Included Assets

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Included Assets

I was lucky enough to inherit enough money to help 2 daughters buy houses.  For various reasons I did this as non repayable mortgages.  One was done about 10 years ago and the other about 5 1/2 years ago and none of the 'outstanding' mortgage amounts has ever been paid back so I do not nor will get any income from either. The mortgages will be forgiven on my death.
Do I have to include these mortgages included as loans?

Jill Donaldson

Robert Craven from Affinity Aged Care Financial Services has responded that the simple answer is yes.  A loan will always be considered a loan until it is either repaid or forgiven.  If the loans were to be forgiven, they would be assessed as a gift and the amount in excess of the gifting limits ($10,000 in a financial year and $30,000 in a five year period) would be considered a deprived asset.  As such the excess would be assessed under both the assets and income test for 5 years from the date of the gift.




Thanks Jill and Robert

  That's what I was afraid of:-(


I have recently moved into an Aged Care Facility. I was told that I can take $9999 out of my bank account and put it in another and call it my funeral funds. This way it wont be included in my Assetts Test. Is this correct?