Attention Older Australians: Are You Making This Surprising Change to Your Will? Find Out Why Many Are Going Against Tradition!
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In the ever-evolving landscape of family dynamics and financial planning, a significant shift is occurring in the way older Australians are approaching their wills and the distribution of their inheritance. Gone are the days when it was a given that children would be the primary beneficiaries of their parents' estates. Instead, a growing number of seniors are choosing to leapfrog a generation, directing their legacies to their grandchildren. This trend is not just a passing fad but a reflection of changing societal norms and economic pressures.
Isabelle Marcarian, a principal solicitor at Safewill Legal, has observed this trend firsthand. She notes that many grandparents in their 60s to 80s are seeing their children, who are in their 40s to 60s, as financially stable and well-established. Consequently, they are turning their attention to their grandchildren, particularly those in their 20s and 30s, who may be struggling with the daunting realities of the property market and the cost-of-living crisis.
The statistics from Safewill Legal are telling: there has been a tripling in the proportion of wills including grandchildren as beneficiaries, over the last five years. Even more striking is the 225 per cent increase in wills that bypass children entirely in favor of grandchildren. The share of inheritance going to grandchildren has more than doubled, from 5 per cent to 12 per cent, in the same period.
This generational skip can often be attributed to the grandparents' desire to provide for the younger generation, who may be disillusioned with their financial prospects. The rising costs of home ownership and rent, coupled with the broader cost-of-living crisis, have made it increasingly difficult for young adults to achieve the same level of financial security that their parents may have enjoyed.
Interestingly, this decision to favor grandchildren in wills is typically made with the understanding and consent of the children. Markarian points out that many parents recognise the benefits for their own children and agree with the decision, as it is made out of love and concern for the family's future.
However, there's a more sombre reason behind some of these decisions. Grandparents are concerned about the potential for their children's marriages to end in divorce, which could result in their assets leaving the family. By passing their inheritance directly to their grandchildren, they aim to keep the wealth within the bloodline for a longer period.
Take the case of Isabel Almendrades, who has named her grandchildren as the sole beneficiaries of her will. Her daughter, Vanessa, supports her decision, recognising that the wealth her mother accumulated should be distributed as she sees fit. Vanessa understands that her mother's joy and connection with her grandchildren have inspired this choice.
The broader context of inheritance in Australia is also changing. The Productivity Commission estimates that around $3.5 trillion will be transferred intergenerationally from Baby Boomers. Finder's research indicates that a third of Australians expect to receive an inheritance, with varying expectations about the amount and timing.
Yet, there's another movement gaining traction: the Spending the Kids' Inheritance (SKI) movement. Individuals like single mum Trudy Wertheim and the Rylands are choosing to use their savings to enjoy their later years, travelling and experiencing life to the fullest, rather than leaving a substantial inheritance.
This shift in inheritance practices raises important questions for older Australians. Are you considering making changes to your will that reflect these trends? How do you balance the desire to support your grandchildren with the expectations of your children? And for those who are part of the SKI movement, how do you communicate your intentions to your family to ensure understanding and avoid potential conflicts?
As we navigate these complex decisions, it's crucial to have open and honest conversations with family members about our wishes and the reasoning behind them. Whether you're planning to support your grandchildren directly, help your children, or enjoy your hard-earned savings, it's essential to ensure that your will reflects your true intentions.
We invite our readers to share their thoughts and experiences. Have you made a similar change to your will, or are you considering it? How has your family reacted to these discussions? Join the conversation below and let us know how you're approaching this delicate topic.
Isabelle Marcarian, a principal solicitor at Safewill Legal, has observed this trend firsthand. She notes that many grandparents in their 60s to 80s are seeing their children, who are in their 40s to 60s, as financially stable and well-established. Consequently, they are turning their attention to their grandchildren, particularly those in their 20s and 30s, who may be struggling with the daunting realities of the property market and the cost-of-living crisis.
The statistics from Safewill Legal are telling: there has been a tripling in the proportion of wills including grandchildren as beneficiaries, over the last five years. Even more striking is the 225 per cent increase in wills that bypass children entirely in favor of grandchildren. The share of inheritance going to grandchildren has more than doubled, from 5 per cent to 12 per cent, in the same period.
More older Australians left their inheritance to grandchildren instead of children due to high living costs and property market issues. Credit: Shutterstock
This generational skip can often be attributed to the grandparents' desire to provide for the younger generation, who may be disillusioned with their financial prospects. The rising costs of home ownership and rent, coupled with the broader cost-of-living crisis, have made it increasingly difficult for young adults to achieve the same level of financial security that their parents may have enjoyed.
Interestingly, this decision to favor grandchildren in wills is typically made with the understanding and consent of the children. Markarian points out that many parents recognise the benefits for their own children and agree with the decision, as it is made out of love and concern for the family's future.
However, there's a more sombre reason behind some of these decisions. Grandparents are concerned about the potential for their children's marriages to end in divorce, which could result in their assets leaving the family. By passing their inheritance directly to their grandchildren, they aim to keep the wealth within the bloodline for a longer period.
Take the case of Isabel Almendrades, who has named her grandchildren as the sole beneficiaries of her will. Her daughter, Vanessa, supports her decision, recognising that the wealth her mother accumulated should be distributed as she sees fit. Vanessa understands that her mother's joy and connection with her grandchildren have inspired this choice.
The broader context of inheritance in Australia is also changing. The Productivity Commission estimates that around $3.5 trillion will be transferred intergenerationally from Baby Boomers. Finder's research indicates that a third of Australians expect to receive an inheritance, with varying expectations about the amount and timing.
Yet, there's another movement gaining traction: the Spending the Kids' Inheritance (SKI) movement. Individuals like single mum Trudy Wertheim and the Rylands are choosing to use their savings to enjoy their later years, travelling and experiencing life to the fullest, rather than leaving a substantial inheritance.
This shift in inheritance practices raises important questions for older Australians. Are you considering making changes to your will that reflect these trends? How do you balance the desire to support your grandchildren with the expectations of your children? And for those who are part of the SKI movement, how do you communicate your intentions to your family to ensure understanding and avoid potential conflicts?
As we navigate these complex decisions, it's crucial to have open and honest conversations with family members about our wishes and the reasoning behind them. Whether you're planning to support your grandchildren directly, help your children, or enjoy your hard-earned savings, it's essential to ensure that your will reflects your true intentions.
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