My Dad recently passed away leaving my Mum as sole Beneficiary. There was some money in a joint Bank account and some more in Dad's own name.
My Mum is already in a Nursing Home and suffering from Dementia. Will the money transferring from Dad's single name to Mum require a re-assessment of Mum's pension and whose responsibility is it to commence any necessary review ?
Also if Mum was to gift some of the money to siblings, what limits apply without impacting her pension.
Thanks.

Hey Ken,

Sorry to hear that news. Usually when getting the pension a couple is assessed together on assets outside the family home.

Obviously the couple limit is higher than the individual. Have a look on the Centrelink website.

As for gifting money you can BUT Centrelink only allow a reduction of your asset based of a certain amount each year. So give away 100k does not mean reducing your assets for the means test for 100k

Hope that helps.

AJ

Hi Ken,

Sorry to hear about your loss and I hope your family is doing well.

In regards to Centrelink entitlements, the requirement is to notify them within 14 days of any changes in assets so your mother will now need to be assessed as a single pensioner meaning her income/assets limit will decrease so it is best to get this looked into.

In regards to gifting there is a limit of $10,000 per year and $30,000 over a 5 year rolling period, so check with a professional about transferring assets and ensure this also wasn't done in previous years.(Centrelink record these things)

It is best to speak with an Aged Care specialist to see if there will also be any impact to the nursing home assessment.

Hope this helps.

Thanks,

Ron

Ronald Pratap | Principal Financial Adviser
RP Wealth Management
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