We’re in the middle of the greatest family wealth shift in Australia with trillions of dollars set to move from Baby Boomers to their kids and grandkids. But instead of waiting for the will to be read, many Boomers are stepping in now and transferring wealth to their children and grandchildren while they can see the impact.
In this article we explore why that can be a smart strategy on many levels, and how to go about it.
Why Timing Matters
Young adults today are battling high house prices, stagnant wage growth, student loans and a sky-high cost of living. Plenty of Boomers, who bought property when it was affordable (and saved hard) are now asset rich. Helping family now with home deposits, education costs, or those bucket-list family holidays can have a huge impact, especially while everyone’s healthy enough to enjoy the experience.
The real regret we hear? Leaving money behind but missing out on travel or special moments because health changed, or time just ran out.
Navigating family conversations about inheritance
Open, honest communication is at the heart of a successful wealth transfer. Consider setting aside time for a family meeting to discuss long-term goals, expectations, and what a meaningful legacy looks like for everyone involved. Encourage each family member to share their hopes and concerns—listening is just as important as expressing your own wishes.
Sometimes, bringing in a trusted financial adviser as a facilitator can help keep discussions positive and productive.
Lay-by vs Afterpay: Mindset shift
Boomers grew up with “lay-by” where you saved first, then bought what you wanted. Today, it’s all about buy-now-pay-later. It’s instant gratification, but it can also mean “debt now and worry later”.
The lesson? Sometimes patience really does pay off, and building wealth isn’t about having the newest thing—it’s about making smart, sustainable choices. Transferring wealth strategically can set up younger generations for long term financial success.
Living longer, living smarter
As life expectancy increases, plenty of Boomers could actually outlive their asset base if they keep going as they are.
The good news? Knowing this, and planning for it, can boost your confidence to share some now, support family, and still have plenty for a long, rewarding retirement.
Gifting risks and pitfalls: Give smart, not just generously
While helping now can be incredibly meaningful, it’s important to proceed thoughtfully. Large gifts or informal “helping out” can sometimes create misunderstandings or even reliance.
It’s best practice to document significant gifts or loans in writing. Clear agreements safeguard everyone and can help prevent future tension. Most importantly, ensure your own long-term security first: truly wise giving empowers, rather than enables.
Smart strategies for giving
There’s more to gifting than just writing a cheque. With possible super changes (like the $3 million test), we’re having conversations about strategic withdrawals from super and even directing these into kids’ super balances—locking in future security, and maximising tax-effective compounding.
Another option? Using a family trust . This structure lets you pass assets or income to your kids and grandkids in a tax-effective way, while you stay in control over how and when the money’s distributed.
Or, if you want to give back and support the causes you love, you can set up a philanthropic structure such as a Public Ancillary Fund - a tax-effective way to make a real impact in the community.
Leave a legacy greater than numbers
True legacy? It’s not just dollars. It’s about sharing values, resilience, and opportunities now, not when you’re gone.
Holistic wealth advice can make all the difference too. You get the full picture, maximise impact, and protect your lifestyle, while giving your family the best platform for the future.
Ready to explore smarter ways to “give while you live”? Submit the form below to book a free financial advice consultation.
