Report Reveals Views on Leaving an Inheritance

A new report has given an interesting insight into how Australia’s seniors feel about leaving an inheritance for the next generation, and how they intend to balance any inheritance intentions with the need to fund their retirement. 

According to the report, by the Australian Seniors Insurance Agency, around $3.3 trillion is due to be passed on to the children of seniors, and an additional $343 billion will be left to their grandchildren.

Around 85% of seniors questioned said that they will probably be leaving some sort of inheritance to their children, and only around 20% said that it wasn’t an important consideration for them. Of those who said leaving an inheritance wasn’t important to them, 32% said this was because they wanted to take care of themselves first.

For some seniors (16.8%), the thought that they might not be able to leave an inheritance to children or grandchildren is a cause of considerable concern. The report suggests that this might be why around a third would like to delay their retirement for as long as they can, to give them more time to build up a substantial estate.

A second common cause for concern, mentioned by 17.8% of respondents, is the possibility of family members arguing over their estate after they have gone. The division of property and money from the estate were thought to be the most likely causes of conflict.

One of the best ways to ensure an estate is distributed in line with your wishes is to have an up-to-date and legally valid Will in place. You can also help to minimise the risk of conflict developing over your Will by discussing its contents with your loved ones to ensure there are no surprises when the time comes.

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Szabo & Associates, Solicitors can offer expert advice on a wide range of legal matters, including contesting, making or updating a Will and preparing an Enduring Power of Attorney and Appointments of Enduring Guardians. Please call George Szabo on (02) 9281-5088 or fill in our online contact form.