Our nation is on the crest of the largest intergenerational transfer of wealth in history with assets held now by the over 65s also known as the “builders”, plus assets of younger “baby boomers”, which adds up to more than 60% of Australia’s private wealth.
Behind these numbers are personal stories and sadness, as inheritance comes from the loss of a loved one. Not surprisingly an inheritance can cause a number of emotions, making it hard to make the best decisions about personal goals, and the best use of any financial gains.
Often, there is a long time before the inherited assets are actually received, as the processes of settling an estate can be rather drawn out. This time should be the time for planning for the future, but it can also the time of major adjustment as people are trying to come to terms the with loss and grief.
Asking questions about receiving an inheritance
It could be looked at as a blessing in disguise the fact that it takes some time to settle an inheritance as it provides time to plan, to review, and to get ready for any transfer of assets. For some, it is a break through moment, a chance for a new beginning, and an opportunity to advance financially.
The usual questions you may face when a large amount of money is involved. Do you sell the inherited assets to pay off your home loan, or get ready for an early retirement? What treasured possessions do you keep for your children? Do you go on a holiday, or invest the money?
Receiving an inheritance can be a good reason to review your own financial situation. Depending on how old you are and situation, and how big and the type of inheritance, it may also be a good time to review your own estate plan.
For a lot of people receiving an inheritance can be the start of a comfortable future. And, all of a sudden, that realisation can put the plans you have made for future generations, or not made, into focus.
Finding answers about receiving an inheritance
When you want to decide how to take advantage of your good fortune, it is good to know that a financial adviser will help you. You can plan ahead and go through the decisions needed to manage a financial gain together. To answer questions like should you sell or keep assets, and how to best plan for your and your families future income requirements.
Your adviser will work with other professionals that work in estate planning, especially accountants and legal advisers. It is crucial because, for instance, the legal structures with estates can be complex; it also varies depending on the place as state and national laws maybe involved.
There could also be major taxation issues to look at if you inherit an investment property, shares, or superannuation.
Talking to us will help you with these type of questions, to put a plan in action to meet your immediate and long term financial requirements, and to provide you and your loved ones with a solid foundation for the future.