Home Future payments Will my life annuity still pay me if I exceed my life expectancy?

Will my life annuity still pay me if I exceed my life expectancy?

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However, note that if these are concessional contributions, the amount is included in the annual limit of $27,500. The amount is tax deductible and would sit in their super fund as part of their overall balance.

When they decide to buy their first property, they can withdraw these assessed amounts (less 15% contribution tax if paid as concessional contributions) plus associated income (currently 3.07%) less tax (85% of concessional contributions and 100% of associated income are taxed at marginal rates, less a 30 percent tax offset) to help with their filing.

Remember, if they don’t decide to buy a home, the money will stay in their Super Fund until they buy a home or reach their retention age.

I’m 87, own my home, receive a full pension, and have $60,000 in the bank. A relative left me $300,000 in his will. If I accept this amount, will I lose my pension? What would be the maximum amount I could accept while keeping it?

If your taxable assets, including furniture and motor vehicle, were $380,000 after receiving the $300,000 bequest, you would be assessed under the assets test and you would still be entitled to a pension of 687 $.60 per fortnight plus all regular concessions.

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In other words, your pension would decrease by $7,803 per year, but you receive an additional $300,000 to compensate for that. Looks like a good deal to me.

I have a stock portfolio that has grown steadily over the years and I wonder what will happen when I die. Will my children who inherit my material assets have to pay taxes on the portfolio profits and, if so, how much? I am 64 years old and in good health, but would like to plan for the future.

Death does not trigger capital gains tax (CGT): it only transfers the debt to your heirs, who pay it if they dispose of the bequeathed property. This is why it is important to take CGT into account when you write a will because some of your beneficiaries may wish to sell their shares and some may wish to keep them.

I suggest a round table with your heirs to find out what they are likely to do with the assets upon your death. Then you could seek financial advice on whether it would be beneficial to sell some of those assets before you die and leave some money to certain beneficiaries, and leave other assets to specific beneficiaries who have expressed the desire to keep them.

  • The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. Before making financial decisions, they should always seek their own professional advice that takes into account their personal circumstances.

Noel Whittaker is the author of Simplified retirement and many other personal finance books. Email: [email protected]