Managing Across Generations: Lessons from Australia’s Leading Families

By Siddharth Soin

For ultra-high-net-worth families, the management of wealth is less about investment returns but the protection of one’s legacy, the building of resilience, and seamless transition between generations. The reorganization of the Hains family’s wealth in the wake of David Hains’s death presents a case study in how considered tax planning and structuring can shape the future of family wealth. 

The Hains Family Legacy: A Case Study in Family Management 

For background, David Hains was the founder of Portland House Group, built one of Australia’s most successful private investment firms. His empire spanned equities, fixed income, property, and managed funds, with his wealth estimated at over $2 billion at the time of his passing in 2023. Beyond finance, he was a prominent figure in Australian horse breeding, producing champions such as Kingston Town and Kingston Rule. 

After his death, the family did some proactive things in transitioning the wealth in a smooth and tax-efficient manner. It has preserved the financial legacy by carefully going through taxes, using well-structured trusts, and appropriate estate planning. A newly established family office allowed the family to retain control over their assets with full compliance related to changing tax laws. The Hains family’s approach underscores the importance of succession planning, family governance, and tax-efficient structuring—key pillars for any family looking to secure wealth for future generations. 

Key Insights from the Hains and Other UHNW Families 

1. Proactive Succession Planning  

  • The Hains family’s transition highlights the importance of planning early. Addressing estate planning and tax structuring before a significant event ensures a smoother transition with minimal tax leakage. 

2. Trust Structures & Family Governance   

  • Establishing family constitutions, advisory boards, and solid governance structures allows clarity and continuity. Well-defined roles for each family member reduce conflicts and align decision-making process with long-term goals. .

3. Navigating Tax Complexity  

  • The Australian Tax Office (ATO) continuously develops the guidelines over trusts and wealth transfers. This has led to the development of the Modernising Trust Administration System (MTAS) effective July 2024. This requires family offices to consider the new trust reporting requirements. Understand CGT implications, tax exemptions, and income distribution rules. 
  • The Top 500 Assurance program under the Tax Avoidance Taskforce which are in-depth reviews of family and business transactions with a focus on ensuring there is a documented governance framework established and adhered to.

4. Strategic Philanthropy  

  • A number of Ultra-high net worth families, including the Hains, incorporate philanthropy into their wealth management. Establishing Private Ancillary Funds (PAFs) could be established to optimise tax efficiency while ensuring long-term charitable impact. 

5. Cross-Border Considerations   

  • With family members residing in multiple jurisdictions, it is critical to have global tax structuring: with obtaining DTA’s to avoid double taxation and extensive trust structuring to keep them within the ambit of International Laws

Final Thoughts

The Hains family’s transition demonstrates clearly how well-devised planning, coupled with sophisticated tax structuring, can offer protection for successive generations. There is growing pressure from regulatory regimes, and families of ultra-high net worth should be agile with the latest toolkits in tax planning, appropriate advisors, and strong governance systems. 

At Belay Advisory, we help UHNW families navigate the many complexities, involved in creating a lasting legacy. Whether you’re dealing succession planning, trust structuring, or even tax optimisation, now is the time to take action. Let’s start the conversation today