To help a friend

[agent 86]

This is to help a friend.

She is 67, a widow, and in a “full care high respite” nursing home as a result of diabetes having lost a leg and now virtually blind. Her only income is the small rent from her PPOR plus the Blind aged pension.

Her 2 properties are in the Sunshine/ Cooloola Coast area, Queensland.
She purchased a large house block (still vacant) in her own name only, for $14,000 1982.
Current est value $290,000 2005.
Also a waterfront PPOR, with her late husband, for $51,000 1983. Current est value $520,000 2005.
This property is still in their joint names even though he died in 1993.

She wants to sell the PPOR (too far away) (currently rented for only $130. pw as is in need of much work/repairs) and get another house/( PPOR?) very close to the nursing home she is in so as her family (4 adult children/partners and her grandchildren) have somewhere to stay when they visit her.
She in turn can get “maxi cabs” to do drop off/pick ups to her family in a “family home” environment when they visit, rather than the nursing home.

Will she be up for any CGT ?
She is currently doing a “Will” and would like to know if there will be any other implications.
Is it best for her to buy another PPOR in her name?
Any advise/ opinions to pass onto her would be much appreciated.

Thanks
A86

 

[Twitch]

Definitely no CGT as they were both acquired pre CGT laws (1985??).

 

[Okanemochi]

Yep, as long as she had the prperties in her/their names before 20th Sept 1985 then she will avoid paying a cent of CGT..

 

[coffee]

A few quick thoughts..

If she sold her PPOR, then where will the income, currently from her PPOR property come from to pay for her accomodation in “full care high respite” nursing home" as i'm sure a nursing home acomodation will increase during her time there.

I would be more inclined that she has cash flow sorted out so it will pay for her acomodation at the nursing home, till when ever..

Then look at a property for her families to stay at when visiting. When one of the family visits, she could have a room in the property so she has more quality time with the visiting family.
She then could returning to the nursing home once the family members finished there visit & have gone home.

If buying a property near the nursing home, i'm sure a family member could pick her up, so saving her cost on cab fairs..

Geoff

 

[Garry K]

This is to help a friend.

She is currently doing a “Will” and would like to know if there will be any other implications.
Is it best for her to buy another PPOR in her name?
Any advise/ opinions to pass onto her would be much appreciated.

Thanks
A86

Hi

Aged Care and associated issues is an area I have a bit do with, and it is quite complex.
If she receives the age pension, or part, it is further complicated.

In regard to the will, the implications can be dramatic.
She really needs to get professional advice from a Lawyer who specialises in Estate Planning, and possibly financial advice from an experienced adviser.

How she ultimately wants to dispose of her assets on her death could determine what she does now. A Trust now or a testamentary trust might be considered.

Good luck.

GarryK

 

[agent 86]

mdk92,Okanemochi,coffee,Garry K,

Thanks for your replies.

coffee

If buying a property near the nursing home, i'm sure a family member could pick her up, so saving her cost on cab fairs..

Is difficult as she is basically wheelchair bound hence the need for experienced "maxi cabs" drivers (maxi cabs are the van type ones in which the passenger stays in wheelchair). Actually not that big a cost anyway as it wouldn't be regular (only when family are there) and would be only a short distance.


Garry K

Aged Care and associated issues is an area I have a bit do with, and it is quite complex.
If she receives the age pension, or part, it is further complicated.

Your not wrong GarryK! One of her daughters has POA (Power of Attorney) and needs to discuss this with someone.

Garry K

In regard to the will, the implications can be dramatic.
She really needs to get professional advice from a Lawyer who specialises in Estate Planning, and possibly financial advice from an experienced adviser.

Any recommendations GarryK or anyone? Will pass any details/ info onto her and daughter.

A86

 

[agent 86]

One of her daughters has POA (Power of Attorney) and needs to discuss this with someone.

Any recommendations GarryK or anyone? Will pass any details/ info onto her and daughter.

Still hoping for one or two referrals/ recommendations from Somersoft board.

Should they be Qld based?

A86