Elsie* recently moved into an aged care home, leaving behind her home. This big change brought new financial challenges, and handling her money became very tough. The Public Trustee was appointed to support Elsie manage her finances and making the best decisions.
To best support Elsie, her Client Account Manager (CAM) sought financial advice to see what could be done with her home. The aim was to keep her aged care fees low, ensure she was getting the correct benefits from Centrelink, and invest her funds wisely. The advice suggested changes to support Elsie by giving her a regular, tax-free income from an account-based pension.
The advice recommended Elsie make a downsizer contribution. This means using money from selling her house to fund her pension. This was especially important because Elsie was over the age to make voluntary contributions to her superannuation. However, there was a problem. The title of Elsie’s old home had been temporarily transferred out of her name, which made her ineligible for the downsizer contribution.
Understanding how crucial this income source was for Elsie, the Public Trustee team didn’t give up. They got help from a tax professional who looked into Elsie’s unique situation. Together, they gathered all the necessary information and applied to the Australian Taxation Office (ATO) for a Private Ruling. If approved, this ruling would allow Elsie to make the downsizer contribution despite the temporary title issue.
The Public Trustee team worked hard, following up and ensuring everything was in order. Their persistence paid off when the ATO approved the Private Ruling. This allowed Elsie to proceed with the downsizer contribution.
Now, Elsie receives a regular tax-free income from her pension, which lowers her tax bills. Her aged care fees are manageable, and she gets the full benefits from Centrelink. Elsie can now focus on her well-being without worrying about her finances.
*Name changed for privacy
81% of clients are satisfied with how Public Trustee manages their financial affairs – Myriad Research, Independent Client Satisfaction Report 2024
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