Hi there,
Hoping someone might have some suggestions on our options with the following scenario.
We want my elderly mother to move in with us. She will live in the granny flat behind our PPOR.
My father is in a nursing home.
When my parents pass away their house (humble house, great location) will be left equally to all five of their children.
I then plan to buy my siblings out of their shares in the place as I want to keep the place as an IP to develop later (none of my siblings are interested in taking up this option).
How can my parents keep the house without it affecting their full pension?
Thanks in advance for any help.
Carlin
Hi Carlin
I think the rental income may affect the pension, but will depend on the circumstances. You should ring Centrelink and talk to one of the financial 'advisors' there. They should be able to assist.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The way I read it, you don't plan to rent out the property until your parents pass? The issue as I read it is that having a house that your mother is not living in may affect the pension.
You would need to check with Centrelink and see if their PPOR is still classified as a PPOR if they aren't living there. As long as it isn't being rented while they are living elsewhere, hopefully there shouldn't be a problem, but Centrelink have funny rules. Best to check it out with them.
Centrelink changed the rules several years ago. Previously to the rule change Nan & Pop would ask a grandaughter/son to move in with them prior to them moving to an aged care facility. They could then claim that their house was occupied and could not be sold in order to pay the large aged care facility bond.
However, now a person must show proof of residence for 5 years in that home before it can be exempt from sale.
Get everything in writing from Centrelink, ask for the operators name and each phone call has a call log number which should be recorded as well.
Talk to a your accountant.
If your Mum does move in to an aged care facility in the future (plans change) then the property will have to be sold unless the family can come up with several hundred dollars. Good luck.
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