The one thing millions of young Aussies want boomers to do right now
A new survey has found that almost half of Australians who expect to inherit a loved one’s assets would prefer to receive them as a gift while they are still alive.
Finder surveyed 1,062 people and found that 40 percent would choose to receive their inheritance early.
The new survey found that 20 percent think they will receive more than $50,000, while 28 percent expect to inherit more than $100,000.
According to the same data, 21 percent think they will inherit one home, while four percent think they will inherit two homes.
But 27 percent say they are “not sure” what they will receive and 64 percent say they do not expect an inheritance in the next few decades.
The data comes less than a week after research by Seer Data and Analytics found that the average family in Rose Bay, Vaucluse and Watsons Bay, in Sydney’s eastern suburbs, is leaving $3.75 million to their children.
The average inheritance in Lindfield, Roseville and other parts of the North Shore also exceeded $3 million, news.com.au reported.
According to Sarah Megginson, personal finance expert at Finder, assets worth trillions of dollars will be passed down to younger generations in the coming years.
Of the 1,062 people surveyed by Finder, a whopping 40 percent admitted they would choose to receive their inheritance earlier
“After decades of building wealth, baby boomers are leaving trillions of dollars in savings and investments to their children and grandchildren,” she said.
“In an era of rising house and stock prices, this will be the largest intergenerational wealth transfer the country has ever seen.”
The Productivity Commission estimates that seniors will transfer $3.5 trillion in wealth over the next 20 years, an average of about $175 billion per year.
Ms Megginson said it is possible, and in some cases even desirable, to transfer your assets while you are still alive.
“If parents receive an inheritance at a young age, they can see their children or grandchildren enjoying the gift. And if they receive a financial windfall at a younger age, they can better spend that cash flow on something that will significantly improve their lives, like a down payment on a house or investing in an education,” the mother said.
The Productivity Commission estimates that seniors will transfer $3.5 trillion in wealth over the next 20 years
“It is not a decision you should make without carefully considering your future financial needs and the tax implications.”
Ms Megginson urged Australians to ensure they have a will that sets out how they want their assets to be distributed and who has control over the process.
“It is always best to make such decisions in advance and transparently, so that survivors are not left with false expectations,” she said.
‘For those who expect to be beneficiaries, it is important to plan how to best use the inheritance for future generations.’