What to do with an inheritance.
An inheritance can change what is possible for a family. The decisions made in the first year often shape what it becomes — for you, and for the generation after you.
There is rarely a need to act quickly.
Keep the money somewhere safe and accessible while the estate is finalised. Then decide what the money is for, where it should be held and how it fits with what you already own. Invest it to a plan, over a sensible period, rather than all at once.
Give it time
Estates often take many months to finalise, and the months after a death are not the time for long-term decisions. Holding the money in cash or a term deposit for a period is a decision in itself, and usually a sound one.
Decide what it is for
Reducing debt, helping the children, funding retirement or long-term investment. Most inheritances end up doing more than one job, and each job needs a different approach.
Decide where it should sit
In your own names, a family trust, a company or super. Each affects flexibility, protection and what happens when the money passes on again. If a new company or family trust is the right home, we can arrange the set-up.
Fit it with what you already own
New money can quietly add risk you did not intend, such as more of the same shares or more property in the same market. The inheritance is planned as part of the family's whole position, not as a separate pot.
Invest to a plan
Put the money to work over a sensible period, against a written strategy, and review it as markets move and circumstances change.
Inherited shares and property.
Many estates pass on assets rather than money. The question is whether each one still belongs in your portfolio. A holding chosen thirty years ago may still be sound, or it may now be too concentrated, too light on income or simply unsuited to your plans.
A share portfolio
We review each holding on its merits, not out of loyalty or habit: concentration, income, quality and fit with your plans. Then we decide together what to keep, what to sell and when.
Property
A family home or investment property is often the largest single asset in an estate. Whether to keep, rent or sell it depends on what the rest of your wealth needs to do.
A family company or trust
Interests in companies and trusts do not always pass through the will. We work through how they are held and controlled, alongside your lawyer and accountant.
Selling an inherited asset can have tax consequences, so we work with your accountant before anything is sold.
When it is time for advice.
Some inheritances are simple. Families usually bring us in when one of these is true.
The amount is significant
Enough to change what is possible for the family, and enough that a poor decision would be costly.
It is not just cash
Shares, property, or an interest in a family company or trust, each needing a decision on what to keep.
Several people are involved
Brothers and sisters inheriting together, a surviving partner, or a wish to help the next generation as well.
A clear plan for the inheritance, and for the family.
We are not constrained by any one product, manager or asset class. Our advice is built around what the money is for, and how it fits with everything else the family owns.
A written plan
Prepared for your family, covering structure, asset allocation, timing and how each part is handled. It is personal advice, prepared for your circumstances.
Implementation, done for you
We put the plan in place: accounts, transfers, sales and the portfolio itself.
A broad choice of managers
Access to a wide range of fund managers and asset classes, chosen for your plan rather than for any one product.
Your advisers, coordinated
We work with your accountant and lawyer, so each decision is checked against the whole picture.
Regular reviews
Online access to your portfolio, and a review each year and whenever markets or life change.
We work with your accountant.
An inheritance touches the estate, the accounts and the investments at the same time. Each decision is checked against the whole picture before it is made.
Murdoch Gatti
Founder and Private Wealth Adviser. In financial markets and wealth management since 2006. Master of Commerce (Finance) and Diploma of Financial Services (Financial Planning). Host of The Rate of Change podcast, in conversation with fund managers, economists and business leaders. You work directly with Murdoch.
Authorised Representative No. 001007979 · About York
Executor and lawyer
Administer the estate, and prepare wills, powers of attorney and any legal documents.
Your accountant
Looks after your accounts and tax returns. We work with them before anything is sold or moved.
York
The investment strategy, any new company or trust, and how the pieces fit together, coordinated with the advisers you already have.
Receiving an inheritance.
The questions we are asked most often by families who have received, or expect to receive, an inheritance.
I have received an inheritance. What should I do first?
Usually, nothing quickly. Keep the money somewhere safe and accessible while the estate is finalised and the family has time to think. Then work through it in order: what the money is for, where it should be held, and how it fits with what you already own.
How long should I wait before investing an inheritance?
There is no fixed rule. Many families hold the money in cash or term deposits until the estate is finalised and they have decided what it is for. After that, investing over a period, rather than on a single day, reduces the risk of poor timing.
Is there inheritance tax in Australia?
No. Australia has no inheritance or estate tax. Capital gains tax can apply when inherited assets are later sold, so we work with your accountant on your position before anything is sold.
Should I pay off my mortgage with an inheritance?
Often it is part of the answer. Paying down a home loan reduces both risk and interest costs. Whether to repay all of it depends on your other goals and how much flexibility you need, so it is worth deciding before the money is invested elsewhere.
Should I keep my parents' shares?
Sometimes. Review each holding on its merits, not out of loyalty or habit. Look at concentration, income, quality and whether it suits your plans, and we work with your accountant before anything is sold.
Should I pass some of it on to my children?
It depends on what you want to happen if circumstances change. A gift is simple, but once given it is generally theirs. A documented loan keeps more control. More on gifts and loans to children.
What do families who handle an inheritance well do differently?
- They take time before acting.
- They write down what the money is for, so it does not slowly disappear into everyday spending.
- They plan it alongside the family home, super, the business and existing investments.
- They record whether money passed to children is a gift or a loan.
- They update their own wills, powers of attorney and super nominations, because an inheritance changes their own estate.
The most common mistake is investing an inheritance all at once in whatever is being promoted at the time.
Do I need a financial adviser for an inheritance?
Not always. For a modest sum with a clear purpose, it may be simple. Advice adds most when the amount is significant, when shares or property are involved, when several family members are affected, or when the inheritance changes your retirement or estate plans.
Who do you help?
Adult children receiving an inheritance from their parents; a surviving partner taking over the family's investments, sometimes for the first time; brothers and sisters who inherit together and need to decide what to keep; and parents who want an inheritance to help the next generation as well. We work with families in Sydney, Brisbane and Noosa.
How are your fees set?
Fees for advice, and for any company or trust we set up, are agreed in writing before any work begins. A first conversation is complimentary and carries no obligation. Details are in our Financial Services Guide.
General information only. This page has been prepared without taking into account your objectives, financial situation or needs. Before acting on it, consider whether it is appropriate to you in light of your objectives, financial situation and needs. York does not provide tax advice; we work with your accountant on your own position.
Three steps, at your pace.
There is no obligation at any stage, and no recommendation is made until you engage us in writing.
01 A first conversation
Twenty to thirty minutes, complimentary, to understand your family and whether we are the right fit. A rough picture of what you own is enough.
02 A written plan
If we proceed, we agree the fee in writing first, then prepare a written plan for your family.
03 Put in place, and reviewed
We implement the plan and review it with you each year, and whenever markets or life change.
Start with a conversation.
If you are considering a long-term advisory relationship, the first step is a 20–30 minute conversation to understand whether we are the right fit for you and your family.
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