THE GREAT KIWI INHERITANCE: GET IT BEFORE THE REST HOME DOES
New Zealand is apparently heading for a $1.1 trillion intergenerational wealth transfer.
Excellent news.
Unless, of course, you inherit it, fall in love at 72, move into a retirement village, develop dementia, give $600,000 to the children early, and discover that MSD still thinks the money is sitting under the mattress.
Suddenly that lovely family inheritance becomes less Downton Abbey and more financial squid game.
Experts say the first thing to do when you inherit a million dollars is nothing.
Very sensible.
Don’t buy a boat.
Don’t shout the family a world cruise.
Don’t give the kids “their share early”.
And definitely don’t celebrate by acquiring a new partner without first checking whether they come with hidden terms and conditions.
Because later-life romance is not just candlelight, companionship and matching mobility scooters.
It can also mean:
“Darling, I love you.”
“Wonderful. MSD would now like to see your bank statements.”
The cruelest trick is early generosity. Give the children a large inheritance before you need care and the money may be gone — but for means-testing purposes, it can rise from the grave like a financial zombie.
So the kids have the cash.
The rest home has the invoice.
And your new partner has a calculator, a lawyer and a rapidly disappearing sense of humour.
Which gives us the MEGA rule for New Zealand’s coming inheritance tsunami:
When the money arrives, do nothing.
When romance arrives, read the fine print.
And when the children say, “You won’t need all that money anyway,” change the locks.
Cupid carries arrows.
The children carry calculators.
MSD carries both.