With property prices on the rise again, many older homeowners want to help give their kids a leg-up into the Australian property market.
But retirement experts have warned ageing parents should think twice before transferring the family home to their kids.
That’s because they risk being slapped with hefty tax, stamp duties and pension problems which should be seriously considered before making the call.
When a homeowner dies, their property can be transferred exempt from tax to heirs within a two-year time frame.
Otherwise, the transfer can result in the home landing on Centrelink’s radar for five years.
Any transfer that is not from husband to wife or part of a will can result in stamp duty – a tax charged by the State Government.
Many parents transfer homes in a bid to qualify for a part age pension, but this can only be done within more than five years of them reaching pension age.
Marinis Financial Group managing director Theo Marinis suggests it might be wisest to hold onto the property to elude the threat of hidden fees.
And don’t even think about your kids getting divorced… and the argument that can create.
