Description
With the cost of living on the rise, it’s natural to want to give your children a helping hand financially. This article discusses important points to consider before gifting money to family, including implications on your future retirement savings and tax obligations. A case study is included to illustrate the importance of having the right protections in place.
Introduction
According to Finder.com, 44% of Australian parents feel the urge to subsidise their adult children’s lifestyles.
Besides helping with expenses such as university fees, utilities bills, etc., as home ownership moves beyond many young peoples’ reach, parents provide a leg-up into the housing market.
It’s natural to want to ensure your children’s financial security, regardless of their age, but is it possible to do so without sacrificing your retirement situation?
We say yes, but consider these points first:
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