Nearly half of Australians hoping to inherit a loved one’s estate would prefer to receive it as a gift while they are still alive, according to a new survey.
Finder surveyed 1,062 people and found that 40 percent would choose to receive their inheritance early.
The new research found that 20 percent expect to receive more than $50,000, while 28 percent expect to inherit more than $100,000.
According to the same data, 21 percent believe they will inherit one property, while 4 percent believe they will inherit two.
But 27 percent said they are “not sure” what they will receive and 64 percent said they do not expect an inheritance in the next few decades.
The data comes less than a week after a study by Seer Data and Analytics found that the average family in Rose Bay, Vaucluse and Watsons Bay, in Sydney’s eastern suburbs, will pass on $3.75 million to their children.
The average inheritance in Lindfield, Roseville and other parts of the North Coast was also more than $3 million. news.com.au reported.
Finder personal finance expert Sarah Megginson said trillions of dollars in assets will pass to younger generations in the coming years.
Of the 1,062 people surveyed by Finder, a staggering 40 percent admitted they would choose to receive their inheritance early.
“After decades of accumulating wealth, baby boomers are passing on trillions of dollars in savings and investments to their children and grandchildren,” he said.
‘At a time when home and stock values are soaring, it will be the largest intergenerational transfer of wealth the country has ever seen.’
The Productivity Commission estimated that older adults would transfer $3.5 trillion in wealth over the next 20 years, or an average of about $175 billion per year.
Ms Megginson said it is possible, and in some cases preferable, to pass on your assets while you are still alive.
“An early inheritance allows parents to see their children or grandchildren enjoying the gift, and the financial gain at a younger age gives them more opportunities to use it on something that will dramatically improve their life, such as a deposit on a house or investing in education,” he said.
The Productivity Commission estimated that older people would transfer $3.5 trillion in wealth over the next 20 years.
‘It is not a decision that should be made without seriously considering your future financial needs and also the tax impact.’
Ms Megginson urged Australians to make sure they have a will outlining how they want their assets distributed and who controls the process.
“It is always better to make these decisions in advance and with transparency, so that family members are not left with false expectations,” he said.
‘For those who expect to be beneficiaries, it is important to plan how to make the most of the inheritance for future generations.’