2 hours ago
3
April 12, 2026 — 5:01am
I’m 58, single, and living with a cancer diagnosis that gives me about five years. I’ve never had any cancer symptoms, as such, and have felt well throughout. I am financially secure, with a small and manageable mortgage.
I have a few travel bucket-list items I’d like to tick off, but I enjoy my work and have few outside interests that I could pursue if I retired. My priority at this stage is to maximise the inheritance my two adult children will receive. Any advice?
Sorry to hear about your diagnosis, but I appreciate the reflection you’ve done on what is important to you in the years ahead, and the realisation that you want to continue working and leave a legacy for your children.
My first thought would be to understand what life insurance you hold via super (and outside super, if relevant), and when that can be claimed. With a terminal diagnosis, it may be that you can claim now, and that would be money you could set aside for your kids. If the cover needs to be retained for now, take care to ensure that premiums are up-to-date and there is no risk of it lapsing.
There will be some death benefits tax payable if your super passes to your children, so when your health significantly declines, you might want to consider withdrawing these savings and setting them aside. Earnings will then become taxable for you, so you don’t want to do this too early.
Talk with your financial planner about whether an insurance bond might be of value in your circumstance. With your children as beneficiaries, this might be a way to invest in growth assets that can pass to them without any tax consequences upon your death.
Finally, if not already done, chat with your solicitor and ensure your estate planning arrangements are in order. A testamentary trust for each of your children may be of value here to protect what you pass on.
My husband just received a $200,000 inheritance. We have two investment properties, each with mortgages. Should we pay off one mortgage in full, or split the inheritance and pay something off both? We have no debt on our home.
I’d take a step back here. Your options are far broader than debt reduction. Depending on the cash flow position of the properties, it may be that this money would be better contributed into superannuation for one or both of you.
Alternatively, if the investment properties are either cash flow neutral, or positive, and you were particularly keen on property as an asset class, potentially this money could be used as a deposit for a third investment property.
Is there a financial product that would allow us to put aside money (around birthdays and Christmas) instead of spending on toys and stuff for our grandchildren? We’d like the funds to be growth oriented (maybe shares or managed funds) transferring to the grandchild as each turns 18 years old. We would prefer that the funds are held by a third party, preferably with minimal tax consequences for grandparents or grandchildren.
Yes, insurance bonds can cover your need here. There are versions that enable you to elect a child as a beneficiary and nominate a vesting age, e.g. 18, whereupon the investment transfers to the child.
All tax obligations are paid within the bond, much the same as a super fund, so you don’t need to include any earnings in your tax returns.
Paul Benson is a Certified Financial Planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [email protected]
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.
