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  1. #1
    Join Date
    Aug 2009
    Achievements:Topaz Star - 500 posts

    Default Anyone work for centrelink? Question re: receiving life insurance funds

    My father died 3 months ago and my mother is now on the widow allowance, this is her only income. She will be receiving funds from my fathers life insurance policy shortly (approx $90k). I am just hoping that centrelink do not cancel her benefit due to these funds. I am aware that her payments may decrease but just trying to find out how much the payment will effect her benefits. We can "gift" the maximum amount allowed as well.

    So just thought I would see if anyone on the hub worked for centrelink and may be able to provide assistance.

  2. #2
    Join Date
    Jan 2009
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    Your mum should contact Centrelink and ask them.

    It will depend whether she is a homeowner or non homeowner and what other assets she has:


    If the $90k is going to push her over the asset test, she could look at gifting within the threshold allowed. If she goes over it, then it is still counted as her asset for 5 years so no point in gifting.

    If it was insurance inside super, then the super fund may have the discretion to pay it to an adult child, but that could attract tax on the payment, and your mum would lose control of the money.

    If the amount will push her over the limit, then it might be worthwhile getting some legal or accounting advice ASAP, as one she is entitled to the money, then centrelink will likely deem it as hers.


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