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.
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18-09-2013 15:57 #1
Anyone work for centrelink? Question re: receiving life insurance funds
18-09-2013 16:11 #2Senior Member
- Join Date
- Jan 2009
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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