Rethinking inheritance: why families are choosing to give earlier

Source: Australia Overnight with Pat Panetta

Australia is on the cusp of a historic wealth transfer. 

By 2050, more than $3.5 trillion is expected to move from baby boomers to younger generations. Traditionally, inheritance has been something passed on after death. But as Dawn Thomas, Senior Wealth Adviser at The Wealth Designers , explained on Australia Overnight with Pat Panetta, that conversation is beginning to shift.

From later to sooner

Instead of waiting, more families are asking whether some of that wealth could be transferred earlier, at a time when it is most useful. With younger generations facing rising housing costs, education expenses, and the pressures of raising families, support provided today can have a far greater impact than a lump sum decades down the track.

Of course, there are concerns. Older generations often worry about whether the money will be used wisely, or whether relationship breakdowns could put family assets at risk. But with open conversations and careful structures, these risks can be managed.

The benefits of giving while living

The benefits of “giving while living” are compelling. Parents and grandparents get to see the impact of their legacy in real time. For example, funding a grandchild’s education not only supports the next generation but also frees up cash flow for parents to reduce debt or invest for the future.

Why early conversations matter

As Dawn pointed out, inheritance is no longer just about what happens after you are gone. It is about creating opportunities and stability when it matters most. Having the conversation early reduces future conflict, strengthens family bonds, and ensures wealth serves its real purpose — supporting lives well lived.