selling my residential unit

I'm 72, single, pensioner living alone in my only unit since 2003 in Qld. I decided to sell my mortgage free unit max $500k to pay $240k entering fee for a retirement unit and pay $200k to my 2 adult children($100k each), and keep the rest in bank account (term deposit) for my emergencies and funeral expenses. I have no other assets rather than a 2012 car worth $9k.

FYI: my daughter is single,non homeowner lives in Qld, my son is married, homeowner, lives in US.

Q = 1- Is it ok to transfer funds to my kids before I die? if not, what is the obligation and how can be resolved?

2-Will they be exempted of paying tax for my contribution from selling my only residential unit (after 17 years) the same as my CGT exemption?

3- To live in a retirement home, will I be considered by centrelink as a homeowner or non-homeowner?

Would you let me know what are the best option I could have to do my wishes.

Than you in advance

Colin

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Q1.It's your money, you can do what you like with it.

Q2. Yes, no CGT for either of you.

Q3. Paying $240k to enter a Retirement village, you will be considered a Homeowner by Centrelink.

Your Pension will reduce somewhat due to gifting the $200k to kids. In the eyes of Centrelink, you can gift $10000 in one financial year, so the $250k ($190k gift + $60K in the bank) will be a financial asset. However you can have up to $268k of assets and with the low deeming rates at the moment, the income test will not bother you either, so full pension still.


I suggest you get some proper advice about your plans and don't rely on contributors here. There are possible consequences for both you and your son in the USA. You will be sending a considerable amount overseas and there may be tax implications for him under USA tax laws. You cannot gift more than $10,000 in a year to anyone and it will have repercussions for you at Centrelink.

Thats not a simple matter to resolve and I think you need to get a proper help with that. But for now livecareer will keep you busy and maybe you'll find something interesting for yourself

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