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.

Written by Ben

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