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The discussions around entitlements to a residential care subsidy increasingly take on the status of urban myths. Ayres Legal is presenting a seminar with plain English advise regarding the effect gifts to trusts and other matters have regarding entitlements to residential care subsidies. The seminar will be held on 16 April at the Epsom Community Centre. To … Continue reading
Commentators have been divided as to whether it is correct for gifts made by a person’s spouse or partner to be taken into account when assessing that person’s entitlement to a residential care subsidy. The question, which revolves around the correct interpretation of s 9B of the Social Security (Long-Term Residential Care) Regulations has been answered … Continue reading
It is well recognised that arrangements surrounding family trusts are often informal. However, while this is understandable, and explainable, the consequences of this informality can be uncertainty and, at worst, understandings of some parties that are light years from what might have been intended. Regardless of the relationship between the parties, and indeed often because … Continue reading
The regulatory statement to the Budget 2012 amendments to the residential care subsidy thresholds (now CPI adjusted rather than increasing at $10,000 per annum) makes interesting reading reading. Accepted that interesting might overstate the matter for many. Regardless, the statement does throw up some numbers that add some flesh to the bones. For example, of the … Continue reading
Many people undertake asset and estate planning with the hope that the arrangements entered into will protect assets so that they will not be counted for residential care subsidy purposes. The success or not of these measures depends on timing and require careful understanding and appreciation of how the relevant thresholds are applied. See gifts … Continue reading
When Alexander Pope wrote “To err is human; to forgive, divine” it is doubtful that his mind was turned to matters equitable. However, the expression is an apt description of the recent decision in Official Assignee v Mayers. This case considers whether the Official Assignee can recover gifts made by way of forgiveness of debt prior to … Continue reading
Approximately 19,000 New Zealanders in long-term residential care receive a residential care subsidy (RCS), that is financial assistance with long-term care once a person is no longer able to be cared for at home. To qualify for a RCS a person must first be able to show a limited level of assets. However, if a … Continue reading
Gifts made when insolvent can be voided, that is the gift is reversed. This means that if a person is bankrupted any gifts made within the 2 years prior to bankruptcy are voidable as against the Official Assignee (this means that any gifts must be paid back to the bankrupt’s “estate” and can be used … Continue reading
From 1 October of this year, assets can be gifted to trust free of gift duty. Gift duty, was abolished because the Government was of the view that it was an inefficient tax that was easily avoided through gifting programs. For readers unfamiliar with gifting programs – this is how they worked: If I gifted … Continue reading
Matters of Trust 