Generational Wealth Transfer in NZ – $1 Trillion at Stake

Over the next few decades, New Zealand is set to experience the largest intergenerational transfers of wealth in its history. Estimates suggest over $1 trillion worth of assets from NZ individuals will be passed from the Baby Boomer generation to their children and grandchildren by 2050.

This monumental shift presents both opportunities and challenges. Without proper planning, families risk disputes, inefficient tax outcomes, and lost legacy potential. But with the right advice and proactive conversations, it can be a catalyst for strengthening relationships, ensuring long-term security of assets and family legacies.

Why this matters in New Zealand
In New Zealand, over 60% of wealth is held in property – much of which is tied up in the family home, rental investments, and family farms. This creates complexity in succession, especially where families are spread across multiple locations or when properties are owned by trusts.

Add to this the fact that many older trusts are non-compliant with the Trusts Act 2019, exposing families to legal and financial risk.

Compounding this is the fact that a significant number of small- to mid-sized New Zealand businesses are family-owned – particularly in trades, agriculture, hospitality and retail – and lack a formal succession plan. In many cases, these businesses are the primary income and wealth-building asset for a family, yet conversations about transition or sale are often left too late.

This transfer is not just about numbers, it’s about families, businesses, and values. A will is often the cornerstone of ensuring wealth is preserved and passed on in a way that aligns with both financial and personal goals.

Beyond inheritance: values and legacies
Many families are beginning to view wills not just as financial tools but as vehicles for legacy. Testamentary charitable gifts, for instance, are becoming more common. Charities Services NZ notes a growing reliance on bequests to sustain charitable work nationwide.

The rise of “family offices” in New Zealand also reflects the growing desire to combine professional management with family governance, ensuring wealth is preserved and grown across generations.

Take Action
Acting now is essential – start by:

• reviewing your estate planning documents (wills and enduring powers of attorney) regularly (we recommend every three (3) to five (5) years).
• reviewing your trusts at your annual meetings or consider whether your trust is still appropriate under the new legislation.
• opening intergenerational conversations early, so there are no surprises, appropriate support can be offered, and proper succession planning, including considering bringing the next generation on board with business or farming operations early on.
• involving professionals – legal, accounting, and financial – to create a co-ordinated, tax-efficient, and values-aligned plan.

Risks without planning
Without thoughtful estate planning, inheritances risk being:

• consumed by family disputes.
• vulnerable to claims under the Property (Relationships) Act or Family Protection Act.
• undermined by poor tax structuring or inadequate trust planning.
• lost to poor financial management by heirs.
•  a disruption to business continuity or a cause for erosion of the value of a business.

Final Thought
The upcoming generational wealth transfer represents a once-in-a-lifetime opportunity for New Zealand families. A well-structured estate and asset planning arrangement is the starting point for ensuring that wealth is preserved, disputes are avoided, and values are carried forward.

The experienced team at MoranLaw can help you prepare your estate and asset planning arrangements. Get in touch today.