Can you put inheritance money into super?

Sue has not hit pension age but wants to know if putting inheritance money into her super will affect her husband's pension.

Can you put inheritance money into super?

Sue has not hit pension age but wants to know if putting inheritance money into her super will affect her husband's pension.

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Q. Sue
I am 60 and my husband is 70. I have not worked for two years and have been drawing down super to supplement our living expenses. My husband receives an Age Pension from Centrelink but I have not been claiming Newstart. He received an $87,000 inheritance early in the year, which we put into a term deposit that will mature in late December.

I wondered if we put that money into my super account would this be classed as a gift and would it affect his pension?  Would it affect my ability to claim Newstart? If I start receiving Newstart, could I continue to draw down my super to supplement our income?

A. If you put the money in your super it will not be counted as a gift, but because you have already started drawing down from your super that money will be included in the assets and income test. As you have already had the money stored in a term deposit, the effect on your husband's pension will be minimal as it would have already been assessed under the income and assets tests.

The money will also be included in the income and assets test for any Newstart application.

You will also be able to draw down on some of your super, but you should book an appointment to visit a Centrelink Financial Information Services officer to find out exactly how this and your other income and assets will affect any Newstart payment, if you are eligible to receive it. You can book an appointment by calling 13 2300.

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    Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.





    COMMENTS

    To make a comment, please register or login
    GrayComputing
    20th Dec 2019
    8:51pm
    NO ASSET TEST FOR A PENSION EVER AGAIN!
    A pension is not welfare.

    Now is the season for discontent, so do something about it!
    It is time to kill off this insane hugely expensive pensioner whacking bureaucracy.

    It is time for all of us (yes that means you) to rant at our MPs and Senators daily to take action for human decency and a huge stress reduction for pensioners

    Most economist say we will save taxpayers money by dropping asset testing because of the massive overheads cost in running Centrelink and the 10,000 conflicting rules.

    Hiring more Centrelink staff will only increase taxpayer’s costs for processing the creeping insane red tape monster system politicians and well paid bureaucrats have created.

    Help scrap it now. Become a hero.

    Even the UK and poorer New Zealand has a NO ASSET pension, so it is cheaper and user friendly.

    Why worry that few million$ earners get it too. That is peanuts to them, not enough for a good vintage champagne.

    Do retired and retiring people really look forward and want 100++ visits to/from Centrelink and be hassled by their crazed robo-debt scam and then waste even more time in the 3 million people waiting queues and more lost calls?

    We all (that means you) need to tell our MP and senators every day that these criminal asset tests for a pension must be dropped now.

    Does your MP really like being part of the system that allows this indirect abuse of the elderly?

    This abuse is actually sponsored by our government and forced down to Centrelink and borders on a criminal act.


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