Hi. I reside in Queensland, Australia.
My father-in-law died recently leaving a valid Will which divides his estate (consisting of $400k in cash) equally between his son and daughter (my wife).
My wife wants to pass some of the money on to our two children ($50k each) in such a way that there will be minimum effect on our partial Centrelink age pension.
The do nothing option is to wait until the estate is settled and then transfer the money from my wife's bank account into their bank accounts.
Question 1. My understanding is that Centrelink would consider this to be gifting?
Another option we are considering is a Deed of Variation to add our children to the Will as additional beneficiaries with each being gifted $50k. The required $100k will come from reducing my wife's share of the estate. The Will will then have four beneficiaries instead of the original two.
Question 2. Will this also be considered by Centrelink to be gifting even though the money is not going through my wife's bank account?
Question 3. Are there any other options we should consider?
Brian
My father-in-law died recently leaving a valid Will which divides his estate (consisting of $400k in cash) equally between his son and daughter (my wife).
My wife wants to pass some of the money on to our two children ($50k each) in such a way that there will be minimum effect on our partial Centrelink age pension.
The do nothing option is to wait until the estate is settled and then transfer the money from my wife's bank account into their bank accounts.
Question 1. My understanding is that Centrelink would consider this to be gifting?
Another option we are considering is a Deed of Variation to add our children to the Will as additional beneficiaries with each being gifted $50k. The required $100k will come from reducing my wife's share of the estate. The Will will then have four beneficiaries instead of the original two.
Question 2. Will this also be considered by Centrelink to be gifting even though the money is not going through my wife's bank account?
Question 3. Are there any other options we should consider?
Brian
