ATTITUDES towards inheritance could be shifting, with a new study revealing that less than half of Australians aged over 50 have a detailed plan for leaving an inheritance for their children.
The Australian Seniors Series: Inheritance Insights report showed almost 48 per cent of seniors had a detailed inheritance plan for their children, with 45 per cent having a vague plan and 10 per cent having no plan at all.
As well, more than a quarter of those surveyed did not have a will setting out how their estate is to be distributed upon their death.
While the overwhelming majority (85 per cent) are likely to leave an inheritance for their children, only 65 per cent feel they have a responsibility to provide for their children's future.
And one in five (20.9 per cent) believe it is not important to leave an inheritance for their children.
"While our research shows the majority of seniors do intend to leave an inheritance for their children, significant percentages of those people we surveyed see their responsibility to do so diminishing compared to their parents' generation," said Australian Seniors Insurance Agency chief marketing officer Simon Hovell.
"There are also obvious frustrations from seniors towards the expectations of children and grandchildren when it comes to inheritance, with almost a quarter of those surveyed believing their children and grandchildren expect too much from them in this regard.
"This expectation means many have to tread carefully around what is often a very personal matter that can unfortunately breed resentment with nearly three in 10 feeling this way."
The research also shines a light on the vast majority of seniors (88.9 per cent) who say they would not feel guilty about spending money that could go towards an inheritance for their children, despite the fact that one in five think their children and/or grandchildren will come to rely financially on this inheritance.
Don't 'set and forget'
Aged Care Gurus principal Rachel Lane said planning for an inheritance can help ensure the right assets are given to the right people at the right time, while at the same time factoring in things that can come as a nasty surprise, like tax.
"Good estate planning isn't 'set and forget'," Ms Lane said.
"It should be reviewed regularly given financial circumstances are likely to change over time.
"It is also worth noting that not all of a person's assets necessarily form part of the estate: insurance policies, superannuation, jointly owned assets, as well as those held in companies and trusts, often fall outside the bounds of a will."
Ms Lane said it was interesting to note the percentage of people who believe they will leave less than their parents.
"Increasing longevity no doubt plays a role in this and people are factoring in the need to plan and pay for a longer, and possibly more exciting, retirement than their parents had," she said.
The survey showed that almost one in five seniors had concerns that the issue of their estate could cause arguments between family members, particularly when it comes to property and money.
Interestingly, 10 per cent of respondents plan to leave at least some portion of their estate to their pets. Of these, nearly a quarter say their children have no knowledge of this.
View the full findings of the report at https://www.seniors.com.au/news-insights/inheritance-retirement-survey
* The Australian Seniors Series: Inheritance Insights report is the 10th instalment of The Australian Seniors Series, an ongoing national study investigating the shifting attitudes and concerns affecting over-50s by the Australian Seniors Insurance Agency.
