How to Help Your Children Now, Not After Death: A Practical Guide

How to Help Your Children Now, Not After Death: A Practical Guide

The Inheritance Paradox: Help Arrives When No Longer Needed

Your child needs €25,000 for a mortgage down payment now, at age 32. Not in 20-30 years when they inherit your apartment and will be 55-60.

"I'd like to leave something behind, or help my children."
— Typical wish of parents

The problem? According to Eurostat statistics, the average age of inheritance in Central Europe is 52-55 years. By that age, most people have their own housing, children grown up, and major life decisions behind them.

Paradoxically, children need the most help at ages 25-40 — when starting families, buying first homes, launching careers.

The Harsh Reality of European Property Markets

Property Prices Have Exploded

According to National Bank data, property prices across Central Europe have risen 150%+ in 10 years:

  • 2014: Average price per m² in capitals was €1,500-2,000
  • 2024: Average price per m² in capitals is €3,500-4,500

For a 65m² apartment this means:

  • 2014: €100,000-130,000
  • 2024: €230,000-290,000

Banks Require High Down Payments

Banks now require minimum 20% own resources (LTV limit 80%). For an apartment costing €250,000:

  • Own resources: €50,000
  • Plus fees and furnishing reserve: €10,000-15,000
  • Total: €60,000-65,000

Young People's Incomes Don't Allow Saving

Average net salary for 25-34 year-olds is approximately €1,400-1,600. After deductions:

  • Rent: €650 (capital city average)
  • Utilities, internet: €100
  • Food: €250
  • Transport: €80
  • Other: €150

Left for saving: €200-300/month

To save €50,000 at this rate would take 15-20 years!

Three Scenarios: What Can You Do?

Scenario 1: Traditional Inheritance — Wait

Leave everything to children after death. It's the most natural and common approach.

Risks:

  • Inheritance disputes: Statistics show 30-35% of inheritance proceedings end in family disputes
  • Procedural costs: Notary fees, legal costs, potential court proceedings
  • Time: Inheritance proceedings last 6-18 months on average
  • Too late: Children receive help when they no longer need it

Scenario 2: Gift from Savings

Give children money from your own savings.

Problem:

  • Average savings of people 55+ are only €8,000-15,000
  • 75-85% of wealth is "frozen" in property
  • Gifting savings endangers your own financial security

Scenario 3: Unlock Property Value (HomeGrif)

Convert part of property value to cash — for children and yourself.

How it works:

  1. Sign contract with HomeGrif
  2. Receive lump sum payment (up to 30% of property value)
  3. Use part as gift for children
  4. Receive regular monthly rent for yourself
  5. Stay living in your apartment

Real-Life Example: The Horváth Family

Starting situation:

  • Parents: Maria (67) and John (69), retirees
  • Living: 3-bedroom apartment, 72m², value €210,000
  • Combined pensions: €1,050/month
  • Daughter Eva (34): Married, 2 children, renting (€720/month), wants to buy
  • Son Peter (31): Single, works in IT, renting

Problem:

  • Eva and husband found apartment for €195,000
  • Need €39,000 as own resources (20%)
  • Have saved only €12,000
  • Parents have no savings to help

Solution with HomeGrif:

  • Parents signed contract with HomeGrif
  • Lump sum payment: €52,000 (25% of property value)
  • Gave Eva €28,000 for mortgage down payment
  • Gave Peter €24,000 for future housing fund
  • Parents receive monthly rent of €620
  • Total monthly income: 1,050 + 620 = €1,670

Result after 1 year:

  • Eva and family living in own apartment, payment €650 (less than rent was)
  • Peter has security for future
  • Parents living with dignity, traveling, helping with grandchildren
  • Everyone satisfied — no disputes, no tension

Why Resolve Inheritance While Alive

1. Help When It Has Greatest Impact

€20,000 for a 30-year-old has far greater impact than €100,000 for a 55-year-old. Young person:

  • Gets mortgage with lower payments
  • Builds own housing instead of paying rent
  • Has stability for starting family

2. Conflict Prevention

You decide the division — transparently, fairly, during your lifetime. Psychologists say open communication about wealth is key to preserving family relationships.

3. You See Results of Your Help

You can enjoy children's successes — seeing grandchildren in their own home, daughter without rental stress, son with security for future.

Conclusion: Your wealth has greatest value when helping the living, not when divided after death. With HomeGrif you can help children now while maintaining dignified life in your own home.

Sources: National Banks, Statistical Offices, Eurostat, Ministry of Justice

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