It is really important for people, especially those with adult children, to discuss their wishes for the continuation and growth of their family wealth for future generations. We can certainly attest to the importance of this with our own client experiences.
We all know the media love to paint a picture of doom and gloom, so allow me to brighten your day with a more positive view of the world.
The Department of Human Services (DHS) uses what’s called ‘means testing’ to calculate the rate of Age Pension entitlement and eligibility of Australians. In other words, the value of assets you own affects whether you can get an Age Pension and how much you can get. Your income can reduce your pension too. DHS applies the income and assets test to each pension applicant and adopts which ever test results in a lower pension entitlement payable. These tests are important to make sure the system is as fair as possible (easier said than done).