Granny Flats: The Unseen Risks
Building a granny flat always seems like a great idea at the time. But then family strife strikes, or critical tax and Centrelink considerations are overlooked. And before you know it, that great idea has become a minefield of conflict and turmoil. Those working in estate planning, elder law, property, family law or financial planning need to be aware of the legal and financial risks that can quickly blow up in a client’s face, leaving them demanding to know why you didn’t properly warn or advise them.
Description
Attend and earn 3 CPD units in Substantive Law
This seminar was recorded in NSW on 23 November 2018
Chair: Irene Ryan, Barrister, Frederick Jordan Chambers
2.00pm to 3.15pm: Granny Flats and the Legal Perspective: The Enticing Attraction and the Perilous Risks
- Attraction of parents sinking money into a child’s home so they can live and care for each other
- How the term ‘granny flat’ can mean different things for clients, builders, local councils, the ATO and Centrelink
- Parents in a perilous position when they put money into a granny flat but are not on the legal title and where things can go wrong
- How to draft an agreement to clarify granny flat issues to prevent problems
- Case studies, examples and the real-world practicalities of how problems and disputes involving granny flats can play out in practice
Presented by Richard McCullagh, Solicitor Principal, Patrick McHugh & Co Solicitor; author, Australian Elder Law (2018), Thomson Reuters; Recommended Health & Aged Care Lawyer, Doyle’s Guide 2017
3.15pm to 3.30pm Afternoon Tea
3.30pm to 4.20pm: Centrelink, Pensions and Granny Flats
- Establishing and valuing granny flats
- Situations where Centrelink might regard money given by parent to a child to live in a house, or buying a house in child’s name, as a principle residence that’s exempt
- When and how to apply the reasonableness test
- Establishing whether a person is a homeowner or a non-homeowner for social security payments: contribution considerations
- Centrelink implications for granny flats and moving to aged care
Presented by Rob Craven, National Business Development Manager, Affinity Aged Care Financial Services
4.20pm to 5.10pm: Granny Flats: The Tax and Accounting Perspective
- The tax ramifications of the sale of a principal place of residence with a granny flat on the property
- GST issues: subdivision, claiming a credit on the construction, and GST on sale of the property
- Income tax issues and rates
- CGT considerations: CGT discount requirements
Presented by David Shaw, CEO, WSC Group
5.10pm to 5.15pm Closing Remarks