Posted by

We’re continually told that being a Grandparent is one of life’s most rewarding phases. Spending as much time with Grandchildren becomes a top priority for most.

However, structuring your estate can be a challenging process. We’ve seen many instances where Grandparents are not entirely sure if their children can handle, or indeed, need inheritance.

A solution may be to direct your inheritance to your Grandchildren – or gift money to them.



Your inheritance means beneficiaries may enjoy a more financially comfortable life that enables them to pursue passions and interests that they may not otherwise have had the time for.

On the negative side, without proper education and preparation, substantial inherited wealth can lead to entitlement, dependence, lack of motivation and poor self-esteem.

In some occasions, it can even be the forebear to eventual financial stress.  The sons of Texas oil tycoon H. L. Hunt, whose fortune was once estimated at $8 billion, filed for bankruptcy protection in the USA in the 1980s.

As Grandparents, you can structure your inheritance so that it won’t create tax issues for you. In fact, your Grandchildren (or your own children for that matter) don’t have to know about these arrangements. You can always stipulate that the inheritance can only be provided to your Grandchildren once they reach a certain age.

It has become common for families to set age and possibly capability-related tests for access to their inheritance.  The most common age at which next-generation members begin to inherit is 25, with the possibility of some kind of phased approach up to age 35 or beyond.  By then, most children will have finished their education, have taken a few steps toward their career goals, may have been restricted to live within a budget based on their own after-tax earnings, and learned to plan accordingly before beginning to take on the benefits – and related responsibilities – of greater wealth.


Be prepared!

It’s important, as Grandparent’s to understand that the risks (or investment options) that your Grandchildren might make with your inheritance or gift, will most likely be different to the ones you might make or consider.

Your Grandchildren might be considering longer term growth so they could use the inheritance (of gift) as a kick start to a deposit for a first home, to help with University or Private school fees, a first car or a wedding.

Inheritance or gifting plans for your Grandchildren can also be completed “behind the scenes”. Given there could be multiple Grandchildren, there are strategies to ensure funds are equally allocated to each Grandchildren.

Joe Stephan


Joe Stephan graduated in 2002 with a Bachelor of Business (Fin Plan) under the tutelage of his father (Program Leader of Financial Planning at RMIT University).

You will hear Joe bandy about the idea of “pure financial advice”, which is given objectively and focused around the needs of individual and not the internal needs of the business providing advice.

Joe is realising his vision every day through his Independent Advice Firm which he owns and operates with his brother James. Joe also spends a portion of his time teaching tomorrow’s Financial Planners at various Melbourne Universities including RMIT & LA Trobe.

  • Enjoy the fruits of working life Joe & James were able to provide me with the impetus to take the next step into retirement which could have been delayed without quality financial advice. Dr. Kevin Adams Self Funded Retiree
  • Professional practice to be admired Joe & James' professional practice is to be admired. They are always there for his clients when needed. They freely pass on their expert knowledge without hard product selling techniques. Dr. Elspeth Mckay Associate Professor
  • Personal advice for complex lives Stephan Independent Advisory took the time to understand our situation & tailor their advice & solutions to our specific needs which, being a business owner, can be quite complex. Paul Marsh - Principal P2 Group - Business Owner
  • Family centered advice We have moved our investments from being a private client with a major bank to Stephan Independent Advisory in 2018. Since this move, we have been surprised at the depth of understanding encountered from Joe and James about our future plans and their ability to comprehend exactly what we wish to achieve. Mr Graham and Mrs Judith McKnight Self Funded Retirees
  • Values aligning with our own Clear, timely and direct responses in all areas of communications are outstanding. Meetings are planned and run efficiently to deliver on all our expectations. The firm’s values align to our own so that trust is readily established. Mr John and Dr Kim Watty Self Funded Retirees

It’s Never About Money

Whether you have significant financial resources and question the meaning of success or if you’re wondering whether being that little bit wealthier will make you happier this is the podcast for you.


Stephan Independent Advisory
Private Wealth Management
Suite 506, 1 Princess Street, Kew VIC 3101