Early Inheritance: Should You Help Your Kids Before You Retire?
Parents today are increasingly passing on wealth while they’re still alive – often to help children buy a home. It can be generous, but it comes with risks.
The Upside
- Children benefit when they need it most
- Parents enjoy seeing the impact
- May reduce estate complexity later
The Risks
- Jeopardising your own retirement
- Centrelink rules: gifts over $10,000 per year or $30,000 over five years reduce Age Pension entitlements*
- Family conflict if gifts aren’t equal
Final Thought
Helping children early can be rewarding – but only if you protect your own financial security first.
References
- Services Australia. Age Pension: Gifting Rules, 2024.
Disclaimer: This information is of a general nature only and does not constitute advice. It has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances. Hendrie Financial Strategies is a corporate authorised representative of the Madison Financial Group Pty Ltd, Australian Financial Services License No 246679, ABN 36 002 459 001.
