As Australia’s population ages, accountants are encountering a delicate but increasingly common challenge: how to manage wealth and superannuation transitions when a client’s cognitive abilities begin to decline.
It’s a sensitive topic—but ignoring it can lead to major legal, financial, and emotional complications for clients and their families.
Recognising the Early Signs
Recognising the Early SignsCognitive decline doesn’t happen overnight. Early warning signs might include:
- Difficulty understanding once-familiar financial concepts
- Increased confusion about simple transactions
- Hesitation or forgetfulness about long-term planning decisions
Being attuned to these changes allows you to act in the client’s best interest while they still have capacity.
Why Planning Early is Critical
Once cognitive impairment is significant, a client may no longer have the legal capacity to update wills, change superannuation nominations, or alter financial structures. Without proactive planning:
- Superannuation may not go to intended beneficiaries
- Tax consequences can be harsher
- Family disputes become more likely
Practical Steps for Accountants
- Encourage Financial Assistance: TAG is uniquely positioned to support you in guiding your clients through this significant milestone. By working side by side, we can help ensure their financial affairs are managed and transitioned smoothly, securing their financial future.
- Have Conversations Sooner: Embed succession and transition discussions into regular reviews, not just as crisis reactions.
- Check Superannuation Beneficiary Nominations: Are they valid, binding, and aligned with the client’s wishes?
- Encourage Enduring Powers of Attorney: Clients should have trusted decision-makers appointed early.
- Document Capacity Assessments When Needed: Engage medical professionals if there are doubts.
Mastering Compassionate Guidance
Helping clients and families through cognitive decline transitions isn’t just about technical compliance—it’s about providing compassionate, proactive support when it matters most.
Want to learn how to handle these scenarios confidently?
Attend the 2025 TAG Super and Tax Strategies Day and gain practical strategies for managing wealth transitions during sensitive times.
If you have any questions or would like support in improving your client outcomes without the overwhelm, please contact us at super@tagfinancial.com.au or call 03 9886 0800.
Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2025. Please do not reproduce without the expressed written consent of the author.