Recently I met with a family about aged care needs, both parents were already in care and the family home sale is due to settle any day now…so cash will be available for the first time in a long time..
There’s ways in which we can improve their situation, with strategy and the right investments. However, two of the ‘kids’ have managed to ‘get in Dad’s ear’ about needing money to ‘help them out of a tight spot”. So Dad, being Dad, wants to help out by making gifts to the ‘kids’ to get them out of trouble, but the gifts will end up causing him trouble.
Centrelink is very clear on it’s gifting limits and what can be done without triggering an excessive ‘gift’ to be considered as a deprived asset.
Deprived assets are assets Centrelink consider you’ve deliberately given away, in excess of allow amounts, and will be counted as assets for a full 5 years from date of gift.
If your parents are thinking of making excessive gifts to ‘help the kids out’, please seek advice on how it will impact their pension and future lifestyle.
‘Helping you out’ could come back and bite them financially!
It could be worth asking a someone like me, with 20+ years of experience in understanding Centrelink’s rules, how to improve a situation.
Talks soon Gayle