Another topic that whilst doesn’t relate to tax specifically, but we have observed some horror stories where beneficiaries have historically failed to notify Centrelink they are potential beneficiaries of testamentary trusts and were later subject to audit by DSS
Whilst it may seem to be a financial windfall to receive an inheritance, it is important to consider the impact on the beneficiary’s Centrelink entitlements if they are receiving or are hoping to qualify for Centrelink benefits.
Centrelink entitlements of a person who is the trustee of a testamentary trust also can be affected even if the trustee doesn’t benefit under the trust. Centrelink rules are definitely not simple and BNR does not offer financial planning advice. We therefore strongly recommend that beneficiaries or trustees receiving or hoping to apply for a Centrelink benefit seek relevant financial advice.
Feel free to contact our team should you want to discuss this topic further and potentially have clients who may be in this situation.
This publication is not intended to be and should not be used as a substitute for taking taxation advice in any specific situation. The information in this publication may be subject to change as taxation, superannuation and related laws and practices alter frequently and without warning. Neither BNR Partners Pty Ltd, our employees or agents are responsible for any errors or omissions or any actions taken or not taken on the basis of this publication.