An estimated $2.6 trillion will be passed from Baby Boomers to the next generations in the 20 years to 2040 according to Philanthropy Australia.
Families in Australia’s top suburbs for inheritances will hand down more than $3.3 million on average from one generation to the next, with children in Sydney’s harbourside regions edging those in Melbourne’s Toorak as set to gain the most from mum and dad.
It has been estimated that the amount of inheritance (mainly from the baby boomer generation) likely to be passed on will increase fourfold over the next three decades.
ANZ estimate approximately, $3.5 trillion will be bequeathed over the next decade to reach $224 billion per year by 2050!
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However, according to ANZ Private Bank’s research, approximately 70% of intergenerational wealth transfers fail because of family conflicts and other problems.
In my mind the best way to avoid many of these problems is to gift wealth prior to death, but this has its own challenges.
Since you can't take it with you when you die, your goal should be to enjoy your wealth as much as possible whilst you are alive.
That enjoyment can include spending it yourself (on things like travel) and gifting it to family members and charities.
Whatever you do, make sure you have a plan, so you never compromise your own retirement.