I’m aware of gift tax re cash, but what is the rule re giving property, say a unit as a wedding present to a son. What should I take into account?
Henri in Wollongong, NSW
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Before considering a gift, it is important to ensure you have sufficient assets to secure your own retirement and needs for aged care. I have a number of clients who are overly generous without due consideration of their own financial requirements, so very important to get a second opinion on your own financial planning before gifting assets.
Gifting from a Centrelink perspective should also be considered, ideally well before you reach eligibility for the aged pension. The gifting rules are very clear for Centrelink in that you can gift $10K pa or $30K over a 5-year period without impacting your pension. If you exceed this gifting limit, which is likely if you gift a property to your son, the impact will depend on the value of the gift and your retirement funding strategy before the 5-year reset.
Given the amount of funds involved, it would be prudent to talk to your advice team including your accountant, financial planner and lawyer to ensure both you and your son structure this in the best manner possible and you fully understand any negative impacts.
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