Dealing with what happens after someone passes away can be confusing, especially when figuring out who qualifies as someone who relied on the person or needed their financial help. Let’s break it down into two important categories: Interdependency and Financial Dependency.
Being Close: The Interdependency Connection
An interdependency relationship is like a close friendship, where two people live together and help each other out. This can mean sharing money and taking care of each other. Even if they’re apart for a while (like one person living overseas or in jail), they might still be considered interdependent if they have a close bond.
To decide if there’s an interdependency relationship, we look at things like how long they’ve been close if they have a romantic relationship, if they share things like property, and if they’re committed to each other’s lives. It’s not about checking every box but understanding the situation.
Relying on Money: Financial Dependency Explained
If someone doesn’t fit into the interdependency criteria, they might still be financially dependent. This means they depended on the person who passed away for important money support. Even adult children can be financial dependants if they rely on the deceased for money.
Figuring out financial dependency isn’t clear-cut since the rules have no strict definition. We look at past cases and see if the person needed the money for everyday things like food and housing. If a grandparent chooses to pay for something like school fees, it might not count as necessary support since it’s more of a choice.
Flexibility and Seeking Help
Understanding these rules can be tricky. It’s like a puzzle where each situation is a bit different. So, it’s a good idea to talk to experts who know the ins and outs. You can reach out to legal professionals to guide you through the process.
Extra Tip: Australian Taxation Office to the Rescue
Sometimes, it’s not clear if two people living together qualify as interdependent. In these cases, you can ask the Australian Taxation Office for help. They can give you a private ruling, which is like getting personalised advice to clear up any confusion.
Dealing with what happens after someone passes away is never easy, but understanding these terms—interdependency and financial dependency—can make it a bit simpler. It’s all about ensuring the right people get the support they need.
