Hi all - not sure where to put this question so will put here.
My father, single as mum has passed away is also retired in his early 80s is single and has an ok amount to cash in the bank. He is now in an aged care facility and his pension covers his living costs at the facility and he as a little over to spend on small things. The money he has in the bank is earning some interest.
He has raised the question of gifting to me and the other 2 children.
I know the published rules. But he wants to gift more than this. When I call Centrelink - I've spoken to 3 people - none of them can tell how much gifting more will affect his pension.
So, for example:
Dad has $250,000 in the bank
Gifts $50,000 to each child = $150,000.
Leaving $100,000 remaining.
How will this affect his pension for the next 5 years?
Will they base his pension on $250,000 instead of $100,000 and thus continue getting the same payment as now, or will that change?
No one at Centrelink can tell me this.
----
The other options is a loan of $50,000 to each child (based on the example above). Does anyone know the rules around this? I appreciate a formal agreement must be in place between each child and parent. However, is there rules on the term and how much needs to be paid back etc.?
Thanks for your help in advance.
My father, single as mum has passed away is also retired in his early 80s is single and has an ok amount to cash in the bank. He is now in an aged care facility and his pension covers his living costs at the facility and he as a little over to spend on small things. The money he has in the bank is earning some interest.
He has raised the question of gifting to me and the other 2 children.
I know the published rules. But he wants to gift more than this. When I call Centrelink - I've spoken to 3 people - none of them can tell how much gifting more will affect his pension.
So, for example:
Dad has $250,000 in the bank
Gifts $50,000 to each child = $150,000.
Leaving $100,000 remaining.
How will this affect his pension for the next 5 years?
Will they base his pension on $250,000 instead of $100,000 and thus continue getting the same payment as now, or will that change?
No one at Centrelink can tell me this.
----
The other options is a loan of $50,000 to each child (based on the example above). Does anyone know the rules around this? I appreciate a formal agreement must be in place between each child and parent. However, is there rules on the term and how much needs to be paid back etc.?
Thanks for your help in advance.
