Gifting Assets During Your Lifetime

Gifting assets during your lifetime is a strategic way to manage your wealth, protect your legacy, and support your loved ones. This guide explores what assets can be gifted, techniques to transfer them effectively, and the benefits of gifting during your lifetime. Whether it’s cash, real estate, or securities, a well-planned gifting approach ensures your assets are preserved, distributed according to your wishes, and can even foster family harmony. 

What Are Giftable Assets? 

Giftable assets include a variety of property types that you can transfer to beneficiaries during your lifetime. These commonly include: 

• Cash 

• Real Estate (residential and commercial) 

• Personal Property (e.g., jewelry, vehicles, collectibles) 

• Intellectual Property (e.g., copyrights, trademarks, patents) 

• Business Interests 

• Superannuation (retirement savings), under specific strategies 

• Securities (e.g., bonds, stocks) 

Techniques for Gifting Assets to Heirs During Your Lifetime 

• Direct Gifting: The simplest method, where ownership of assets like cash, personal property, or securities is transferred directly to the recipient. This approach is straightforward but may have tax implications. 

• Gifting Through Trusts: Establishing a trust, such as a Family Protection Trust, allows you to control who receives assets and when. Trusts also protect assets from creditors and lawsuits. 

Benefits of Gifting Assets During Your Lifetime 

• Asset Preservation: Placing assets in a trust or gifting them outright can protect them from creditors or legal claims. 

• Family Harmony: A structured gifting plan can help prevent future disputes among beneficiaries by clarifying your intentions. 

• Control and Flexibility: By establishing a trust, you can dictate how and when assets are distributed, ensuring your estate is managed according to your wishes. 

Distributing assets during your lifetime in Australia offers numerous advantages, including safeguarding them and fostering family harmony. By taking a proactive approach, you can retain control over how your assets are distributed and ensure they align with your wishes. Structures like trusts not only provide added layers of protection from creditors but also guarantee that your legacy is managed in the way you intend, creating a lasting impact for future generations.