More than a third of Australians banking on an inheritance

Millions of Australians are banking on an inheritance and would prefer to have it paid out prior to their relative’s death, new research has found.

Of the 1062 respondents surveyed, 28 per cent believed they would receive more than $100,000 and 20 per cent expect to inherit between $50,000 to $100,000.

At least 15 per cent anticipate an inheritance of up to $50,000.

In terms of estates, 21 per cent expect to inherit one property while 4 per cent believe they’ll inherit two properties.

Personal finance expert at Finder, Sarah Megginson, said trillions of dollars worth of assets were set to be inherited over the coming years.

“After decades of building up wealth, baby boomers are passing down trillions in savings and investments to their children and grandchildren,” she said.

“In an era of surging home and stock values, it’s going to be the largest intergenerational wealth transfer the country has ever witnessed.”

Megginson said while most Australians will have to wait it out in some cases it is possible to receive an inheritance sooner.

“An early inheritance lets the parent see their children or grandchildren enjoying the gift, and the financial windfall at a younger age gives them more opportunity to use it towards something that drastically improves their life, like a deposit on a home or investing it in education,” Megginson said.

“It’s not a decision that should be made without some serious consideration of your future financial needs and also the tax impacts.”

To ensure your assets are distributed accordingly, Finder recommends to begin estate planning as soon as possible.

This includes creating a list of all assets that forms your estate such as superannuation, trusts and life insurance.

Also include potential risks as part of your planning, such as divorce, mental incapacity or an early death.