General Medical issues thread

[Quickstatus]

Everyone needs a home but aged care offers a 2* level hotel room (and likely 1* catering or worse) and doesn't seem like a home to me…more like a prison...

Depends on you level of independence and the NH.
It may be more appropriate to live in own home and get aged care packages to provide things like cleaners etc. UberEats is the ultimate meals on wheels

Alternatively some people take their $$$ and move to somewhere OS where there is greater purchasing power.

 

[JohnK]

You should always talk to a lawyer or accountant when selling large assets if on an aged pension. Look up "deprivation of assets Centrelink". And remember that once the home is sold the proceeds are no longer exempt and are considered non exempt assets for the purposes of calculating the OAP etc

The idea basically a person's assets should firstly go toward their care first rather than be given to someone else

Of course and we'd never do anything without legal advice.

This whole thing is a minefield. Looks like the government has forced inheritance taxes and pseudo death taxes.

Why can't mum transfer her house to her sons or granddaughter? She gets full pension and the idea that she has to live off the funds from selling house is ludicrous.

So the only thing we can do is ensure that a will is in place and up to date to avoid any sort of tax.

P.S. Ambulance came to get dad this morning. Apparently the hospital is now going to take care of putting dad into respite care or nursing home. I don't think he will go home again. Sad.

 

[Pushka]

Of course and we'd never do anything without legal advice.

This whole thing is a minefield. Looks like the government has forced inheritance taxes and pseudo death taxes.

Why can't mum transfer her house to her sons or granddaughter? She gets full pension and the idea that she has to live off the funds from selling house is ludicrous.

So the only thing we can do is ensure that a will is in place and up to date to avoid any sort of tax.

She can transfer it. It just won't be helpful in improving her financial position, at all. And a will in place does not avoid tax.

 

[Quickstatus]

She gets full pension and the idea that she has to live off the funds from selling house is ludicrous.

I'm not sure why do you think she has to sell the house?.

Selling the house while she can still live in it will actually worsen her financial position brcause instead of the house being exempt from calculating the pension, the proceeds from selling the house will not be exempt from calculating the OAP.

Wills are important but not sure that it is all that effective to reduce tax

Rather than pseudo inheritance taxes, your dad is likely to be completely supported by the taxpayer if he needs a NH. The government likely to pay for the equivalent of the NH residential accomodation deposit, and its usual subsidies over an above the 85% of the OAP that the resident is required to pay. He also still gets the OAP.

At least in Australia, NH access is not predicated on ability to pay. All NH who receive govt assistance are required to take a certain number of govt supported places.

 

[Flashback]

Of course and we'd never do anything without legal advice.

This whole thing is a minefield. Looks like the government has forced inheritance taxes and pseudo death taxes.

Why can't mum transfer her house to her sons or granddaughter? She gets full pension and the idea that she has to live off the funds from selling house is ludicrous.

So the only thing we can do is ensure that a will is in place and up to date to avoid any sort of tax.

P.S. Ambulance came to get dad this morning. Apparently the hospital is now going to take care of putting dad into respite care or nursing home. I don't think he will go home again. Sad.

Inheritance tax ...... Aussies have it easy in that regard, try getting clipped by the IHT in the UK and then come and talk to me about it!

 

[VPS]

Inheritance tax ...... Aussies have it easy in that regard, try getting clipped by the IHT in the UK and then come and talk to me about it!

It's enormous in the UK which is why some of the stately homes struggle to survive. They have a pile that is worth zillions but no cash and having to pay 48% inheritance tax is tough.

 

[Quickstatus]

having to pay 48% inheritance tax is tough.

I heard that the top gear bloke Jeremy is protesting against farm taxes

 

[VPS]

I heard that the top gear bloke Jeremy is protesting against farm taxes

and I agree with him which doesn't happen very often

 

[drron]

A report in the media today that Deloittes is recommending to the Government an inheritance tax.

Budget will remain in deficit forever without change

The Albanese government delivered the first budget surpluses in 15 years. But they may be the last according to a Deloitte Access Economics report.

www.smh.com.au

 

[Aeryn]

Inheritance tax ...... Aussies have it easy in that regard, try getting clipped by the IHT in the UK and then come and talk to me about it!

There is one weird anomaly in Australia where there is a death tax by stealth and that is superannuation.

If you die with $500k in the bank you can via your will leave it to anyone and the receiver pays no tax as its is treated as post tax income (of course they will pay tax on any subsequent interest they earn).

But if you die with $500k in your super account and don't have a dependent spouse or dependent child (per the ato definition no longer considered dependent once 18) and want to leave that $500k to you adult child or sibling or friend then they will have pay tax on the portion over $200k (the amount of tax is dependent on their other income).

This stealthy death tax discriminates against those without dependents; and is BS are you have paid contribution tax on that super and also earning tax on that same super whilst in the accumulation phase and you didn't have a choice as the govt forces you to have super.

Personally I dont think parents owe their adult children any sort of inheritence, Im fine if my parents need to sell or reverse mortgage their house at some point to live a decent lifestyle as they age further. They have wills, advanced care directives, POA and pre-paid funerals in place which is great; if there is nothing extra left for me and my siblings so be it.

 

[andye]

There is one weird anomaly in Australia where there is a death tax by stealth and that is superannuation.

If you die with $500k in the bank you can via your will leave it to anyone and the receiver pays no tax as its is treated as post tax income (of course they will pay tax on any subsequent interest they earn).

But if you die with $500k in your super account and don't have a dependent spouse or dependent child (per the ato definition no longer considered dependent once 18) and want to leave that $500k to you adult child or sibling or friend then they will have pay tax on the portion over $200k (the amount of tax is dependent on their other income).

This stealthy death tax discriminates against those without dependents; and is BS are you have paid contribution tax on that super and also earning tax on that same super whilst in the accumulation phase and you didn't have a choice as the govt forces you to have super.

Personally I dont think parents owe their adult children any sort of inheritence, Im fine if my parents need to sell or reverse mortgage their house at some point to live a decent lifestyle as they age further. They have wills, advanced care directives, POA and pre-paid funerals in place which is great; if there is nothing extra left for me and my siblings so be it.

They may not have paid any tax on the capital gains though, nor any tax on any gains in a retirement income stream (and [except for non-concessional contributions] the tax that has been paid is 15% only).

Someone has to pay for the aged care. It's either the person themselves or the tax-payer. Political decision on who it should be and on which section of society contributes to the tax base.

 

[andye]

Cruise.
Have met several Americans who have done just that. Cruising on Silversea was less expensive than aged care.

Yes, but as you'd know, the vast majority of people who are in aged care either need 24-hour supervision or can't mobilise.
Cruising is not a bad alternative to a retirement village, if you've got most of your marbles and don't need personal care, but I tend to think retirement villages are a pretty expensive way to get some housework and company

 

[Pushka]

They may not have paid any tax on the capital gains though, nor any tax on any gains in a retirement income stream.

Someone has to pay for the aged care. It's either the person themselves or the tax-payer. Political decision on who it should be and on which section of society contributes to the tax base.

But you are paying CGT through your super funds Capital gains tax is withheld by Super companies when in the super phase. An estimate of this tax is retained for future needs by the super companies. It's invisible. You don't see it. It is10%. When you convert to pension phase, any 'left over estimates' that aren't needed for the transfer are then transferred as cash to your pension accounts. The super funds try make it sound like a gift. It isn't.

 

[andye]

But you are paying CGT through your super funds Capital gains tax is withheld by Super companies when in the super phase. An estimate of this tax is retained for future needs by the super companies. It's invisible. You don't see it. It is10%. When you convert to pension phase, any 'left over estimates' that aren't needed for the transfer are then transferred as cash to your pension accounts. The super funds try make it sound like a gift. It isn't.

Agreed (hence the "may") but 10% (minus the "gift') is a pretty low rate of tax. Can also be avoided with SMSF and some of the industry direct investment options

 

[Quickstatus]

Should NH, inheritance tax and other related discussion be moved tobetter thread/s?