Women, Inheritance & the Midlife Money Transfer

There’s nothing more awkward than talking about inheritance. It’s emotional, it’s tied up in family history, and of course it arrives hand-in-hand with grief. The issue here is we leave it too late to have the conversations we need to have.

So how do we start those open conversations? Because inheritance is shaping the financial future of Australian women and we need to be ready.

The $3.2 Trillion Question

Australia is on the cusp of the largest wealth transfer in history. Somewhere between $3.2 and $5 trillion will pass from one generation to the next over the coming decades, and women will inherit around 65% of it.

Why? Because women live longer. By the time people reach their 80s, there are one-third more women alive than men. And thanks to the “eldest daughter effect,” we’re not only inheriting we’re also the ones managing our parents end of life (care / aged care etc) and then their estates.

The Productivity Commission reports the average age of an inheritance recipient is 50 years old. That means money is often used to patch holes like paying down mortgages, covering retirement shortfalls, or simply keep life afloat (ie debt / cost of living) rather than to create long-term transformation.

Inheritance, Couples & Divorce

Inheritance isn’t just an individual issue either.  If you have a significant other in your life it has an impact on both opf you. 

Should an inheritance be “ours” or “mine”? Should it pay down the family mortgage, or be set aside for security? These questions become even sharper in second marriages or blended families.

Divorce adds another layer. Around 10,000 couples divorce in Australia each year, and billions of dollars shift hands through settlements. Sometimes inheritance is included in the property pool, sometimes it isn’t. Either way, money meant to secure your future can end up caught in the storm of separation. This is where a Testementary Trust can protect inherited assets from a former spouse. A Testementary Trust  is established at death and allows for the management and distribution of assets to the beneficiaries according to the will's instructions. It will potentially offering greater control and protection than a simple will by protecting vunerable beneficiaries. 

The Sandwich Generation Squeeze

You might understand the sandwich already!  You’re supporting ageing parents on one side, and adult children on the other while trying to secure your own future in the middle.

This is a really stressful time, and we do not always make the best decisions under stress. Having those difficult conversations before we get to the care stage.  This may come hand in hand with financial control of your parents assets. Again difficult situations can arise from this, including living inheritances. 

Parents are giving money now instead of leaving it later. The Bank of Mum and Dad is now the ninth biggest lender in Australia. It helps some people buy homes earlier. Are we doing it to our own detriment? The upside? They get to see their kids enjoy it. The downside? They may short-change our own retirement, reduce Centrelink or aged care entitlements, and spark sibling resentment if the gifts aren’t equal.

Before giving, the golden rule is simple: secure your own safety net first. Without it, you may end up depending on the very children you were trying to help.

Finding the Right Advice

Managing all these situations well requires good professional advice and right now, that’s harder than it used to be. That means your own financial education and understanding is more important than ever, so that when you seek that advice you have a basic knowledge of what is going on. 

Since the move to fee-for-service financial planning, the number of advisers has dropped from around 28,000 in 2018 to about 15,000 today. Only 21% are women.

So how do you find the right adviser?

Ask:

• How do you get paid?

• Do you work with women in midlife?

• Is your scope of advice limited in any way?
• Are you confident to advise on aged care and financial power of attourney situations? (I have found over the years there are planners that specialise in this space).

• How do you handle ethical or impact investing?

• Can you explain complex strategies in plain English?

• Whatever else you need to ask (remember - it is YOUR money)

A good adviser should make you feel bigger, not smaller. And sometimes the best approach is a money coach + adviser combo one for behaviour and mindset, one for technical expertise. Advisers can be restricted in their scope of advice and that needs to be understood as well. 

The Tax Trap: Myths & Truths

Australia doesn’t have an inheritance tax, but that doesn’t mean your inheritance is tax-free. This is correct at the time of writing but double check on the ATO website: 

• Myth: Selling an inherited property always means CGT.
  Truth: If it was the deceased’s main residence and you sell within 2 years, usually no CGT. Otherwise, tax applies.

• Myth: Superannuation always passes tax-free.
  Truth: Not if it goes to adult kids. Up to 17% can be taxed.

• Myth: Testamentary trusts are only for the rich.
  Truth: They’re useful for ordinary families, protecting assets and distributing income tax-effectively.

Understanding these rules is the difference between inheritance helping you thrive or creating nasty (tax) surprises.

Why Conversations Matter

Here’s the part most of us avoid: talking about money.

Silence doesn’t protect families. In fact, it increases the risks of elder abuse, sibling conflict, and surprise tax bills. Open conversations about wills, property, and trusts create clarity, reduce resentment, and protect dignity.

My mum only wrote her first will at 80. My dad has been talking about his for years. And as the eldest daughter and a trained financial planner  I know how important it is to ask deeper questions.

What’s in the estate? How will it be divided? Will a testementary Trust be set up? These aren’t greedy questions, so do not be shy in asking.  These questions will protect your parents and their legacy. 

Take a notebook and ask yourself:

• What do I actually know about my parents’ wills or estate plans?

• If I inherited tomorrow, what feelings would come up first?

• How would I balance generosity with my own safety net?

• Do I understand the tax implications of property or super I might inherit?

• What conversations do I need to start now to protect my family’s future?

Women in Australia are set to inherit more wealth than ever before. But inheritance doesn’t guarantee freedom. It brings complexity, responsibility, and risk.

The choice we have is this: do we simply receive money, or do we use it to create long-term security and legacy?

Because money isn’t just numbers. It’s choice. It’s power. And it’s freedom.