My uncle lives in my grandparents house which was left 50/50 to him and my Mum when my grandparents passed - my Mum and Dads pensions are being reduced each time Centrelink review their assets as the value of the property has increased - My parents are in their late 70s and my uncle who has never moved out of home and is single has no idea of the impact to my parents. Is there any way that my parents can pass their share of the property over to us while they are alive so that they can manage ?

Hi Narelle,

Sorry to hear about your parents dilemma as this has happened to a number of my clients and what needs to happen is one of a few things which may involve an uncomfortable chat with your uncle:
1. Discuss covering rent for 50% of the property or the potential reduction in lost Centrelink entitlements.
2. Discuss selling the asset now and splitting the proceeds to allow for equal share in the property so your parents are not disadvantaged.
3. Come to a suitable agreement that suits all parties.

It is best to seek some Advice on this as it could get messy and lead to some resentment down the track. The other issue you may run into is splitting of Assets if God forbid something happened to your parents and the benefits pass onto you while your uncle is still in the house.

In regards to gifting assets- Centrelink have allowable limits to pass on for each recipient and this would not be suitable depending on the amount of the share. As discussed it is best to seek some legal advice or Tailored financial Advice if you would like to know your parents options further.

I hope this helps.

Thanks,

Ronald Pratap
Principal Financial Adviser
RP Wealth Management
Level 2, 351 Oran Park Drive, Oran Park 2570
T: 02 9188 1547 M: 0434 502 079
E: ronald.pratap@rpwealthmanagement.com.au
W: www.rpwealthmanagement.com.au
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