The OHL Wire #25

November 2016

ISSUE

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25

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Benefits and payments for senior citizens in Australia

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Same sex couples and superannuation benefits

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Leave a video message to your loved one

LEGAL - WEALTH PROTECTION - INVESTMENT - BUSINESS - LIFESTYLE - SYDNEY

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How to reduce the time of a Property Settlement during Christmas

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Car accident: what to do next?

Benefits and payments for senior citizens in Australia

Benefits & Payments

Australia has a social safety net for senior citizens that is the envy of many across the globe. But it’s not simple.

Neither are seniors, though, who are living longer, more multi-dimensional lives.

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Far from sitting on the porch in her rocker, Granny may be working part time, raising two orphaned grandchildren, one of whom has a permanent disability and looking out for a frail spouse in a nursing home. No need to visit all these misfortunes on Granny, but the point is that senior lives are complicated.

Cobbling together the best package of benefits and payments is three-dimensional chess. But the place to begin is with the basics. Those with more complicated situations may do well to seek professional assistance in navigating the maze of Commonwealth, state, local and nongovernmental options.

Income support The main form of social security assistance currently open for older, retired people is the Age Pension.

Managed by Centrelink, the Age Pension is income and assets tested, which means that the benefit to which an individual is entitled will depend on any other income is received from super, investments and paid work and on any assets owned.

In general, the Age Pension is available to resident Australians who are at least 65 years old and have lived in Australia for more than ten years.

Many seniors work past retirement age for a variety of reasons. The Work Bonus provides an incentive for pensioners to do so by increasing the amount they can earn before their pension is reduced. For those who receive eligible employment income, the adjustment is automatic.

A Pension Loan Scheme may be available for those whose capital is tied up in assets and need more income to live on. Individuals who are caring for someone with disability, a medical condition, or who is frail aged, may qualify for a Carer Payment or Carer Allowance. The individual receiving care, in concert with the caregiver, may have to consider carefully whether an Age Pension or Carer Payment is more appropriate in the particular circumstance.

Many grandparents, like our fictional Granny, above, find themselves raising grandchildren. For them, the modest, but nontaxable Double Orphan Pension may also provide valuable assistance. Crisis and special help is also available to those in immediate financial need.

The Aged Pension also provides access to a range of concessions on prescription medicines, transport and discounts at local businesses and retail establishments.

Health care

The Australian health care system provides universal access to a comprehensive range of services, including public hospitals, medical services, and pharmaceuticals. Australian citizens and permanent residents who reside in Australia are eligible for Medicare, regardless of age or retirement status.

Some healthcare assistance is more specifically targeted, including the Continence Aids Payment Scheme and the External Breast Prostheses Reimbursement Program.

In addition, the Pensioner Concession Card, the Commonwealth Senior Health Card and the Health Care Card can assist with the cost of prescription medicines and other health services for those not entitled to a an Age pension.

Support for carers In addition to the Carers Payment or Carers Allowance, most state and territorial and many nongovernmental groups have launched various support and respite programs for people who care for someone with a disability, chronic illness, dementia, mental illness, or who are frail due to age.

In NSW, for example, Carers Australia NSW works with carers to improve their health, wellbeing, resilience and financial security.

The Commonwealth also provides support and assistance to carers of the elderly, in the form of support services, including carer respite centres and carer resource centres.

Household costs and other assistance Assistance may also be available for living and household costs. These programs include Rent Assistance which is designed to give extra financial help for pensioners who rent privately. An Energy Supplement may be available to those who are receiving a pension or hold a Commonwealth Seniors Health Card.

The Australian government offers a range of services that can give seniors extra help at home. Home Support Programmes and Home Care Packages may provide domestic assistance, personal care, meal services and nursing care.

For those in nursing homes and other institutions, the Australian Government subsidises a range of aged care services in Australia. Seniors who enter an aged care home will be expected to contribute toward the cost of care by paying a maximum basic daily fee as well as a means-tested care fee. Estimates of those fees can be obtained from the Department of Human Services.

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Information and advocacy Clearly senior Australians have complicated and very individual sets of strengths and needs. A number of governmental and public agencies are ready to assist.

The My Aged Care website is a useful starting point at www.myagedcare.gov,au is a useful starting point for many resources.

Specific information about the Age Pension is available at: https://www.humanservices.gov.au/customer/services/centrelink/age-pension.

Information about the Seniors Card scheme may be accessed at: http://www.australia.gov.au/content/seniors-card .

Information specific to NSW may be found at the website for Family and Community Services: http://www.adhc.nsw.gov.au/about_us A variety of nongovernmental organizations also offer advocacy services for seniors who feel that their rights to benefits or payments are being infringed upon.

At Owen Hodge Lawyers, our attorneys are also expert in the issues facing senior citizens, If you have a question about the benefits or payments that to which you or a senior family member is entitled, please call us to schedule a consultation at 1800 780 770.

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Same sex couples and superannuation benefits

For same sex couples in Sydney, the news about superannuation benefits is far better than it used to be – but not yet perfect.

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Since 2008, for superannuation purposes, the term “spouse” has also included: - A de facto, same sex spouse, or - Someone with whom the superannuitant is in a relationship (including a same sex relationship) registered under state or territorial law.

This has important implications, both positive and negative (perhaps less so), in four situations: - When making contributions on behalf of a spouse; - With respect to your partner’s eligibility to receive benefits; - When setting up and running a self managed super fund; and - On separation and divorce.

Each situation requires some careful navigation, and most couples benefit from informed advice.

Spousal contributions Same sex partners may now direct pre-tax contributions into a spouse’s account (including the account of a same sex spouse, under superannuation law) to boost retirement savings. The partner who wants to split contributions may do so regardless of age, but the receiving spouse must be either younger than 55 or between 55 and 64 and not retired.

Same sex spouses may now also make after-tax contributions of up to $3,000 on behalf of a partner and take advantage of a tax offset of up to $540 (18 percent of $3,000) if the spouse’s assessable income is less than $1,380.

Both provisions may be extremely important for couples in which one partner has earned less over a lifetime than the other, a situation not unique to heterosexual relationships.

Eligibility to receive benefits If and when one partner dies, the other same sex partner may also be eligible to receive a tax-free lump sum payment. If paid as a superannuation pension, the benefit is also likely to be tax-free if the deceased partner was 60 or older or the surviving partner is over 60. Special rules apply to the beneficiaries of certain public sector funds.

This is an area in which the recent changes in the law are particularly noticeable. Between 2004 and 2008, same sex beneficiaries were required to demonstrate the existence of an “interdependency relationship.”

This requirement was generally thought to be an onerous and intrusive burden and led to the loss of death benefits for many intended beneficiaries.

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As with separation and divorce situations, however, a problem can still arise in proving that a de facto spousal relationship existed. Many advisers therefore suggest that a more cautious approach is to complete a binding nomination form that names the partner as the person to whom superannuation benefits should be paid. To remain valid, binding nominations must be renewed every three years, so this option does require some thoughtful attention.

Setting up and running a DIY super Suppose, however, that you and your partner have sufficient assets so that a self -managed super fund makes sense. It is important to keep in mind that: - The trustees of the fund cannot lend money to a member or a relative (including a same sex spouse) of the member; and - Anti-detriment rules may also apply to the same sex spouse as a dependent of the member.

An anti-detriment payment is an additional lump sum payment that can be made from a complying superfund on the death of a member to a: - Trustee of the deceased’s estate; - Spouse or former spouse of the deceased; or - Child (including an adult child) of the deceased.

The fact that a same sex partner may now also be a “spouse” for superannuation purposes may limit the availability of funds to that individual during the member’s lifetime. The second rule may create an opportunity that calls for some sophisticated tax planning.

Separation and divorce The inability to marry, sadly, does very little to protect couples from the perils of separation and divorce. In a de facto relationship, whether heterosexual or single sex, even an amicable split can deteriorate into a dispute about the nature of the relationship that has ended, especially when money is involved.

Superannuation benefits now play a growing role in many Australians’ retirement planning. This is as true for same sex couples as it is for everyone else. The law, however, has been in a state of flux in recent years, and careful planning is a necessity.

If you have questions about how the law affects your or your partner’s superannuation benefits, please call the experienced attorneys at Owen Hodge Lawyers at 1800 770 780. We look forward to working with you.

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Leave a video message to your loved one

Video recording devices are easily accessible to everyone today, and many people record themselves communicating all sorts of dierent things. One common trend has involved people who make video recordings specifying what they wish to happen to their money and property in the event of a death.

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These video messages can provide details on what a deceased wants to happen, but unfortunately many people are not aware that a message they leave behind may not always be legally enforceable.

Everyone needs to plan ahead for an uncertain future and prepare a plan for what will happen after their death. If you are considering creating a video message, you should strongly think about getting appropriate legal help so you can follow the process for creating a will that follows all requirements under the law. If someone you love has already passed away and you need help arguing for or against the use of a video message as a valid will, you should also consult with a legal professional.

Judges may have a hard time making an accurate assessment of whether a video creator was of sound mind at the time the video was recorded. There could also be questions raised about whether the video was made under duress.

This means that while a video might be shown to family members to try to discourage them from challenging a will, it would not necessarily have any legal effect.

Because you cannot count on a video to have any legal weight at all, it is not a good idea to make a video an integral part of your estate plan.

Owen Hodge Lawyers is here to help with estate planning and with the process of protecting your interests and enforcing your loved one's wishes after a death. Call today to learn more about the services that we can provide to you.

Instead, it is best to ensure that you have a comprehensive written will, created with the help of an experienced legal professional, which clearly defines exactly what your wishes are so there is no question about the legal validity of your written requests.

Can a Video Message be a Valid Will?

Get the help from us

In general, a video message cannot be considered a valid will if it stands alone. This is because the law requires that a will be in writing. A video message is oral, not written, and it thus cannot be classified as a legally binding will that is enforceable.

Owen Hodge Lawyers has helped many clients to prepare wills which make their wishes clear and which allow a deceased to have control over how money and property can be transferred after a death.

In some Australian States, it may be possible for those who wish their loved one's last wishes to be respected to make an argument that a video recording should be classified as a document and considered an informal will.

If you need help with the creation of a comprehensive estate plan, give us a call today to speak with a legal professional who can offer the guidance you need.

However, this is a long-shot argument and there is never any guarantee that any court in any state would view the video as a legally enforceable informal will. If there is both a written will and a video recording which conflict, it is also well settled under the law that the written will is going to prevail.

A video cannot be used to change or modify the terms of a will under any circumstances.

While a video message cannot be a stand-alone will, some people do want to use video messages to further clarify provisions in a written will that could cause confusion or that could lead to conflict among family members.

As you create an estate plan, you may want to use a video message from beyond the grave to explain why you made the decisions you did, or to provide more insight into the terms of your will. However, even this can be risky because it will be up to the judge to determine if a particular video recording should be used to argue in favor or against a particular interpretation of a written will.

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How to reduce the time of a Property Settlement during Christmas Divorce is a stressful process for all parties, especially around the holiday season.

Many people want to begin a new year with their divorce issues settled and their property settlement resolved.

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If you are committed to resolving your property dispute and reaching a settlement quickly during the holiday season as the year comes to an end, here are some tips to help:

1. Get ready to negotiate early.

You should begin the process of negotiating a property settlement as early as possible and you should be prepared and ready to negotiate as soon as you decide to end your marriage. Obtain financial records and all relevant documents right away so you are ready for effective negotiations.

2. Open the lines of communication.

You need to be ready to sit down and have a discussion with your partner. Consider what you each brought to the relationship, and sit down and communicate about your financial and economic contributions and about what you each should be entitled to walk away from the relationship with.

You may wish to work with both a lawyer and financial advisor before you sit down and talk with your partner, as well as during your discussion, so you know what your rights are under the law.

3. Bring in the professionals.

A third party can help you to keep emotions out of negotiation, and can provide you with invaluable assistance in effectively negotiating a property settlement. The advice of a professional can be essential to knowing what you are entitled to by law when a divorce occurs, so you can start off negotiations on your property settlement with a reasonable idea of what a fair settlement would be. Attorneys who are professional negotiators will also be better able to find points of accord so a compromise property settlement can be reached.

Owen Hodge Lawyers has helped many couples to effectively reduce the time it takes for a property settlement. Give us a call now so we can help you to get the process of resolving this important issue so you can move on in 2016.

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Car accident: what to do next

A car accident is a frightening experience, especially if you or someone you love has been hurt as a result of the collision. Many people are unfamiliar with the steps to take after a crash, and the uncertainty about how to respond is only exacerbated by the fear that can result after an accident happens.

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Collision victims need to make informed choices after a crash so they can get appropriate medical help, ensure their vehicles are safe, and protect their right to make a claim for insurance coverage for crash losses.

All those involved in the collision and all bystanders should move safely off the road and should try to move vehicles out of the path of oncoming traffic when possible. You should also put vehicle hazard lights on.

OHL Lawyers can provide invaluable assistance to victims of collisions so that you understand the legal processes to follow to get compensation for damages resulting from a car accident.

Assess if anyone is injured.

It is helpful to call a legal professional as soon as you can following a collision so you do not do anything to jeopardize your financial security by putting your right to insurance coverage at risk.

Steps to Take After a Car Accident To ensure you make the right choices for your health, your vehicle, and your finances after a crash, you should take these essential steps after a car accident happens:

Stop your vehicles.

You and all other drivers involved in the accident need to stop at the scene. It is a criminal offence to fail to stop after a crash, to fail to exchange contact information with other involved motorists, or to fail to render aid.

If you leave the crash scene and someone was seriously hurt you could actually be charged with an indictable offence which could carry a lengthy jail sentence or large fine. Always stop your car and talk to the other motorist- do not take a chance.

Remove vehicles from the road.

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If anyone has been harmed, call 000 for immediate medical assistance.

Contact the police.

Calling the police is not required after every accident, but is necessary for most crashes. If property damage or injury occurred, if the police are needed to direct traffic, if alcohol or drugs may have been involved, or if anyone involved fled the scene of the accident, it is especially important to contact the the police.

Obtain details and evidence from the crash.

Get the contact details and license information of other drivers involved in the accident. Get the contact information of witnesses, and take pictures of the area where the crash happened and of the damage to vehicles. All of this can later be used as evidence when you seek coverage for crash losses.

Get the help from us You should also be ready to deal with insurers who will be making decisions regarding coverage for losses. OHL Lawyers can help you with the legal processes to get compensation after a crash happens. Call OHL Lawyers as soon as possible after a serious crash to get legal help.

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What’s On in Sydney Sign Of The Times

Pottery Barn's pop-up shop

Newtown Festival 2016

20 October to 13 November 1 November to 13 November Westfield Sydney, Pitt Street, Sydney, aMBUSH Gallery Central Park, 28 Broadway, Chippendale New South Wales, Australia

13 November 2016 Camperdown Memorial Rest Park, Newtown NSW 2042, Australia

Through the intriguing work of eight photographers, Sign Of The Times showcases seemingly small stories behind urban life, seeking a way to preserve the proof of our existence in these modern concrete surroundings.

This year’s event boasts the largest and most diverse music program in the history of the festival, with four stages and more than 40 up-and-coming and established acts – from rap to rockabilly, world music to dance, kids’ disco to DJs – including The Griswolds, L-fresh the Lion etc.

Nick Cave: HEARD·SYD 10 November, from 5pm to 5.30pm 12 November, from 10am to 10.30am 12 November, from 12pm to 12.30pm Pitt Street Mall

Homeware lovers and interior addicts will be able to exclusively touch, feel and shop their way through Pottery Barn’s latest collections and the opportunity to create their dream home with their latest initiative, free in-store interior design services.

MS Sydney to the Gong Ride

Penguin Island Expedition

6 November, from 6am to 4pm Sydney Park Road, St Peters

1 November 2016 to 1 May 2017 Sydney Aquarium 1-5 Wheat Road, Darling Harbour

The MS Sydney to the Gong Ride is Australia’s largest and most respected Set to live music and percussion, community bike ride. The popular ‘Gong HEARD·SYD is an exuberant, surreal Ride’ is celebrating 35 years in 2016. and explosive performance featuring Up to 10,000 cycling enthusiasts and 60 local dancers embodying American amateurs alike, ride from Sydney to the artist, Nick Cave’s mesmerising beachside suburb of Wollongong. ‘soundsuits’ – intricate horse-like sculptures that traverse art, fashion If you’re planning to ride, register at and dance. www.msgongride.org.au

Inspired by Macquarie Island – located in the southwest Pacific Ocean – Penguin Island Expedition will create an explorer out of each and every guest as they travel in a raft through a rugged, sub-Antarctic environment at a cool but comfortable six degrees Celsius.

WORD SEARCH PUZZLE

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CALL 1800 770 780 VIEW www.owenhodge.com.au VISIT Level 3, 171 Clarence Street, Sydney NSW 2000 Level 2, 12-14 Ormonde Parade, Hurstville nsw 2220