Forman Financial Services

Aged Care Strategy – Superannuation – Contribute funds into spouse’s superannuation fund if under age pension age

This can benefit people who:

  • are residing in aged care who have a younger spouse under age pension age

Potential Benefits:

  • May increase age pension entitlement under income or assets test, as spouse’s super in accumulation phase exempt where spouse under age pension age
  • May reduce aged care fees as super in accumulation phase exempt under age pension age

Things to be aware of:

  • Non-concessional or concessional contributions caps
  • Possible entitlement to spouse contribution tax offset
  • Tax on earnings in accumulation phase (max 15%)
  • Contribution preserved until spouse meets a condition of release
  • Cashing out amounts from older spouse’s super and contributing to younger spouse’s super could be part of a recontribution strategy for estate planning purposes
  • Costs and taxes if redeeming investments to contribute to super

Aged Care & Home Care can seem complex.  We have a special offer for general advice for $225.00.
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