Many people over 60 are rethinking traditional estate planning and choosing to help their children or grandchildren while still alive. This shift is largely driven by the widening gap between generations, especially around housing affordability, education costs and economic prospects.
Baby Boomers, who entered the housing market during more accessible times and benefited from favourable economic conditions, now hold a significant share of Australia’s wealth. Meanwhile, younger Australians deal with rising debt, stagnant wages and housing prices that can be up to 14 times the average income. This disparity is leading to a change in the way older generations approach wealth transfer, as they witness the challenges facing their children.
For Boomers who own investment property, high land tax and lower returns are motivating some to move away from real estate toward more diversified investment strategies. Wealth managers are seeing more older clients selling property and using the capital to help family members with education, home deposits or meaningful life experiences, while still being able to see the impact of their support.
There is also a growing view that wealth is more valuable when shared during life rather than after death. The concept of a “living legacy” reflects a change in mindset that ties financial support to timing and emotional value. Helping someone in their 30s may have a greater effect than leaving them an inheritance when they are already financially secure or elderly themselves.
Although ideas from books such as Die With Zero have inspired many, this approach is not suited to every situation. Families vary in their financial circumstances and concerns around lifespan and health costs still exist. However, there is a clear trend toward early wealth transfer as a practical and emotionally fulfilling alternative to traditional estate planning.
