Beyond the Will: What 125 Years Has Taught Us About True Wealth Preservation
By Jeremy Sullivan – Investment Adviser (FSP260665) – 0800 10 40 50: jeremy@hhg.co.nz
It takes a generation to build wealth, and just a few years of poor planning to see it unravel.
At Hamilton Hindin Greene, we’ve been helping New Zealand families preserve and grow generational wealth for 125 years. Across depressions, booms, tax law changes and family disputes, one truth has stayed constant: wealth preservation isn’t just about money. It’s about people, governance and foresight.
Too many families focus on asset growth and overlook the structures, education and stewardship that turn financial capital into a true legacy. Here’s what we’ve learned, and why it matters now more than ever.
1. The Real Risk Isn’t Market Volatility. It’s Lack of Structure
In 2022, a third-generation Christchurch family came to us after a breakdown in their family trust. With two siblings overseas, an aging trustee, and unclear distribution policies, tensions had escalated. The result? A frozen portfolio and fractured relationships.
This wasn’t a case of poor investing. It was poor planning.
Lesson: Without a fit-for-purpose legal and governance structure, even the best portfolios fall apart. Wills, powers of attorney, trust deeds and ownership vehicles (joint, several, company, etc.) all need to evolve with your family and with New Zealand’s law.
From 1 April 2021, the Trusts Act 2019 introduced major changes, including mandatory disclosure obligations and greater accountability for trustees. Many families still haven’t caught up until the IRD reminds them.
What to do: Review your trust deed and estate plan at least every 3 years, or whenever family or legal changes occur. A 30-minute conversation today could save years of drama.
2. True Preservation Requires Tax Foresight
There’s a reason wealthy families hold assets in tailored structures. Not just for protection, but for efficiency.
- Family trusts are still the backbone of intergenerational planning, but come with IR6 disclosures, financial statement obligations and now, capital distribution reporting thresholds.
- Joint or several ownership (tenants-in-common) arrangements can offer flexibility but may complicate estate planning or create unequal control dynamics.
The HHG view: There’s no one-size-fits-all. But there is a wrong size, and the cost is often hidden in tax leakage, family tension or loss of control.
Pro Tip: Don’t assume what worked for your parents will work for your children. Tax laws, family dynamics and investment vehicles have changed. So must your structure.
3. KiwiSaver Is a Strategic Tool. Not Just a Retirement Plan
Too many high-net-worth families treat KiwiSaver as an afterthought. That’s a mistake.
With balances now exceeding $121 billion, KiwiSaver is quietly becoming one of the largest financial assets in many households. But how it’s managed, and where, can make a significant difference.
KiwiWRAP KiwiSaver Scheme, the platform we often recommend, allows families to:
- Consolidate large KiwiSaver balances into a broader wealth plan
- Access over 400 investment options, including ESG-aligned global assets
- Use an adviser-led approach, integrating KiwiSaver into estate, tax and portfolio strategy
- Optimise tax through the flat 28% PIE rate, often more efficient than personal tax rates for high earners
We’ve had clients shift over $500,000 of KiwiSaver balances into KiwiWRAP to align with their family trusts, charitable interests or ESG mandates. All with clarity, control and cohesion.
Insight: It’s not just about maximising returns. It’s about folding KiwiSaver into a unified family wealth strategy.
4. Education Is the Anchor of Long-Term Wealth
The biggest difference we see between families who maintain wealth and those who don’t? Education.
Not just financial literacy, but active engagement from the next generation.
We encourage families to hold annual meetings, create family governance charters, and involve adult children in succession and investment decisions. In one HHG case, a client even created a “family investment committee” for his children to shadow. Five years later, those same children now co-govern their family’s investment trust with confidence.
What we know: Capital without capability rarely lasts. The earlier you involve the next generation, the stronger your legacy will be.
Try this: Document your family’s values and mission, not just your net worth. Share it with your HHG adviser and successors. It becomes the cornerstone of your legacy plan.
5. Preservation Isn’t Set and Forget. It’s a Living Strategy
Wealth preservation is not an event. It’s a discipline.
It requires annual reviews, active asset allocation, compliance check-ins and transparent communication. HHG clients benefit from:
- Prudently structured portfolios focused on capital preservation, growth and income
- Rules-based portfolio rebalancing, tailored to their risk and ethical preferences
- Referrals to trusted legal, tax and governance partners for trusts, companies and charitable vehicles
- Long-term strategic planning that integrates KiwiSaver, property, business succession and more
As markets evolve and family dynamics shift, the only effective strategy is one that adapts.
In Closing: What Legacy Do You Want to Leave?
Wealth is more than money. It’s the values you embed, the relationships you preserve and the structures you build to protect what matters.
At Hamilton Hindin Greene, we’ve guided New Zealand families through every kind of economic storm and celebration for over 125 years. The strategies may change. But the mission stays the same: clarity, care and continuity.
If you’re ready to take your family’s wealth preservation seriously, or simply want a second opinion, we’d be honoured to guide the conversation.
🟢 Contact us today for a confidential discussion about protecting your family’s future.
