Many of us are comfortable talking about property prices, interest rates and even superannuation. But inheritance is a conversation that we tend to avoid.

New research from Finder has found that almost two in three Australians plan to leave an inheritance when they die. Approximately $3.5 trillion currently resides in superannuation and savings accounts alone, and the best estimates suggest the total wealth transfer over the coming 10 to 15 years could be close to $5 trillion, according to Vanguard. This will be the largest intergenerational wealth transfer in the nation’s history.

For many families, it’s genuinely life-changing money. But good intentions aren’t the same as a good plan, and whether you’re the one giving or the one receiving, poor planning can lead to unnecessary stress, tax consequences or missed opportunities. The demand for advice in this space has never been stronger – CoreData estimates that over a million Australians who will be looking for financial advice during this period will be unable to access it. For those who can access quality financial planning help, the advantage is significant.

If you’re giving, what needs to be in order?

Wills and estate planning

A will is the foundation, but it needs to be current. Any changes in your circumstances, like marriage, divorce, new children, stepchildren, blended families or significant changes in assets, can all make an existing will inadequate or contested. For instance, in Queensland, marriage automatically revokes a previous will, unless the will was made in contemplation of that marriage.

A properly structured estate plan means your assets end up where you actually intended and reduces the risk of disputes that can cost families far more than money. If yours is more than a few years old, it’s worth revisiting.

Superannuation and beneficiary nominations

Super does not automatically form part of your estate. Instead, it is held in trust and paid out at the discretion of the fund trustee, unless you have a valid binding death benefit nomination in place. Without a current binding death benefit nomination, the fund trustee decides who receives it, though they must do so in accordance with superannuation law. That decision may not reflect your wishes.

Depending on the type of fund, binding nominations may lapse every three years unless renewed, while some funds offer non-lapsing nominations. It’s important to review your nominations regularly with a Gold Coast financial adviser like RFS Advice, as an outdated nomination can result in your super being distributed in a way that no longer reflects your intentions.

For larger estates, a testamentary trust – established through your will and activated on death – can be useful. These allow assets to be distributed through a trust structure rather than directly to beneficiaries. This can provide:

Testamentary trusts

• Tax advantages, particularly for families with children
• Protection from creditors
• Safeguards in the event of relationship breakdowns

While not necessary for every family, if your estate includes significant assets, it’s worth a conversation with a financial planner.

Gifting strategies

Some Australians choose to give assets before they die. This can be a great way to support children or grandchildren when they need it most – for example, helping with a home deposit in areas like Palm Beach or Helensvale.

This can be helpful to both you and the recipients, but it does carry implications. There are strict limits on how much you can gift without it affecting your entitlements. Gifts above $10,000 per financial year or $30,000 over a rolling five-year period are assessed under Centrelink’s gifting rules and can affect age pension entitlements.

Power of attorney

Estate planning is often only thought of as a plan for what happens after you pass away. But it is also about what happens if you lose capacity. An enduring power of attorney allows someone you trust to make financial and legal decisions on your behalf. Without one, your family may need to go through a lengthy legal process to gain control.

If you expect to receive an inheritance, what should you do?

Have a plan before it happens

Getting advice from a highly educated financial adviser like those at RFS Advice before you receive your inheritance is almost always better than after. When money arrives (often in an emotionally charged moment), the pressure to make quick decisions is real, and quick decisions with large sums rarely produce the best outcomes.

Receiving a large sum of money without a clear plan often leads to poor outcomes. It’s easy for funds to be absorbed into day-to-day spending or lifestyle upgrades, especially during an emotional time. Taking a step back and having a strategy in place beforehand can make a significant difference.

Focus on long-term outcomes

One of the most important decisions is how to balance immediate financial security with long-term growth. Paying down high-interest debt, topping up super or putting money to work through a structured investment plan will typically produce better long-term results than lifestyle spending.

For example, someone living in Mermaid Waters with a home loan may benefit more from reducing debt or investing strategically than upgrading their lifestyle in the short term.

Understand the tax implications

Australia has no inheritance tax, but that doesn’t mean inherited assets are tax-free. Capital gains tax can apply when certain assets – particularly investment properties and shares – are sold after being inherited. The tax treatment depends on when the original asset was acquired and how it is ultimately disposed of. Understanding the cost base and timing of any sale is critical to avoiding unexpected tax bills.

Super contributions

Depending on your age, contribution caps and total super balance, an inheritance can be a good opportunity to make concessional or non-concessional contributions to super. The rules around contribution caps and timing are specific. While contribution rules have become more flexible in recent years, caps still apply and exceeding them can result in additional tax.

Getting advice before making a contribution can help you understand what you’re eligible to contribute, how to structure it effectively and how it fits within your broader retirement planning strategy.

The conversation that benefits everyone

Money conversations within families can feel uncomfortable, especially when they touch on sensitive topics like mortality, fairness and what everyone expects. But avoiding the conversation doesn’t make the issues go away. It simply increases the likelihood of confusion or conflict later on.

A well-structured discussion, supported by professional advice, goes a long way toward keeping everyone on the same page. For families across the Gold Coast, this is an essential part of modern financial planning.

If you’re thinking about how to pass on wealth or how to make the most of what you may receive, now is the time to start the conversation. Speak to a Gold Coast financial adviser at RFS Advice to build a clear, tailored plan that supports your family’s long-term goals.

General advice warning:
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.

Frequently asked questions

Does my super automatically go to my family? Is there inheritance tax in Australia? Can gifting money affect my age pension? What happens if I die without a will in Australia?

General advice warning:

The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.