Gifts or Wills: How to Pass on Your Wealth in a Way That Truly Matters

Wills and Estates: 21 April 2026

Author: Caroline Harley - Our People

Deciding how to pass on your wealth is rarely a dry, purely financial exercise - it’s often layered with emotion, family politics, unspoken expectations, and, occasionally, a touch of drama.

Whether you give during your lifetime or leave everything neatly packaged in your Will can shape not just your legacy, but the relationships you leave behind.

For many Australians, the question isn’t if they should pass on wealth, but how to do it in a way that avoids resentment, maximises impact, without sparking a family showdown worthy of a Netflix series.

This article explores both options, with real-life examples and practical guidance to help you strike the right balance.

Giving Gifts While You’re Alive

There’s something undeniably satisfying about watching your generosity unfold in real time. Lifetime gifting - known legally as inter vivos gifts - lets you see the fruits of your hard work make a tangible difference.

Take Mrs Boomer, aged 68. She gifts her daughter $50,000 toward a house deposit. Instead of waiting years, her daughter steps into homeownership sooner, avoiding rising property prices and years of renting. Mrs Boomer doesn’t just give money - she witnesses a milestone.

While this gifting is common from the bank of "Mum and Dad", it may also come from Grandparents, Great Aunts and Uncles and other family members that are evaluating how their wealth is used in their golden years.

In rare cases where children have become wealthy through fame or business success, they may be the ones doing the gifting.

Case Study: Dwayne “The Rock” Johnson

Few stories capture the emotional power of lifetime gifting quite like Dwayne Johnson’s. In 2018, he surprised his mother, Ata Johnson, with a fully purchased home. This gesture was deeply personal and the culmination of years of struggle and gratitude.

Johnson has spoken openly about his family being evicted when he was a teenager. For him, buying his mother a home wasn’t just a gift - it was closure, security, and a symbolic act of rewriting their past. Reports suggest he told her she could choose any house she wanted, placing control and dignity firmly in her hands.

The impact was immediate, profound, and widely shared. She experienced stability and joy in the present, while Johnson witnessed the emotional payoff firsthand.

This kind of gifting highlights something a Will simply cannot replicate: timing. Sometimes, the when matters just as much as the what.

Pros of Giving Gifts While Alive

• Immediate impact: You see your wealth improve lives now, not later.

• Emotional reward: Few things rival witnessing a loved one benefit directly.

• Control and flexibility: You decide the timing, amount, and purpose.

Cons of Giving Gifts While Alive

• Irreversibility: Once given, assets are no longer yours.

• Family tension: Unequal gifts can trigger arguments or quietly breed resentment.

• Financial risk: Over-gifting can compromise your own future security if the future costs of living or health care increase.

Leaving a Will: Planning for the Future

A Will is your final word - your structured, legally binding plan for what happens after you’re gone. It offers clarity, but not immediacy.

When done well, a Will can preserve harmony. When done poorly (or not at all) it can unleash chaos. Our Wills & Estates team regularly handles disputes that arise between siblings or beneficiaries of an estate, especially in cases where the deceased did not leave a Will.

Case Study: Prince

Consider the late musician [Formerly Known As] Prince, who died without a valid Will. What followed was years of legal battles, competing claims, and significant depletion of his estate through legal costs. His legacy became entangled in courtrooms rather than preserved for loved ones.

Another example was Aretha Franklin, who left multiple handwritten Wills. Instead of clarity, her estate faced confusion over which document reflected her true intentions. The result? Disputes, delays, and unnecessary expense.

Both cases highlight a simple truth: a Will is only as effective as its clarity and currency.

Pros of Leaving Assets Through a Will

• Legal certainty: Clear instructions reduce ambiguity and disputes.

• Protection for dependents: You can appoint guardians and structure inheritances.

• Strategic planning: Wills can incorporate tax and asset protection strategies.

• Comprehensive control: Ideal for managing complex estates.

Cons of Leaving Assets Through a Will

• Delayed benefit: Loved ones may need support long before inheritance arrives.

• Risk of challenges: Disgruntled family members can contest your decisions.

• Costs and delays: Probate and legal fees can reduce the estate’s value.

Combining Gifts and Wills: A Smarter Strategy

For many, the most effective approach isn’t choosing one over the other - it’s blending both.

Lifetime gifts can address immediate needs: helping children into property, supporting education, or easing financial pressure during key life stages. Meanwhile, a well-drafted Will ensures the remainder of your estate is distributed thoughtfully and fairly.

This dual approach allows you to enjoy the emotional rewards of giving while maintaining long-term structure and protection.

In the UK, the 40% Inheritance Tax that applies to some estates creates a strong incentive for lifetime giving as part of estate planning. In Australia the absence of an inheritance tax reduces this specific tax-driven motivation, although other factors such as Capital Gains Tax, aged care rules, and family support goals still influence decisions around early wealth transfer.

Finding the Right Balance

There’s no one-size-fits-all formula, but a few guiding principles can help:

• Start with your own security: Never gift beyond what you can comfortably afford.

• Be consistent - or transparent: If gifts aren’t equal, explain why. Silence can breed suspicion.

• Use your Will strategically: Reserve it for significant or complex assets.

• Communicate early: Conversations now can prevent conflict later.

• Review regularly: Life changes - your plan should too.

Legal and Financial Considerations in Australia

Australian law is state based, but adds another layer of complexity:

• Family provision claims: Certain family members and individuals may be eligible to challenge a Will if they feel inadequately provided for.
  
• Look-back scrutiny: Large gifts made shortly before death may be examined in estate disputes.
  
• Capital Gains Tax: Gifting assets like property may trigger tax consequences.
  
• Stamp duty: Transferring property isn’t always as simple as handing over the keys.

This is where professional advice is essential. A lifetime of hard work, investing (and a little bit of luck) to end up with the wealth you have now, can come under significant pressure, friction and costs if your estate planning and specific wishes are not clearly defined.

It’s More Than Money

At its core, this isn’t just about wealth, it’s about your legacy. It’s about whether you want to witness your impact or leave it as a final act after the curtain has come down.

Getting it right helps to manage expectations, avoid conflict, and shape how you’ll be remembered. And in the end, that’s worth more than money.