Hi. Where to start?

[y-pool]

Hello, I am looking for some advice.

I am a 64 year old former mine worker retired due to ill health, my combined asbestosis and sillicosis will not kill me soon, but I am very unlikely to make it to 70. The home I inherited from my parents is large enough for my three grandchildren and my one daughter to stay with me for a few weeks each school holidays and is probably worth around 300k.

My payout from the mine has grown slowly to a little over 700k in cash earning a pathetic 6.3%. I also have nearly 190k in a super fund. I have always wondered about property investment, but never gotten around to it. The gains on properties around here have been amazing.

I was recently widowed and now my focus has become making sure that I can pass a reasonable inheritance to my beautiful grandchildren. Can anybody suggest ways to be certain I will pass on a reasonable inheritance to them. What should I do?

Thankyou all in advance,

Yanni

 

[wylie]

Hi Yanni.

What an awful thing to have those illnesses, and I hope you do have lots of years left to be able to watch your grandchildren grow.

My first thought was that you have already got a good amount that (I imagine) will go to your daughter - well over $1M already.

We have always invested in property, but my thoughts were not what you should do with the money but how to make sure it goes where you want it to go eventually.

With that in mind, maybe you should try to make sure that the inheritance stays with your bloodline. You don't mention whether or not your daughter has a husband or partner. Either way, I would be looking at maybe moving your assets into a trust so that they cannot be claimed down the track by anyone other than those who you want the money to eventually go to.

My parents are in the process of doing just this, to keep their hard worked for assets in their bloodline. They have set up a trust and will be moving assets into the trust over time to ensure they benefit us when they are gone, but also in the event that one of us is divorced or dies, and our husband/wife remarries, the assets are protected.

Not a nice thing to have to think about, but necessary.

All the very best for the future.

Wylie

 

[BV]

Hi Yianni,
I am sorry to hear about your ill health.
I guess with cash in the bank and super you won't be eligible for the age pension. However, if you invest them and the returns are only covering the mortgage repayments then I am guessing that you could be eligible.
I think you should see a financial adviser.
Good luck
Bill