Entities Required?
- Thread starter bsteve
- Start date
Has she passed or is she still living? ie can the will be changed to create a testimentory trust? Is your mum sole owner, TIC or JT with your father? Each answer will differ.
All owners would receive rent in proportion to their ownership interest. But they could offset rental income with expenses relating to the income.
There are no alternatives other than to change ownership. This has consequences in terms of costs and legal issues - the pension may be affected for instance.
Seek legal advice.
There are no alternatives other than to change ownership. This has consequences in terms of costs and legal issues - the pension may be affected for instance.
Seek legal advice.
Asking about entities I assume you may include a trust ?? Be very very careful here.
Dads a pensioner. He would be gifting if the property was sold to a trust (gifted is a sale in my mind - Market value applies). Not only that Centrelink would conduct a review of the trust and this is VERY invasive. If any of the kids (adults) get Family benefits this could affect them too.
There may be merits in retaining the deceased estate for a time too. That's something a lawyer would advise on but there are tax benefits in delaying making the beneficiaries the owners of the property. The estate can be stalled up to 3 years - If all consent it may beneficial
Before considering any changes I would start with the pension issues first. The (A)sset and (I)ncome may both affects his A & I tests and the effect on pension needs to be determined first. It may be manageable.
We encounter these issues all time in our aged care division of the practice.
Dads a pensioner. He would be gifting if the property was sold to a trust (gifted is a sale in my mind - Market value applies). Not only that Centrelink would conduct a review of the trust and this is VERY invasive. If any of the kids (adults) get Family benefits this could affect them too.
There may be merits in retaining the deceased estate for a time too. That's something a lawyer would advise on but there are tax benefits in delaying making the beneficiaries the owners of the property. The estate can be stalled up to 3 years - If all consent it may beneficial
Before considering any changes I would start with the pension issues first. The (A)sset and (I)ncome may both affects his A & I tests and the effect on pension needs to be determined first. It may be manageable.
We encounter these issues all time in our aged care division of the practice.
