Found money in house

[nevieboy]

My partner's father passed away 2 weeks ago. While cleaning the house the mother found about 50k all in $100 bills hidden under the house.
She wants to give it to my partner to put in the bank in my partners name. The problem is if she puts it in a term deposit all in one hit would it not raise some eyebrows at the bank and with the ATO.
The mother is 83 years of age and doesn't really need the money. Would it affect her pension?
The money is all legal he has been putting it all away from his pension for years. (typical Italian).
Thanks guys.

 

[explod]

My partner's father passed away 2 weeks ago. While cleaning the house the mother found about 50k all in $100 bills hidden under the house.
She wants to give it to my partner to put in the bank in my partners name. The problem is if she puts it in a term deposit all in one hit would it not raise some eyebrows at the bank and with the ATO.
The mother is 83 years of age and doesn't really need the money. Would it affect her pension?
The money is all legal he has been putting it all away from his pension for years. (typical Italian).
Thanks guys.

Cant' advise but if that happened to me I would put it into silver and gold coins and bars, as a mixed assortment and then bury it somewhere safe. Over time these metals have held value and there are no tax implications. The dealers work in cash. You could do the same with the cash but over time inflation eats away at the value. Do a bit of research on the matter, talk with some coin dealers. But above all make your own decision after you have wieghed it all up.

Just my

 

[Prospector]

It may certainly count as Mother in law's assets. It depends what other resources she has. Hmm, is there a will? The money might be the daughter's anyway - or at least half of it. Interesting - Centrelink wouldnt even know of its existence - and really, why should they when it is the result of someone being frugal. If this happened to me (I was the mother) I would give it to the daughter and I am sure they would find some ways of dealing with it.

 

[Sir Osisofliver]

My partner's father passed away 2 weeks ago. While cleaning the house the mother found about 50k all in $100 bills hidden under the house.
She wants to give it to my partner to put in the bank in my partners name. The problem is if she puts it in a term deposit all in one hit would it not raise some eyebrows at the bank and with the ATO.
The mother is 83 years of age and doesn't really need the money. Would it affect her pension?
The money is all legal he has been putting it all away from his pension for years. (typical Italian).
Thanks guys.

I can't tell you if it would affect her pension - aside from her age I don't know any other details and cannot give you advice anyways.

What I can tell you is that any cash transaction over $10,000.00 at any financial institution in Australia is meant to be logged by Austrac (Anti- Money Laundering).

If it's not illegal proceeds however why would you care? Just deposit the funds and explain that they were personal savings over time from a deceased estate. You get some weird bequests and cash turns up in safety deposit boxes and stuff all the time (sometimes years later depending upon the senility of the persons involved).


Cheers

Sir O

 

[trainspotter]

LOLOL ... what a decision to make? Why put it in the bank? Why bother telling anyone?? Use it to stuff the mattress or like explod said. Buy bullion under 10k and assortments of other income earning assets under 10k. LOLOL.

 

[adobee]

mmm... For further advise I would need to know what state you are in..
Then also the address of the property..

My suggestion is buy a boat.. you will get a better deal for cash !

 

[nevieboy]

No the mother just wants her to put it into the bank. I suppose the interest she makes on it she could use that to pay her tax bill (if any).
Could she deposit it under $10,000 increments at a period of time.
And what would be a period of time?

 

[awg]

My partner's father passed away 2 weeks ago. While cleaning the house the mother found about 50k all in $100 bills hidden under the house.
She wants to give it to my partner to put in the bank in my partners name. The problem is if she puts it in a term deposit all in one hit would it not raise some eyebrows at the bank and with the ATO.
The mother is 83 years of age and doesn't really need the money. Would it affect her pension?
The money is all legal he has been putting it all away from his pension for years. (typical Italian).
Thanks guys.

Whether it affects her Age Pension depends on whether she has other assets,
check the Centrelink website or ring them anon, to have them explain exactly how they calculate the Income test. On 80k alone, I think it will have no effect.

I agree with another poster, if Mum wants to put it in the bank, just go down and do that, they will make her fill out a form

 

[badger41]

From Centrelink age pension form:

You must tell us...within 28 days if your partner dies. (Done this?)

You must tell us if you or your partner give away assets...

My understanding would be that if your mother-in-law gives her daughter the $50K, $45K will be counted as a "deprived asset" (the rule is $5K pa, $30k over 5 years), and so will be considered as her asset for the next 5 years (less $5K pa), reducing her pension marginally. Otherwise it will simply be added to her assets and taken into account for her pension. Really little difference, either way her pension will be (probably marginally) affected. And would her daughter end up paying more tax on the income (hey, tax on
$2-3K pa income is not going to be too painful), or maybe it could help with your mortgage?

Wouldn't get too up tight about it, $500K yes - $50K no big deal. House renovations? Groceries? Trip to Italy?

From personal experience, Centrelink are great to deal with if you give them the facts, and don't try to con them. When I dropped $200K in assets during the GFC last year, I suddenly found the I could get a part age pension, so applied in person, and it was promptly granted. Might lose it soon if the market recovers further, but that's fine if it happens.

 

[tech/a]

Its cash and its family.
Keep it that way.
Say no more.
Sort it out.

 

[Tink]

Its cash and its family.
Keep it that way.
Say no more.
Sort it out.

I agree

 

[Timmy]

I agree

I am finding myself in agreement with you again.

What tech said.

STFU.

 

[Gillie]

No the mother just wants her to put it into the bank. I suppose the interest she makes on it she could use that to pay her tax bill (if any).
Could she deposit it under $10,000 increments at a period of time.
And what would be a period of time?

As long as you deposit it in the bank in increments less than $10,000 and in irregular amounts and periods, it will not attract the attention of Austrac - they monitor all three factors. E.g. it will attract their attention if you deposit $5,000 every fortnight for the next 20 weeks. This is due to the AML/CTF Act.

You can also receive gifts of up to $12,000 per year per person as well, according to the ATO. Just say your partner and you were gifted $24,000 ($12,000 each from the father before he died) - you do need to declare this on your tax return though. There's half your problem gone already....

PS this is not advice.

 

[nevieboy]

Its cash and its family.
Keep it that way.
Say no more.
Sort it out.

Derr.

 

[Gone Fishin]

As long as you deposit it in the bank in increments less than $10,000 and in irregular amounts and periods, it will not attract the attention of Austrac - they monitor all three factors. E.g. it will attract their attention if you deposit $5,000 every fortnight for the next 20 weeks. This is due to the AML/CTF Act.

You can also receive gifts of up to $12,000 per year per person as well, according to the ATO. Just say your partner and you were gifted $24,000 ($12,000 each from the father before he died) - you do need to declare this on your tax return though. There's half your problem gone already....

PS this is not advice.

Hey this is great!! I have a friend who grows some stuff on the side, maybe he can start saving for a house.

 

[Tink]

Derr.

Whats that?

In plain english, we wouldnt put it in the bank..

 

[tech/a]

Derr.

Think that was NB's attempt at making comment.
Cant wait for the rest of it.

 

[prawn_86]

Why doesnt whoever wants/gets the money just spend the cash for however long until it is all gone (on standard bills etc), and save what they get in wages or pension.

This way you dont have to declare anything and are offsetting some of the loss in inflation by getting interest on your wages that you are now saving

 

[Prospector]

Why doesnt whoever wants/gets the money just spend the cash for however long until it is all gone (on standard bills etc), and save what they get in wages or pension.

This way you dont have to declare anything and are offsetting some of the loss in inflation by getting interest on your wages that you are now saving

Yup, I could make that happen.

 

[Prospector]

You can also receive gifts of up to $12,000 per year per person as well, according to the ATO. Just say your partner and you were gifted $24,000 ($12,000 each from the father before he died) - you do need to declare this on your tax return though. There's half your problem gone already....

PS this is not advice.

Are you suggesting that if someone gives you $50,000 in one year you have to tell the ATO? Why? As long as you declare any interest it earns, and are not in receipt of any centrelink benefits, why would we have to tell them?