Inherit money

Hope some one can help. Relation died last year, did not feel that I could travel to to the U.K. 2 Daughters went in my place and knowing I will get  some money when it is sorted, I said I would give them what they spent on  fares  and a bit more. $10.000 each.  I have already helped another with $5.000. So  do I have to ring Centrelink when money arrives,  it will be a one off payment  to me.  Will I have to pay tax as it will be $25.000,  $5.000 over what is allowed for the year.  Thanks in advance .    bluebird

8 comments

 

Hiya bluebird, click on this link and scroll down to the heading “What doesn't count in the income test”

https://www.humanservices.gov.au/individuals/enablers/lump-sums-while-income-support/28961

You may find what you’re looking for.

Hi Abe, Thanks for that , have printed out so will read later.   bluebird

It will be considered gifting, basically it is added to your financial assets for 5 years. The frst $10k will be disregarded though.

Hi McDaddy, Thanks for that, thats good if the 1st  10k is disregarded, thanks again.

Can't you organise for it to be payed into one of your daughters bank accounts, and sort it from there.

Cash is king!

So as soon as your inheritance hits the bank you have 14 days to report it to Centrelink. If you are on a full pension the first $150,000 should not affect your pension with a reduction unless the total of your assets exceeds the thresholds for Income and Assets Tests.

Thanks everyone  but I think I have it under control now.  Done lots of reading. Thanks once again. Cheers bluebird.

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