earlier investing, downsizing, and helping their children into the property market – especially as it becomes harder for younger generations to do it alone,” she said.

“Gen X tends to have strong financial literacy, so they’ll expect tax-efficient, tech-driven solutions and personalised advice. We’ll likely see more use of equity release, self-managed super fund (SMSF) lending, and strategic debt planning. Financial offers will need to be digital, integrated, and family-focused.”

Denyer also expects changes to brokers’ roles, as borrowing behaviours evolve.

She said: “I think we will see more investment property purchases, including SMSF purchases.

“Potentially higher balances in offset [accounts], as most people want to keep their loan and park their inheritance money in the offset rather than closing it off, as they like to have access to this money.”

Looking ahead, Siebel reflected that brokers who are proactive stand to gain.

“By collaborating with financial planners, estate lawyers and accountants, and specialising in areas like SMSF lending and guarantor structures, brokers can position themselves as essential partners in long-term, multi-generational financial strategies,” Siebel said.

[Related: Reverse mortgage ‘minefield’ leaves retirees vulnerable to costly mistakes]