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Old January 28 2013, 03:44 AM   #17
Miss Chicken
Little three legged cat with attitude
 
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Location: Howrah, Hobart, Tasmania
Re: Inheriting before a relative dies

Deckerd wrote: View Post
My parents already spend everything on their children and grandchildren. They won't have anything left. Which is the way it should be.
Does this mean that they have given away their house?

In Australia is can be hard for people to give away everything because it can affect their pension. The allowable gifting amount is $10,000 in one year, or $30,000 over 5 years. If a person gives away more than that they are treated as if they still have it as assets when it comes to determining the amount of pension they received.

When my mum was alive she had a $300,000 unit (which she lived in with my brother) and about $300,000 in investments (savings and shares). She received a part pension which was about half her income, her investment made up the rest. All told she received about $35,000 a year.
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