Knowledge Base
Inheritance FAQs
Search every question I’m asked most often, or filter by topic. If something isn’t covered, a 15-minute call is the fastest way to get a straight answer.
Browse by category
Book Free 15-Minute Call13 questions matching your filters
Inheritance planning overlaps with estate strategy to ensure that assets flow smoothly, fairly, and tax-efficiently. A financial planner works with solicitors to coordinate wills, super nominations, and structures like trusts and thereby align financial goals with legal protections to reduce disputes and preserve family wealth across generations.
Yes, through gifting or transferring assets, but gift rules (opens in a new tab) apply for Centrelink and tax implications can arise. For example, gifting above $10,000 in a year may reduce Age Pension. A financial planner coordinates with legal advisors to weigh advantages, risks, and timing of living inheritances.
Inherited property may be exempt from CGT (opens in a new tab) if sold within two years of the deceased’s death and it was the main residence. Otherwise, CGT applies on sale (opens in a new tab) using original cost base. Planners advise on timing, occupancy, and structuring to minimise tax before deciding to sell or hold.
It depends on goals and timelines. Options include reducing debt, contributing to super, building diversified share or ETF portfolios, or investing in property. Each has tax, liquidity, and risk trade-offs. A financial planner models scenarios side by side so clients choose confidently.
Initially, use secure, liquid options: high-interest savings accounts, term deposits, or offset accounts against mortgages. These preserve value while decisions are made. A financial planner balances safety with opportunity cost, helping decide when to move from holding accounts into longer-term investments.
Super can be a tax-effective option, especially for high-balance accumulators nearing retirement. Non-concessional contribution caps (opens in a new tab) and age limits apply. A financial planner calculates whether adding to super saves tax versus retaining flexibility outside super, ensuring you don’t trigger penalties or restrict access before preservation age.
Yes. Inheritances count toward the Age Pension assets and income tests once accessible. This can reduce or suspend payments (opens in a new tab). Financial planners help manage timing, gifting rules, and asset structures so clients remain compliant while preserving as much pension entitlement (opens in a new tab) as possible under Centrelink’s framework.
The ATO doesn’t “take” inheritances directly, but tax applies to capital gains on inherited property or shares when sold, and super death benefits may attract tax if paid to non-dependants. Planners model timing and beneficiaries to minimise exposure and ensure the net benefit is maximised.
There’s no inheritance tax in Australia, but inherited assets may trigger tax when sold (opens in a new tab). Cash inheritances aren’t assessable, but earnings generated from them are. A financial planner clarifies what’s declarable and coordinates with your accountant to avoid ATO penalties while structuring for future efficiency.
Selling assets immediately without considering CGT (opens in a new tab), failing to contribute strategically to super, or ignoring pension/entitlement impacts. Others include overcommitting to property or distributing funds informally among family. Professional advice prevents avoidable tax bills, missed compounding opportunities, and future conflicts, while creating a clear documented plan.
Protection starts with structure: separate accounts, low-risk holding options short-term, and legal documentation of ownership. Medium-term, use diversification and super contributions where tax-effective. A financial planner coordinates with solicitors to align asset titling, estate planning, and investment strategy so wealth is secure against erosion and disputes.
Do not make emotional purchases, lend large sums to relatives, or sell inherited assets without considering tax. Avoid mixing funds into day-to-day accounts. A financial planner stress-tests options and ensures you don’t lock wealth into illiquid or tax-inefficient vehicles that undermine long-term financial security.
Pause before making major moves. Open a separate account, list what’s been received (cash, property, super, shares), and check for tax implications (opens in a new tab). A financial planner helps prioritise: secure funds, clear urgent debts, then model investment or contribution strategies. Rushing risks mistakes that can’t be undone.