Thoughtful Ways to Pass on Your Estate

It’s always fun to joke about “spending it all before you go” – living large, ticking off the bucket list, and leaving nothing behind. But the reality for many successful Australians is that wealth often outlives lifestyle. As people downsize, travel a little less, or simply have fewer big expenses later in life, it can be surprisingly hard to spend it all, even if you try.

That means at some point, the question becomes less about if you’ll leave money behind, and more about how you want it to be used. For families in this position, estate planning isn’t just about dividing assets, it’s about shaping a legacy.

Here are three ways we’re seeing people think about their wealth:

1. Giving early to support children and grandchildren when they need it most

2. Protecting the family bloodline by safeguarding capital in trusts

3. Leaving a legacy through philanthropy, even in small ways

Strategy 1: Giving Early

We’re seeing more families choosing to give during their lifetime rather than waiting for their estate to be distributed. With Australians living longer, the age when children actually receive an inheritance often doesn’t line up with the years they need it most, such as buying a first home, raising a family, or building a career.

By gifting early, parents and grandparents can provide support at the stage of life where it has the greatest impact. It also means you get to witness the benefits first-hand, whether that’s helping with a deposit, covering school fees, or giving a financial head start.

In Australia, there’s no general gift tax, and money received as a genuine gift isn’t treated as taxable income. That means children can receive funds tax-free, making this an efficient way to pass on wealth.

The key is balance. While early gifting can be incredibly rewarding, it’s important not to compromise your own financial security. Structured, thoughtful gifts, even in smaller amounts, can strike the right balance between supporting the next generation and ensuring you remain comfortable for the years ahead.

Strategy 2: Protecting the Bloodline

Another trend we’re seeing is families using trusts to protect wealth across generations. For many parents, the concern isn’t just about passing money on, it’s about making sure that capital isn’t lost through poor money management, divorce settlements, or exposure to creditors.

Trusts offer a way to separate control from benefit. Instead of giving children a lump sum outright, assets can be placed in a trust where the capital base is preserved and only the income is distributed. This ensures that children still enjoy financial support, whether through regular income, education costs, or living expenses, without having the ability to erode the wealth itself.

This structure is especially useful if beneficiaries are young, inexperienced with money, or simply better off receiving steady income rather than large sums. It also provides a protective layer against external risks, keeping the family’s core wealth intact regardless of life’s twists and turns.

By designing a trust thoughtfully, families can enjoy the best of both worlds: beneficiaries get support when they need it, while the capital you’ve built over a lifetime remains safeguarded for future generations, even after you have passed away.

Strategy 3: Philanthropy and Giving Back

Philanthropy is no longer just the domain of ultra-wealthy families. We’re seeing more people include some form of charitable giving in their estate plans, even if it’s only a portion of their wealth. For many, it’s less about size and more about meaning, the desire to make a positive impact on causes close to their heart.

This can be as simple as leaving a modest bequest in a will to a local community organisation, or as structured as creating a family foundation that continues giving for decades. Some choose to involve their children in deciding which charities to support, turning philanthropy into a family value that is passed down alongside financial wealth.

The benefits go beyond tax effectiveness. Giving creates a sense of purpose, helps define family identity, and ensures your legacy extends beyond your immediate bloodline.

Bottom line: Keep It Flexible

No matter which strategies you choose, it’s important to remember that estate planning isn’t a one-off exercise. Life changes, children grow up, new grandchildren arrive, businesses are sold, relationships shift, and your estate plan needs to keep pace.

Reviewing your plan regularly ensures that your intentions remain aligned with your circumstances. A quick check-in every few years, or whenever a major life event occurs, can make all the difference in keeping your legacy intact and relevant.