Chris’s wife is soon to receive an inheritance and he would like to know of any strategy that will help him avoid missing out on the pension due to the income and assets test on this windfall.
Read: Will my mother lose her pension?
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Q. Chris. My wife will shortly receive an inheritance of $350,000.
Our current assets are just under the cut-off point for the income and assets test due to my super balance.
If we transferred this money into my wife’s super accumulation account, would I still need to notify Centrelink?
We intend to use this money at a later date to help pay for a new retirement home.
Please advise if you feel there is a better strategy.
Read: How does Centrelink assess caravans?
A. I am assuming you own the house you are living in and that is why you are concerned about the inheritance.
Super in the accumulation phase is not deemed for Centrelink purposes while you are under Age Pension age, but once you reach Age Pension age your total superannuation accumulation account balance is deemed under the Centrelink income test.
As well as being deemed, your accumulation account balance is also assessed against the Centrelink assets test, so Centrelink will need to be advised of a deposit to your wife’s super account.
Centrelink has Financial Services Advisers who can help with any questions you may have: visit Services Australia for more information.
There’s more information on the assets test here.
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