FTB A & B and inheritance?

[Antheia]

I have been through this. I was advised to put all the money into a trust account in the name of one of my children. Centrelink cannot ask questions relating to your child's bank accounts.

[Glamourcide]

Wow, thanks for that info, ladies Definitely puts my mind at ease a little.
So basically, the sum of money in and of itself is not considered 'income', but if DH puts it in, for example, a term deposit account, the interest accrued IS and therefore must be reported to FAO? That's fine by me

Jodi, thanks so much for that excerpt, I should probably have gone looking for that myself to begin with lol - but C'Link-speak is like a foreign language to me, I've never done a tax return and have pretty much zero understanding of what constitutes taxable income etc, so I get completely baffled and give up about three lines in :/
One thing that did catch my eye, though, was that money from a 'family trust' IS counted as taxable income - would DH's inheritance fall under this instead? I just know that there is an 'estate' in MIL's name and that everything in it is to be split between DH and BIL... I have no idea what the difference is between a family trust and an estate :/

Oh wow. I'm so dumb lol. Sorry for the stupid questions!

[Visitor7]

Wow, thanks for that info, ladies Definitely puts my mind at ease a little.
So basically, the sum of money in and of itself is not considered 'income', but if DH puts it in, for example, a term deposit account, the interest accrued IS and therefore must be reported to FAO? That's fine by me

Jodi, thanks so much for that excerpt, I should probably have gone looking for that myself to begin with lol - but C'Link-speak is like a foreign language to me, I've never done a tax return and have pretty much zero understanding of what constitutes taxable income etc, so I get completely baffled and give up about three lines in :/
One thing that did catch my eye, though, was that money from a 'family trust' IS counted as taxable income - would DH's inheritance fall under this instead? I just know that there is an 'estate' in MIL's name and that everything in it is to be split between DH and BIL... I have no idea what the difference is between a family trust and an estate :/

Oh wow. I'm so dumb lol. Sorry for the stupid questions!

That's ok hun. I worked there, so I know where to look and how to speak their lingo
Thanks BG, had a feeling that was the case but couldn't remember!

I have been through this. I was advised to put all the money into a trust account in the name of one of my children. Centrelink cannot ask questions relating to your child's bank accounts.

I found this from another thread which BG answered:
your best bet is to be upfront on all accounts. childrens bank accounts shouldn't impact your payment however it will depend on how that account is set up in regards to access as some people will squirrel away money for themselves and put it under their childs name. so long as you have a paper trail of where the money is coming from and can confirm it's money for your child (and if any large amount is spent, you can confirm how) you should be fine with it having no impact - but when you do your next interview with c'link, take the details in - if you show them the info you've done all you can kwim?
~ taken from this thread: https://www.bellybelly.com.au/forums...k-account.html

[Glamourcide]

Okay, I'm back again, with pretty much the same questions!! Erg. I'm sorry, I've just been making myself sick to the stomach the last few days worrying about this, I would love some advice :/

Well, it's been dragging on (still!), but in about 4 weeks' time, DH will be getting his money. As far as I know (and I honestly don't know much), this could be as much as $150k. The house has been paid off and MIL's parents have transferred DH's half into his name on his behalf, so DH is now half-owner of this house. I'm just screwy with this because the house ownership is technically within THIS financial year (and I'm worried about having to pay back money to C'Link), and the money bit will be in NEXT financial year.
I just got a letter from C'Link asking me to fill out the amounts of money to estimate this year's income, I'm just taking a guess as DH has done a lot of overtime lately, and it didn't ask anything about assets like the house - do I need to notify C'Link of that? Will this year's estimate effect next year's estimate (ie would I technically be 'lying' if I didn't include the inheritance in the estimate for next year, which they've requested, or can I just change my estimate WHEN we get the money)?

I'm sorry, I just don't understand any of this... I know DH is paying to get his tax done professionally this year due to all the changes and what not, I'm going to see if I can pay to get a tax return for myself done as well - I've never lodged one before as I've not worked enough to even bother, really - I'm just paranoid that C'Link is going to see that DH owns half the house and got a bit of money and that they'll cut me off completely and I'll have to get a job to pay the bills that my FTB A & B are currently paying
I'm so confused and worried!! Sorry to ask dumb questions

[Lulu]

I have been through this. I was advised to put all the money into a trust account in the name of one of my children. Centrelink cannot ask questions relating to your child's bank accounts.

Oohhh, I'm not sure about that. Hopefully BG or Jodie can deny or confirm but if the trust earns money it can be considered income for the child and affect the FTB entitlement.

[Antheia]

Oohhh, I'm not sure about that. Hopefully BG or Jodie can deny or confirm but if the trust earns money it can be considered income for the child and affect the FTB entitlement.

No, i made sure that it doesn't incur interest.