Tips for torrow

[Wasp]

Around the campfire the other day ,people talked about future retirement , pensions and asset test . Like many of us , we own a bike or two and maybe some other toys. When I thought about there are a few questions that may arise . Some of you have already done through this or others may have the knowledge to contribute . Because there are many angles to this transition , I will bring each question separately .

[Wasp]

First question : How many bikes are you allowed to own and how are they valued ?

[PeterC]

Are multiples of thevsame bike cpuntedvas one or two?

[Wasp]

Interesting question Peter. How are parts valued for the asset test ?  Lets say you have couple of Vincent engines laying around to exaggerate the point a bit .

[PeterC]

Walter, my thoughts are:- For the wife this equals 1x engine and some spares I suggest. For insurance it is a minefield and maybe cost prohibitive. Sometimes it is worthwhile in "muddying the waters".


In Victoria "Dan's own country, we always add  a little " Spin" and never can remember!!

[Wasp]

Thanks Peter for that advice . Has actually anyone gone through this valuation process and is willing to share that experience ?

[PeterC]

i have used sworn real estate valuations but this is easy. There are many good sworn real estate valuers, as they use comparable sales.

Our stuff - motorcycle and related tools, parts etc are I would think much harder to value. I would suspect that are very few Auctioneers with experienxe to accurately valua our stuff. There are good  farm clearing sale valuers but our very specific, small market items ate much harder to value. For insurance purposes  advise the insurance conoany what I thinj is a realistic sale value.This pnly applies to complete motorcycles and i dont insure all of them.

I cannot add any more, excepting if you can find a "Valuer"

peter

[Wasp]

Peter , what I meant to say , what to look for when nearing pension /retirement age .I am looking for advice from people that have gone through the normal retiring process ( not disability). I am looking for things that you would have done different , if you had a second chance , when preparing your self . Things like :how to declare your bikes , camper van , tools , purchases , sales etc , before filling out any government forms or declarations .

[skypig]

One issue looming form me is my “residence”.

As I live in an “Industrial” Building, it will be counted as an asset, rather than a Primary Place of Residence, (Which it is.)
This alone would prohibit me being entitled to any pension whatsoever.

[bazza]

 surely your bikes belong to your kids and you just store them

[PeterC]

An option is to have assets in kids name or a trust with kids as the beneficiarie. this requires a solicitor who knows the system.

Asset planning requires time and thought. it can benefit both parents and dependants.

[Wasp]

Thanks , yes that is the discussion I was looking for . Keep it coming if you have questions , tips or contributions .

[PeterC]

Walter one can setup a trust to hold assets (I believe realestate needs to be owned by a company) with the beneficiaries of the trust receiving the assets of the trust upon ones death.

I also think one could rent a property from a trust at a nominal amount till their death without owning the property, thus reducing thier assets. One could perhaps have written into the trust documents they could use/rent the property till they die.

Therefore one has less assets when doing their pension application.

I think the key is planning ahead

There are solicitors who specialise in trusts.

I will look to find more information.

peter

[skypig]

Walter one can setup a trust to hold assets (I believe realestate needs to be owned by a company) with the beneficiaries of the trust receiving the assets of the trust upon ones death.

I also think one could rent a property from a trust at a nominal amount till their death without owning the property, thus reducing thier assets. One could perhaps have written into the trust documents they could use/rent the property till they die.

Therefore one has less assets when doing their pension application.

I think the key is planning ahead

There are solicitors who specialise in trusts.

I will look to find more information.

peter

Good info, but your primary place of residence, can be worth millions without being counted as an asset. Unless you live in an Industrial Building, apparently.

Personally, I would value my fleet of motorcycles so low, that I probably wouldn’t mention them on any asset test.

[bazza]

 Really you get assets tested for the pension? All pay in to tax while working so what you own should be irelevent like in NZ
If your kids are working and not retired, could they not "own" your bikes, boat etc?