Inheritance

Discussion in 'Living Room' started by MTR, 3rd Dec, 2019.

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  1. MTR

    MTR Well-Known Member

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    I wonder whether the next generation will receive any inheritance??

    We are living longer and aged care facilities require bonds etc and in many cases I expect the primary residence will need to be sold off etc

    Sure we are property investors and have assets, however I read recently on PC only 3% will achieve $100k income. Regardless whether we do or don’t we still need to fund retirement and perhaps this means selling assets if you can not generate enough income

    Link (US) stats, nonetheless interesting read

    Baby Boomers May Be the First Generation Not to Pass Wealth On to Children, Survey Says.
     
  2. geoffw

    geoffw Moderator Staff Member

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    I don't know about the first generation. My dad retired at 45 (with a few small projects) and died at 91 leaving a small amount for us. Great for him! He had his overseas trips along the way, and a comfortable retirement home which treated him well.
     
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  3. MTR

    MTR Well-Known Member

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    Very nice
     
  4. Lizzie

    Lizzie Well-Known Member

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    Not expecting one - not so much because there isn't money there, but rather my two-up genetics on that side of the family have reached a "full marbles" and functioning well physically nearly-102 years old

    Going by family history, by the time the one-up genetics pops the clogs, I'll be to old to enjoy it
     
  5. Marg4000

    Marg4000 Well-Known Member

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    Bonds for nursing homes are huge, but most is returned to the estate after the person dies. Leglislated amount can be deducted each month for 60 months to the nursing home. Total maximum around $40K (vague memory). Bonds are basically an interest free loan.
     
  6. Travelbug

    Travelbug Well-Known Member

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    My grandparents died with nothing. My father with aangry to boring. My mother had a modest house.
    With people living to their 80's and 90's the kids will be past retirement age, if there is anything left.
    The average person would most likely have nothing left.
     
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  7. Stoffo

    Stoffo Well-Known Member

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    I have seen too many friends WASTE their inheritance :mad:
    Tried to tell them too invest into managed funds and such
    Holidays and new cars came before mortgage payments, then bikes and new kitchens :rolleyes:
    My parents did well out of property in the 80s, they were/are frugal, dad retired soon after 40, they divorced years ago and as a result ended up putting the proceeds from property sales into superannuation and investment funds, but kept a ppor each.
    Now in their early 70s I encourage them to spend, Dad books the cheap flights at odd hours still, and mum now has a late model car instead of a brand new one.
    My wealth now exceeds either of theirs (and I'm working at the combined)

    I've told them for years I don't need "their" money
    Sure it'd be nice, but I much prefer having them around still ;)
     
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  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    My parents pretty much inherited nothing from their parents - maybe a few thousand each - so there is no nest egg for them to pass down. They have very little Super having used it to pay off their mortgage so just have their house as their sole asset which they have just sold to move into over 55s. I'm not expecting much when they fall off the perch but I don't need it, I'll make my own inheritance based on the opportunities they gave me in life.
     
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  9. KinG3o0o

    KinG3o0o Well-Known Member

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    my parents have some inheritance, but not much

    i am the only child, both parents have their own business,

    so yes I will have an inheritance,

    as this is the internet and I can be honest, without their help will I ever earn like my mom,

    probably not, actually, will not.
     
  10. Sackie

    Sackie Well-Known Member

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    I'll likely receive a sizeable inheritance in the next 20 years or so. Parents have two kids, 50/50 split. Not that I'm waiting for it.

    I'll leave 70% of my wealth to my daughter and 30% to different charities.


    I feel my biggest responsibility now is to raise a well grounded, no entitlement attitude, hard working daughter who has empathy for others and a giving hand as well as a responsible and mature head on her shoulders who will know when to be gentle and understanding and when to be tough as nails. Life is certainly not an easy game, no matter how you look at it.
     
    Last edited: 3rd Dec, 2019
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  11. Gen-Y

    Gen-Y Well-Known Member

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    Zip Nada - Don't need it.
    If I do get some inheritance... I will spend it like a drunken sailor. ;)
     
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  12. Tony3008

    Tony3008 Well-Known Member

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    In the UK inheritance tax is levied on everything over (IIRC) £325K (A$620), twice this for the survivor of a couple. In a recent election story one report said that 37% of voters were in favour of IHT being cut or abolished. The really shocking thing is that only 5% of estates are subject to tax. 32% of people altruistically would like others to pay less, presumably making up the shortfall themselves.

    Sidenote: although this might sound bad, CGT liabilities die with you so in UK if your estate is a £500K IP bought for £200K and nothing else of consequence, no tax is payable. Here AIUI the recipient inherits the latent tax liability along with the property.