Mo Money #458 Inheritances taxes, asset protection, and investing
Jul 10, 2025
Explore the vast $3.5 trillion wealth transfer from Boomers to younger generations. Learn about the hidden aspects of inheritance taxes in Australia and strategies to protect family wealth. Discover how to have meaningful conversations with parents about inheritance to avoid conflicts. The importance of informed investment choices and legal structuring is highlighted for lasting financial health. Unlock insights on managing inherited wealth and reducing tax burdens effectively.
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Inheritance Tax Complexity in Australia
- Australians face significant tax implications when inheriting assets like property, shares, and superannuation, despite no direct inheritance tax.
- Understanding post-1985 capital gains tax rules on inherited investments is crucial to optimizing inherited wealth.
Use Equity to Grow Wealth
- Consider keeping inherited investment properties and borrowing against the equity instead of selling immediately.
- This strategy can lead to greater long-term wealth through reinvestment and compounding growth.
Superannuation Tax on Inheritance
- Superannuation death benefits tax can apply up to 30% for non-dependent beneficiaries, notably adult children.
- The tax treatment depends on the super's components, significantly affecting inheritance value.