Will she lose her pension?

YOURLifeChoices subscriber Catriona would like to know how the proceeds of the sale of her mother’s home will affect her Age Pension.

Q. Catriona
My mum is thinking about selling her unit (worth about $150,000) and going to live with her son. Does she automatically lose her Age Pension and can she gift some of the proceeds from sale of her house to her children?

Catriona, under the Centrelink asset test, your mother is able to have an amount of money in the bank before her Age Pension is affected. Therefore, she may be able to invest or put the proceeds in a bank account without losing any Age Pension but this will depend on any income she currently receives and assets she already holds. Find more details on the current asset and income limits.

With regards to gifting, your mother can gift $10,000 per annum, up to a maximum of $30,000 over a five year period. If she gifts more than this, she will be in breach of gifting rules and her Age Pension may be affected. For more information on gifting, visit www.centrelink.gov.au.

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