Equity Investment Financial Asset

Equity Investment Financial Asset

by Christine Hopper

Equity investment financial asset at Centrelink

For Centrelink means testing purposes, your equity investment financial asset is included with your other financial assets. Your total financial asset value is then used for DSP and Age Pension means testing. When you own or are beneficially entitled to an equity investment financial asset then it would be counted at Centrelink.

Equity Investment Financial Asset

Some ownership structures for your equity investment financial asset

You could own your equity investment financial asset as listed securities held directly in your own name. This type of holding is clearly an equity investment financial asset for Centrelink purposes.

But you might prefer to have an equity investment financial asset in the form of an equity investment managed fund interest. You buy units in an equity investment managed fund and the managed fund buys the listed shares. Centrelink treat your managed fund units as a financial asset. The Centrelink treatment is the same for equity investment financial assets held directly as for equity investment financial assets held via a managed fund.

When the equity investment financial asset is held in a family trust

You might think that you do not actually own the equity investment financial asset because it is held in a family trust. But Centrelink could count the equity investment financial asset as part of your financial assets if you receive the benefits of ownership of the equity investment financial asset.

If you contributed the money for the family trust to buy the equity investment financial asset but you do not get any benefits from the family trust Centrelink could look very closely. Consequently, Centrelink might include the family trust assets in your financial assets.

Another outcome could be that Centrelink treat you contribution to the family trust as a gifts. Remember that Centrelink include any ‘excess gifts’ in your financial assets.

When someone else partly owns the equity investment financial asset

If your domestic partner owns an equity investment financial asset then it would be counted as a ‘financial asset’ when you apply for a Centrelink benefit. Centrelink means tests are based on the total assets of the couple. Likewise assets owned jointly by the two members of a couple are counted in the total financial assets of the couple.

If you own an equity investment financial asset jointly with someone else then Centrelink would only count your share as part of your financial assets. For example, if you and your brother jointly own a parcel of listed shares then only your half would be counted in your financial assets.

When the equity investment financial asset is held by a deceased estate.

When the executors of a deceased estate are really slow about distributing financial assets then Centrelink might start counting the potential inheritance as an asset of the beneficiairies.  If you are entitled to half of an estate that includes an equity investment financial asset then your half share might be counted in your financial assets for DSP or Age Pension means tests soon after you could have been paid your inheritance.

Updating the value of your equity investment financial asset at Centrelink

An equity investment financial asset declared in the assets part of your application for a Centrelink benefit remains on your data file. When Centrelink review your means tested benefit entitlements, the value of your equity investment financial asset will be updated. Centrelink would apply a recent unit market price to the number of units recorded on your asset data file.

Remember it is your responsibility to inform Centrelink of any changes in your equity investment financial asset pile. If you buy some more equity investment financial assets then you need to update your Centrelink record. If you sell some equity investment financial asset then you need to tell Centrelink where the money went; another equity investment or home renovations or holiday or cash gifted or whatever.

Equity investment financial asset in Centrelink means tests

Your equity investment financial asset is included in your total assets for the DSP and Age Pension Asset Tests. If your total assets exceed the Asset Test Allowance for your personal situation then the Asset Test could reduce your single rate DSP or Age Pension by three dollars per fortnight.

Your equity investment financial asset is included in your total financial assets for income deeming purposes. If your total income including any deemed financial income exceeds the Income Test Allowance for your personal situation then the Income Test reduces your single rate DSP or Age Pension by fifty cents for each extra dollar of income.

Help with Centrelink DSP and Age Pension Income Tests and Asset Tests

Help is available. Christine at Financial Care Services is experienced with Centrelink financial asset definitions, means tests and Pension Applications.

Financial Care Services offers Short ‘personal financial factual information only consultations’ to help you check your financial position against the means tests for an Age Pension, DSP or a Carer Payment.

If you think that you might be eligible for a part Pension or Carer Payment you can call Christine on 03 9808 0338 to arrange a Short Consultation to check your position.  Short ‘personal financial factual information’ only consultations’ are limited to 45 minutes in person or by telephone and/or email. Please ask for a special ‘personal financial factual information only consultation’ when you book your appointment.

Short ‘personal financial factual information’ only consultations’ are limited to estimating your potential Pension amount and do not allow for any element of ‘financial advice’. Financial Care Services charges professional hourly rate fees for all consultations that include financial advice and/or discussions about your financial position.

To prepare for your Age Pension Short Consultation email now for the Financial Care Services Age Pension Data form. You will also receive the Financial Care Services Financial Services Guide including the Financial Care Services Privacy Policy.

Christine could also assist you with collating your personal data, estimating how much Pension you could expect to receive and completing the Centrelink forms for you to sign. Normal hourly rate consultation fees apply for assistance with personal data collation, completing Centrelink forms and attendance at a Centrelink office with you.

Financial Care Services your independent financial adviser

Financial Care Services is an independent aged care financial advisory service specialising in aged care entrants and Centrelink Pensions.

Christine at Financial Care Services assists financial advice clients to use their assets to support their preferred lifestyle.  Help is available for seniors moving to  lifestyle community retirement villages, regulated aged care, private supported living arrangements or downsizing.  Seniors who just staying home as retirees are most welcome.

Financial Care Services core value in financial advice is to assist with your money plan in the responsible management of your assets to generate the cash flow needed for your lifetime planning. Christine at Financial Care Services understands both the DVA and Centrelink Pensions systems and the Commonwealth aged care fee arrangements.

If you would like further confidential, independent and professional advice about Centrelink, lifestyle or financial issues please contact Christine Hopper 03 9808 0338 or email your enquiry.

Disclaimer:
The information contained in this website is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility. Financial Care Services is licensed to provide financial advice to individual clients based on their personal situations.
All eligibility for Commonwealth benefits will be determined by Centrelink or DVA, based on your personal position as documented and the legislation and Regulations in force at that time.
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To make an appointment for professional advice, call Financial Care Services 03 9808 0338