A large inheritance can change what’s possible for your family. But it also raises questions that aren’t easy to answer, especially when tax is involved. For high-net-worth individuals, managing inherited wealth well means knowing where the traps are, what options you have, and how to protect the value for the long term.
It’s not just about compliance. It’s about making decisions that hold up five, ten, twenty years from now.
Why inheritance tax planning gets complicated fast
Most high-value estates don’t come in a tidy package. They include a mix of property, shares, superannuation, and often business interests. Each piece brings its own rules and risks. And with larger estates, mistakes tend to be more expensive.
Without good planning, families often face:
- Capital gains tax hits when inherited assets are sold
- Missed opportunities for tax-effective super contributions
- Income distributions that push beneficiaries into higher tax brackets
- Less flexibility when it comes time to pass wealth down again
These aren’t just technicalities. They shape how much of the inheritance you get to keep and how easily you can use it.
Key tax factors to get across early
Before moving or selling anything, it pays to understand:
Capital Gains Tax (CGT)
Assets are CGT-free at transfer, but selling later can trigger tax. The rules vary depending on how long the asset is held and whether it was the deceased’s main residence.
Investment income
Dividends, rent, and interest from inherited assets are still taxable. How you hold the assets affects how that tax is applied.
Superannuation
Not all super death benefits are tax-free. If the recipient isn’t a dependant under tax law, some or all of it may be taxed.
Trusts
Family and testamentary trusts can help distribute income more tax-effectively. But they need to be structured and managed properly.
Knowing these points early helps you avoid decisions that are hard to unwind later.
Advanced strategies to grow and protect your wealth
There’s no one-size-fits-all approach to inheritance, but the right tax structures can make a significant difference in how wealth is preserved, used, and passed on.
Set up a family trust
Family trusts are often the backbone of intergenerational wealth planning. They spread income across beneficiaries, help manage tax, and protect assets from outside risks like creditors or divorce.
Use SMSFs with purpose
In WA, many high-net-worth families use self-managed super funds to hold investments. SMSFs offer flexibility and tax advantages, but also require careful oversight. They’re not for everyone.
Separate assets with investment companies
An investment company can help ringfence family wealth, simplify tax, and make succession planning clearer. These are particularly useful when estates include large or complex holdings.
Include testamentary trusts in your will
These trusts can allow under-18s to be taxed at adult rates, which can mean big savings. They’re also useful for managing how and when beneficiaries access funds.
Think strategically about giving
Charitable structures, like private ancillary funds or foundations, let families align their values with tax planning. They also create legacy beyond the family balance sheet.
Why your accountant and financial planner need to talk
Smart tax planning isn’t something one person does in isolation. It works best when accountants and financial planners collaborate from the start. Your accountant might flag the need for a testamentary trust or suggest a better way to handle asset transfers. Your financial planner brings in the bigger picture, how those choices support your lifestyle, investment strategy, and long-term financial planning.
In Perth, this kind of joined-up advice is even more important. Many high-net-worth estates here are property-heavy, include family businesses, or involve SMSFs. Working with a financial advisor who understands WA tax rules and the nuances of local financial planning ensures your strategy is not just compliant, but practical and built around what matters most, something our team at Knight is designed to deliver.
Why high-net-worth families work with Knight
Knight brings together business financial advisors, accountants, and private wealth experts under one roof. That means no jumping between firms or trying to stitch together disconnected advice. Our team works as one and stays with you long term.
We help you:
- Navigate complex inheritance and tax planning
- Build forward-looking wealth strategies that evolve with you
- Avoid missteps that cost more than they save
- Give your family clarity and confidence at each stage
Every step of the way
At Knight, we work with high-net-worth individuals and families to protect and grow what matters most. Whether you’re inheriting Perth property, managing a family business, or planning for the next generation, we’ll help you move forward with confidence and clarity.
Want to explore what’s possible with a Perth financial advisor who gets the local landscape? Call us now or send a message, we’ll guide you from there.