Your money Q&A with Noel Whittaker
Q MY husband and I are on a part-pension and everything we have is in both our names. In my husband’s will he has left an investment to his son. We can’t give it to him yet in case my husband needs it for aged care. If my husband dies before me, can his son have the investment, although it is in both names, or do I have to keep it for him until I die? It is also in my will that he has it.
A IF the asset is in joint names it will pass to the survivor irrespective of the instructions in the will. Changing the name of the holder to tenants-in-common will enable 50 per cent of the investment to be bequeathed to your son when one of you dies. Then when the other spouse dies the remaining half will go to the son. I suggest you talk to a solicitor who specialises in estate planning.
Q I HAVE been employed intermittently since my official retirement three years ago, aged 65. I receive payment from an allocated pension and a part-pension. Problem is, my super has been rolled into the allocated pension so I no longer have a super account to contribute to.
As a result, each time I work I must start a new super fund as fees deplete any super contributed by other employers. If I withdraw contributions and close the account a substantial amount is taken from my meagre contributions in closing fees, resulting in copious paperwork for what often amounts to a balance of about $16. Is there a solution?
A MOST super funds offer an accumulation mode and a pension mode. I suggest you talk to your pension fund and see if they have this option available.
Q I HAVE turned 65 and am still working, albeit semi-retired. Does Centrelink have a scheme whereby you get a financial bonus every year that increases for each year you work?
A THE pension bonus scheme is no longer available; it has been replaced by the work bonus scheme. This increases the amount an eligible pensioner can earn from employment before it affects their pension. The first $250 of fortnightly employment income is not assessed and is not counted. The bonus operates in addition to the pension income test-free area.
- Do you have a question? Send to Q&A, PO Box 130, Wyong NSW 2259 or email edit@thesenior.com.au A selection of questions will be covered in this column. Personal replies are not given.
