As we grow older, we need to think about our estate and how we would like it to be distributed when we die. However, it is also important to consider how the bequest itself could impact our spouse’s current government entitlements.
As the asset cut-off point to be eligible of a pension has increased as of 1 July 2018, more Australians are now eligible to either a full or part Age Pension.
It is however important to understand how the asset cut-off points for single people and couples differ. This could ultimately impact pension entitlements should you or your spouse die.
When making a Will, most couples opt for a simple Will that leaves all of their assets to their spouse. However, this could mean that when all of the assets are transferred into their spouses’ name individually, they may exceed the single person’s asset cut- off point, which would mean losing their entitlement to a pension.
We all want to make sure our spouse is looked after when we die. But we also need to make sure that it does not remove their current entitlements by default.
If you would like to discuss the implications of your current Will, amend your existing Will or make a new Will that protects your spouse’s interests, give us a call to speak with an experienced estate lawyer.
Check out this recent article which discusses the importance of estate planning.