What a financial adviser actually does in Australia
A financial adviser in Australia must hold an Australian Financial Services Licence (AFSL) or be an authorised representative of a licensee, and be registered with ASIC on the Financial Advisers Register. You can check any adviser’s registration on the ASIC MoneySmart adviser register.
In practice, the work covers three stages:
Before retirement (typically ages 50 to 65). Building your super, reducing tax through salary sacrifice and contribution strategies, setting up an investment mix that suits your timeline, and making sure you are not leaving money on the table in the final decade of work. We generally find this stage produces the largest measurable impact on retirement outcomes because contributions made now compound for 5 to 15 years before drawdown starts.
At retirement. Transitioning your super from accumulation to a retirement phase pension, working out how much you can draw down and for how long, understanding how your super interacts with the Age Pension means tests, and structuring your income so you are not paying more tax than necessary. Scott and Phil covered the transition strategy in detail in Episode 18 of the Wealthlab Podcast, including preservation age rules and the difference between a transition to retirement pension and a retirement phase account-based pension.
During retirement. Making sure your money lasts, adjusting your investment mix as you age, and adapting to changes in government rules (and there are always changes to government rules).
What a financial adviser generally does not do: write your Will, set up enduring powers of attorney, or draft the legal documents that govern how your assets transfer when you die. That work belongs to a solicitor with estate law expertise.
Our retirement planning and superannuation pages cover more on the adviser side of the work.
What an estate planner actually does
An estate planner is usually a solicitor who specialises in wills, powers of attorney, and estate structuring. Some financial advisers have overlapping knowledge in areas like super death benefits and binding nominations, but they cannot prepare the legal documents themselves.
The estate planner’s job is to make sure your wishes are legally documented and your wealth transfers to the right people, with as little tax and as few disputes as possible. Specifically, they handle:
- Your Will, including whether a testamentary trust makes sense for your family
- Enduring powers of attorney (who makes financial decisions if you lose capacity)
- Medical powers of attorney and advance care directives (who makes health decisions)
- Guardianship arrangements if minor children are involved
- The legal structure of how you own assets (joint tenancy vs tenants in common can change what happens to a property when one person dies)
- Superannuation death benefit nominations and whether they are binding or non-binding
- Blended family structures, testamentary discretionary trusts, and superannuation proceeds trusts
The last point on super nominations is where the two professionals’ work overlaps most significantly, and where the most expensive mistakes happen.
The super death benefit problem: why both matter together
Here is the point that catches a lot of Australians off guard. Your superannuation does not automatically form part of your estate. It is held in trust by your super fund, and the fund trustee decides who receives it, unless you have a valid, current binding death benefit nomination in place.
If you have a non-binding nomination, or no nomination at all, the trustee decides who receives your super. They will generally consider your dependants and legal personal representative, but they are not legally bound to follow your written wishes.
A binding nomination solves this, but it has rules. It generally lapses every three years for most funds (some funds now offer non-lapsing binding nominations), the nominees must be superannuation dependants or your legal personal representative, and if it has lapsed or is invalid, you are back to trustee discretion.
How super death benefits are taxed (2026 figures, source: ATO):
| Recipient | Tax on taxed element |
|---|---|
| Spouse or other superannuation dependant | Tax-free |
| Adult non-dependant child (direct from fund) | 15% + Medicare levy (up to 17%) |
| Adult non-dependant child (via estate) | 15%, no Medicare levy |
For a super balance of $600,000 left to two adult non-dependant children, that difference can add up to more than $50,000 in tax that either flows to the ATO or stays with the family, depending on how the estate plan is structured. This is where the two professionals need to be aligned.
Scott and Phil covered this in detail in Episode 12 of the Wealthlab Podcast, Super vs Inheritance. The episode walks through how super death benefits are taxed differently depending on the recipient, why blended families in particular need specialist advice, and the reality that many nominations lapse without the member realising.
As Phil put it on the episode: “There’s no right or wrong with estate planning. This is your money. It’s up to you.” The point is that this benefits from being thought through, with the paperwork actually in place, rather than assuming the fund will follow your written wishes.
When to see a financial adviser first
For most Australians in their 50s or early 60s, a financial adviser is generally the earlier of the two conversations to have. The biggest financial decisions of your retirement are happening right now: how much you are contributing to super, whether you are salary sacrificing efficiently, how to structure your drawdown, and whether you are on track for the retirement income you actually want.
The specific pattern we generally see in practice is that people who talk to an adviser at 55 or 58 have meaningfully more retirement income at 67 than people who leave it to their mid-60s. This is not about market timing. It is about the mechanical impact of five to ten additional years of contribution strategy, tax structuring, and asset allocation working together. Our post on how to increase your super before retirement covers the specific levers.
A good financial adviser will also flag where your estate plan needs attention, not to do the legal work, but to make sure it gets done. If your adviser has never raised the topic of your Will, powers of attorney, or binding nominations, that is worth noting.
When to see an estate planner
The strongest observation from years of practice: the best time to see an estate planner is before something forces you to. Common triggers are a serious illness diagnosis, the death of a spouse or parent, a divorce, receiving a significant inheritance, selling a business, or a new grandchild. But an estate plan set up in urgency, without thinking through the super nominations, family trust structures, and tax implications, often creates more problems than it solves.
The situations that generally warrant a conversation with an estate planner include:
- Your total super plus other assets is above $1 million and you have adult non-dependant children as your intended beneficiaries
- Your Will has not been updated in more than five years
- Your family situation has changed (marriage, divorce, step-children, new grandchildren)
- You own property with someone else and have not thought about how it is legally held
- Your super death benefit nomination has lapsed, or you are unsure whether it is binding
- You have a blended family situation
- You plan to leave assets outside your immediate family, including to charities
Testamentary trusts: worth knowing about
One topic that comes up often in estate planning conversations and that financial advisers can flag but not set up: the testamentary trust.
Rather than leaving assets directly to beneficiaries in your Will, a testamentary trust distributes assets through a trust established by the Will when you die. The two main advantages are:
Tax flexibility. Income from the trust can be split across beneficiaries at lower marginal rates, including to minor children at adult tax rates rather than the higher penalty rate that normally applies to unearned income of minors.
Asset protection. Assets held in a testamentary trust are generally harder to reach in a divorce settlement or bankruptcy of a beneficiary.
For larger estates, or where you have specific concerns about how beneficiaries will manage a lump sum, a testamentary trust is worth asking an estate planner about explicitly. A related structure specific to super is the superannuation proceeds trust, which can be set up in a Will to receive super death benefit payments and provide the same tax treatment as if paid directly to a dependant.
When both professionals fail to communicate: a common scenario
The risk of treating your financial plan and estate plan as two separate conversations that never meet is that things fall through the gap between them. Here is a scenario we see variations of regularly:
A financial adviser structures a couple’s super so the majority sits in one partner’s name for tax reasons. An estate planner writes a Will that leaves everything equally to three adult children. But because super sits outside the estate, the fund trustee pays the death benefit based on the binding nomination, which is three years old and still names an ex-partner from a previous marriage. Nothing illegal happened. Both professionals did their job in isolation. The outcome, however, is not what the family expected, and there is limited recourse to change it after the fact.
When the adviser and estate planner talk to each other, or at least when your adviser flags the interaction, this gap gets caught. It is one of the reasons we generally recommend clients keep both professionals in the loop when major changes happen: a marriage, a divorce, a birth, a house sale, or a change of super fund.
What each costs (rough guide)
Fees vary widely, but as a general sense of range:
Financial adviser. A comprehensive statement of advice for someone approaching retirement typically ranges from $3,500 to $8,000 depending on complexity. Ongoing service fees usually sit between $3,000 and $8,000 a year, or a percentage of assets under advice, depending on the firm’s model.
Estate planner. A basic Will and powers of attorney package for a couple usually runs $800 to $2,500. Adding a testamentary trust generally lifts the cost to $2,500 to $5,000 per Will. Complex blended-family or high-value estate structures can be higher.
These are ranges, not quotes. What matters more than absolute fee is what is included, and whether the advice you receive is worth several multiples of the cost over your remaining lifetime. Scott and Phil talked about spotting the difference between real advice and thin, product-focused conversations in Episode 23 of the podcast.
Use the free Wealthlab super calculator first
Before either of these professional conversations, it helps to know what you are working with. The free Wealthlab super calculator gives you a quick sense of your retirement income position. From there, you can have a more grounded conversation with a financial adviser about what strategies matter for you, and with an estate planner about what needs protecting.
Frequently asked questions
What is the difference between an estate planner and a financial adviser?
A financial adviser helps you build, manage, and draw down wealth during your lifetime, covering superannuation, investment, retirement income, and tax structuring. An estate planner, typically a solicitor, handles the legal side of what happens to your assets when you die or lose capacity, including your Will, powers of attorney, and superannuation death benefit nominations. They cover different ground, and for most Australians with super, property, or a family situation, both are worth having.
Do I need an estate planner if I already have a financial adviser?
Generally yes, if you want your estate properly protected. A financial adviser can advise on the financial side of estate planning, particularly super death benefit nominations. But they cannot draft your Will or set up enduring powers of attorney. Those documents require a solicitor with estate law experience. The two professionals complement each other rather than replacing one another.
Can a financial adviser do estate planning in Australia?
A financial adviser can advise on financial aspects that intersect with estate planning, particularly superannuation death benefits and binding nominations. But legal documents, including Wills, testamentary trusts, and powers of attorney, must be prepared by a solicitor or estate planning specialist. Some financial planning firms have both in-house. Most do not, so the two professionals need to communicate directly or through the client.
What happens to my super when I die if I don’t have a binding nomination?
If you do not have a valid binding death benefit nomination, the trustee of your super fund decides who receives your super. They will typically consider your superannuation dependants and your legal personal representative, but they are not bound by a non-binding or lapsed nomination. This means your super may not go where you intended. A binding nomination, kept current, gives you much more control. Most funds require the binding nomination to be renewed every three years, though some now offer non-lapsing binding nominations.
How is super taxed when it’s paid as a death benefit?
If paid to a superannuation dependant (spouse, child under 18, financial dependant, or interdependency relationship), a super death benefit is tax-free. If paid to a non-dependant (typically an adult child over 18), the taxable component is taxed at up to 17% (15% plus Medicare levy) when paid directly from the fund, or 15% when paid via the estate to the beneficiary. Untaxed elements (rarely present, mostly from insurance proceeds inside super) are taxed at higher rates.
Is estate planning only for wealthy Australians?
No. If you have super, own property, or have people who depend on you financially, estate planning matters. The stakes can actually be higher for ordinary families who cannot easily absorb a legal dispute or an unexpected tax bill. Blended families, people with adult children from previous relationships, and anyone with a significant super balance benefit from a proper estate plan regardless of overall net worth.
When should I start estate planning?
Ideally before something forces the conversation. The best time is when things are settled and there is no urgency, typically in your mid-50s at the latest, or earlier if you have children. Major life events that generally warrant a review include marriage, divorce, a new grandchild, a significant change in assets, or the death of a spouse or partner. Wills and nominations are often reviewed every three to five years even without a triggering event, because super nominations lapse and laws change.
What is a testamentary trust and do I need one?
A testamentary trust is a trust created by your Will that holds and distributes assets to your beneficiaries after you die, rather than transferring the assets directly. The two main advantages are tax flexibility (particularly income splitting to minor children at adult tax rates) and asset protection (assets are generally harder to reach in a divorce or bankruptcy of a beneficiary). Testamentary trusts are worth discussing with an estate planner if you have significant assets, adult children with complex financial situations, or minor children as intended beneficiaries.
Do financial advisers and estate planners work together in Australia?
Sometimes, but not always. Some financial planning firms have solicitors on staff or a formal referral relationship with an estate planning practice. Others work independently and expect the client to coordinate between them. It is worth asking your financial adviser directly whether they have an estate planning relationship, and asking your estate planner whether they are happy to speak with your adviser about the super nomination and beneficiary strategy specifically.
Your next step
If you are approaching retirement and have not had either conversation yet, starting with a financial adviser is generally the sensible first step. A good adviser will map out your super and retirement income position, and flag where your estate plan needs professional attention.
If you’d like to talk through your own situation, book a free chat with the Wealthlab team. No jargon, no pressure,or take the free Wealthlab retirement quiz .
