1st Mar 2017
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Age Pension: will transfer of home ownership reduce pension?
Human hand add a coin in the final row of coins over red house

Anne is separated from her partner and about to take full ownership of their jointly-owned home, but she's concerned that her Age Pension will be reduced. Is this the case?

Q. Anne
I separated from my partner several years ago. He has been living in his own house and I am staying in the house that is jointly owned. I am on the full Age Pension and, due to poor health, I asked him to transfer his half share of our jointly-owned house to me for future medical expenses, so I’ll fully own the house in which I’m living.
Will this reduce my current Age Pension?

A. Under the asset test, the value of your principal place of residence, if you own it, is exempt. It does not matter if this is valued at $500,000 or $5 million.

Therefore, if you take full ownership of the house, the full value will simply be exempt and your Age Pension should not be affected.

However, you should confirm your circumstances with Centrelink.

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    COMMENTS

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    Watto
    6th Mar 2017
    2:21pm
    I asked him to transfer his half share of our jointly-owned house to me for future medical expenses, so I’ll fully own the house in which I’m living.
    ????????? Why Is she going to break off pieces of the house to pay for the medical expenses
    Just another greedy woman.
    The pom
    6th Mar 2017
    3:29pm
    It sounded a reasonable solution to me to have the wholly owned house. I don't like reverse mortgages but if she was ever in a position to need to do that she will be much better placed being sole owner.
    bob
    6th Mar 2017
    4:06pm
    sounds like very fuzzy logic
    fish head
    7th Mar 2017
    3:41pm
    Any thing but fuzzy.She is aware that she has a looming health problem that will require funding. if she owns the house there will be no need to wait and consult with her ex- who may or may not be accessible at the time. Any action will be hers to take when she needs it. Greedy? I don't think so.
    Farside
    20th Mar 2017
    12:17pm
    Transferring ownership to the ex would enable her to make quick decisions in relation to the house but also makes interesting circumstances for the partner. Presumably his share of the house was treated as an asset for pension purposes and if he relinquishes his ownership then this would no longer be the case?


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