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How to leave an inheritance to your Grandchildren, but not your adult children?

The reasons why you may wish to leave an inheritance directly to a grandchild and not your adult children are as wide and varied as the motivation to do so.

Just leaving money via your Will for a grandchild to be held in trust until they reach 21 is fraught with risks; from of a challenge to your Will through to concerns of the effects of addiction, divorce and financial mismanagement.

So to help you better understand your options, here are three key phrases you need to understand.

Are you part of the 30% of Australians who have remarried and now have adult children from a past relationship?

It's a common fact of modern life, people live longer and have more relationships.  It's not uncommon for many parents today to be part of a blended family and to each have older (and often soon to be adult) children from a former relationship.

And when it comes to making a Will, how can you be sure you're kids are not cut out of their inheritance by your new partner? Here's a strategy that might be what you're looking for.

What you can't give away in your Will and why?

To give something away, you need to legally own it first.
You'd think this would be kind of straightforward, well think again.

Now I'm not talking about the neighbour's cat who has lived with you as your adopted fur-child for the past two years or the trailer your adult son still parks at your home for temporary safekeeping, 5 years ago.

I'm talking about bigger value items we sometimes own with others and often believe we can simply give them away in our Will. (And if you don't have a Will we'd love to help you out with that too.)

A problem arises when we share ownership of assets with another party.

Most Australians report preferring to talk to their parents about sex, rather than money

When it comes to the reality of talking with our parents about money and aging, there is never really a right time. But there is probably a better time - and this is what you can do about that.

If you're part of the Sandwich Generation, there's a good chance you’ll become part of the growing number of adult children who will have to get involved with their parents' financial lives as they age.

Yet, the overwhelming majority of adult children – have not had detailed conversations with their parents about their finances, their estate wishes and plans.

One day you’ll be ready to retire (whatever that may look like)

The idea is then you can slow down (or stop) working and spend more time doing the things you enjoy. But what are your options when it comes time to access your super?

How will you be using your superannuation balance?  Lump-sum or regular income stream - or a combination of both?

Until then, many of us are also taking an active interest in our elderly parent's financial position in their retirement.  Many of us are either the paperwork or financial backup, so it pays to have an idea of what they’re working with too.

Investing in turbulent times seems to be a constant feature of investing - and perhaps this is part of the new normal

The last few months have proven a tough time for many investors and super fund members as share market volatility continues to wreak havoc on the expected performance of many investment portfolios.

In light of this, we thought it a helpful idea to take a look at four behavioural mindsets that can paralyse investors thinking when they need to be the most level headed.

The risks and responsibilities of a small business company director

The frustration for many small business owners is nobody tells you everything you need to know.

The education journey of a small business owner can be a steep one.

A key part of going into business, seems to be an acceptance of ‘always needing to learn something more' and to remember you're usually both the technician and the director of the company - a juggling act that carries more responsibility than many people initially appreciated.

This is especially true about the responsibilities of a business owner and their need to both understand and manage, the natural risks of life and business.

The problem is ignorance of what your responsibilities as a Director are, is no defence.

The changing face of work and how it will affect us all

Over the last decades, the world of work has changed dramatically. While the traditional career model of a job for life is fading, self-employment and ‘gig’ working is becoming more commonplace.

The hard reality is while the gig emerging economy promises flexibility, our banking and superannuation systems have not kept up with the changes and now only adds to the new stressors our community of casual workers is facing.

Have you ever thought about running a small business on the side while working your full-time job?

Perhaps you're already part of the new gig-economy and providing work-on-demand services back to your past employer.

For many people, working a side hustle is becoming more and more important in our growing world of temporary contracts and flexible working hours.

While providing flexibility (and promising better work-life harmony), growing a side business also requires a new business owner to learn new skills and new habits, before success arrives.

Here are some common financial mistakes time-poor new business owners can avoid.

If you're feeling like your life and business have been Kidnapped by the COVID-19 Virus, we can relate.

It's a difficult time affecting us all, and all in very different ways. The opened-ended nature of this worldwide health crisis fuels a sense of uncertainty. And this won't be the last crisis our world sees.

This changing environment can kidnap our thinking with the seemingly urgent and distract us from the still important.

And our hearts go out to the people who are not in very fortunate situations.

As we find our way through this time, we don't want platitudes and denial but on the same token, we need to find ways we can keep calm and focus on what we can control - and look for something solid.

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Drew Browne

Sapience Founder & Director.
Simplifying Financial Complexity

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