Q My parents bought their home after 1985. Mum continued living in the house until she died in 2016. The home has been left to my sister and me. We are both executors. If I buy my sister’s half of the property and move into it as my main residence, am I liable for capital gains tax later down the track if the property is sold?
A Provided the property is used as your own residence there should be no capital gains tax on sale. However, I would like to make the point to all readers that buying a property just because it was once the family home is not always a good idea. It means you forgo any other properties that may be available and that may have better potential in the long term. But only you can make that decision.
Q I AM 71 and have received a part pension since May 2015. In June my wife turns 65 and six months and her superannuation will count as part of our joint assets, which will then be slightly higher than the current limit of about $830,000, so I would lose my pension. I understood that anyone who was entitled to a pension card prior to any new legislation becoming law on January 1, 2017 would be entitled to retain their pension card. Can you advise of any actions I should consider before June to maintain my card? I know the pension payment will cease.
A The Pensioner Concession Card was only reinstated to those whose pension was cancelled on January 1, 2017, due to the rebalancing the assets test measure. People not affected by this measure on January 1, 2017, and whose pensions were cancelled for other reasons or after this date, are not entitled to the card unless they qualify under the current income and assets tests. Individuals can discuss a change of circumstances with the Department of Human Services and can also access the department’s Financial Information Service. More information is available at humanservices.gov.au – search for Pensioner Concession Card.
Q I Have willed my estate to my four children. Unfortunately, one has died. He has a daughter and was separated from his wife for about 10 years. Would my estate go wholly to the three remaining children or would the daughter or former wife have a claim if I left the will unchanged?
A This is a complex issue, and unless you take the right precautions the estate could be challenged, which could incur heavy legal costs, a lot of worry, and much time. I suggest your best course of action is to speak to a solici tor who specialises in estates planning. It will be money well spent.
