Welcome to our March newsletter,
Apart from a week of torrential rain we are still managing to enjoy the benefits of the summer months and here at Davenports West we are continuing a busy start to the year. We know that when life gets busy we can overlook the less important matters in our lives especially regarding our future. Residential Care can often cause a headache, whether it is for yourself or for your parents. Either way it is an important matter to consider well before it is required.
With New Zealand’s ageing population the demand for rest home care has increased significantly. This increased demand has led to changes to the Residential Care Subsidy rules as the financial burden on the government grows. In order to receive a government subsidy for residential care a single person’s asset pool must be less than $219,889.00. If eligible and once receiving the subsidy that person will no longer receive all of their Superannuation, the majority of which will go to the care organisation.
Previously families have used trust structures to ensure that those needing residential care would be eligible for the subsidy. This is no longer successful and such structures may not guarantee entitlement to the subsidy. The subsidy is now both income and asset tested and also looks into any trust structures in place. If the Ministry of Social Development is satisfied that the purpose or one of the purposes of a trust was to intentionally deprive a party of assets in order to ensure that they eligible for the subsidy it is likely those assets will be brought back into the asset pool.
The costs of residential care can be very significant and families need to plan for the eventuality financially. Many are unaware that the financial threshold for the subsidy is relatively low. For a single person who has significant assets such as a home but only a little cash may be required to sell the family home in order to fund the residential care.
If you have any questions regarding this matter or any other matters we would be more than happy to assist with you.
DAVENPORTS WEST LAWYERS LIMITED
The Human Factor in Small Business
One of first steps in scaling a business is putting more people on the job. Whether it’s contractors, freelancers or permanent staff, the move to adding human resource to a business is a defining milestone. Here are six things to consider…
Security and spying legislation changes boost accountability
Changes to proposed spying laws have tightened the rules around obtaining warrants and placed more responsibility for the actions of New Zealand’s spies directly on the responsible minister. The details have been released in a report from MPs…
NZ should follow Australian cat control laws?
New Zealand should follow Australia’s lead and adopt cat curfews, a group campaigning for tougher cat control laws says. Across Australia councils are introducing strict laws cracking down on roaming cats in an attempt to stop them…
Harvard Study – Most Effective Way To Get Rid Of Your Debt
It’s a sad truth that too many people in our society are crippled by debt. It’s one thing to have a mortgage or interest free student loan that you make regular payments towards, but it is another thing entirely to spend your days juggling high…