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Most of our clients want to leave a “little something” for their children or grandchildren when they die. But what happens if the younger members of your family are struggling financially now? Do you simply provide for them as part of your estate planning or do you give them a financial boost while you are still around to see how it helps them?

The concept of “intergenerational wealth management” has been an issue in wealthy families for centuries. However, soaring house prices, high tertiary education costs or private school fees and the financial uncertainties of the past few years, has meant it’s become a mainstream concern for many Australian families.

Our clients typically ask us about helping their children purchase their first home or whether they can afford to assist with covering their grandchildren’s school fees or tertiary education costs.

However, the desire to help a family member is always filled with understandable fears for their own financial stability in retirement.

There’s also the tax implications and the “what if” questions. Like what happens if we gift the house deposit to our child and then they divorce. Will their spouse get half? Or we’d like to help pay for our grandchild’s university fees but what happens if he/she doesn’t complete the course or the other grandchildren want a university education? Another common concern is how do you treat all family members equally if you help one of them now.

Protecting yourself or helping your family?

From the moment we become parents, we want to help and protect our children so they can live happy, healthy and comfortable lives. That’s why wills, estate planning and leaving an inheritance is so important to many of our clients.

But when you see a real need for financial assistance now, it’s natural to feel both a strong desire to help combined with a fear about whether you can afford it.

Our Treysta advisors are skilled at helping people navigate the complexities of family gifting in a fair and equitable way. We’ll advise you on:

  • How much you can afford to gift without risking your own financial security
  • What trade-offs you may need to make as a result of your gift so you can make an informed decision
  • How you might be able to design your gifting to address the needs of each family member
  • Estate Planning options to equitably give to one child or grandchild now without penalising the others

We’ll help you act with confidence

Seeing your family happy and thriving is one of the greatest joys in life and with careful planning and solid advice, you can experience it for yourself. All it takes is an honest discussion with your Treysta advisor so you can put the most appropriate plans in place. To make a time, call 02 9241 2575 or contact us here.

To read about some of the ways we have helped other clients navigate the complexities of financially assisting their families, visit Generational Wealth Money Moments. Or, to receive monthly tips and educational insights, follow us on Facebook or Instagram.

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