July 2nd 2024.
According to recent research, a significant number of Australians are counting on inheriting money from their relatives. In fact, more than 1 in 3 respondents in a survey conducted by Finder have high hopes of receiving an inheritance in the coming years. And, surprisingly, a whopping 40% of those surveyed would prefer to receive their relative's assets before their passing.
Out of the 1062 respondents, 28% are expecting to inherit over $100,000 while 20% anticipate receiving between $50,000 to $100,000. Another 15% are hopeful for an inheritance of up to $50,000. In terms of property, 21% are expecting to inherit one property and 4% believe they will receive two properties.
Sarah Megginson, a personal finance expert at Finder, shared that in the next few years, trillions of dollars' worth of assets will be inherited by the younger generations. This is due to the fact that many baby boomers have accumulated wealth and are now passing it down to their children and grandchildren. Megginson also mentioned that with the current rise in home and stock values, this will be the largest intergenerational wealth transfer in the country's history.
While most Australians will have to wait for their inheritance, there are cases where it is possible to receive it earlier. Megginson explained that receiving an early inheritance not only allows the parent to witness their loved ones enjoying the gift, but it also gives the younger generation more opportunities to use the money towards improving their lives, such as buying a home or investing in education. However, she also advises that this decision should not be taken lightly and one must consider their future financial needs and tax implications.
To ensure that assets are distributed according to one's wishes, Finder recommends starting estate planning as soon as possible. This includes creating a comprehensive list of all assets that make up one's estate, such as superannuation, trusts, and life insurance. It is also important to consider potential risks that may affect the distribution of assets, such as divorce, mental incapacity, or an early death. By planning ahead, one can ensure that their assets are passed down to their loved ones in the most effective and beneficial way.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
