Hello
My elderly mother (in her 90s) receives a Government pension plus income from a defined benefit super scheme. Annually she needs to submit a tax return and each year she gets approx $3k as a return.
She is quite frugal but likes to give her kids and grandkids money at birthdays and Christmas (usually $50-100 each). Over the last couple of years she has given me most of her tax return money because I help her lodge her tax return and given my brother $10k for a medical procedure he had to have.
I know that she can gift $10k per year and a max of $30k in a rolling 5year period. I have some questions that I would appreciate some help with:
Q: In giving me $2.5k and my brother $10k last year, has she exceeded her $10k limit? What are the implications of this to her?
Mum wants to give me some more money to even-out what she has given me and my brother, but I’m concerned that this will push her beyond the $10k per year, and maybe beyond the $30k in the last 5years.
-Can she gift more money I.e. $5-10k to me without impact under the gifting rules?
-Does $200 here and there to different family members get counted in the $10k limit, noting this is mostly for birthdays and celebrations?
-What are the implications to her of exceeding the $10k per year and $30k in 5year limits?
Also of note, I am her enduring power of attorney when she passes.
Thankyou. Any guidance would be appreciated.
5,630 views
1 replies