Your client, who is 62 years of age, has a loan of $300,000 remaining on his home, subject to a mortgage. He is not married and shares the home with one of his daughters, Amy, who is in receipt of a disability pension. He has no savings, but his industry superannuation fund has a balance of $150,000 (with a $30,000 tax-free component) and a life insurance policy of $200,000 that would pay off the loan. He has provided a binding death nomination to the superannuation fund in favour of his daughters Amy and Bianca jointly (50% each).  He wants to leave the house to Amy, with the loan fully paid, with any surplus shared between his daughters while minimising any tax they may be required to pay.
Advise on the outcome of the current arrangements. Do they meet his stated wishes, and if not, what changes would you recommend that he make to achieve this outcome?

Answer rating: 100% (QA)

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