The Court of Appeal has now confirmed the High Court’s position that only $27,000.00 per annum is allowed for the rest home subsidy exemption.
Historically most trusts have had couples gift $54,000.00 per annum based not only on professional legal advice but also on the Ministry of Social Development’s own practice. Commentators in text books on the subject over the years have referred to $54,000.00 as allowable gifts for couples.
This stance now means that unless the Supreme Court overturns this decision, if it is appealed, then the means assessment for the rest home subsidy for people who have gifted $54,000.00 per annum to their trusts will only be allowed to have the benefit of $27,000.00 per annum of their historical gifting and are therefore likely to be ineligible for subsidy. This may have a significant impact on many people who believed that their trust gifting was complete in order to make them eligible for the subsidy.
People in these circumstances should urgently discuss the matter with their advisors to consider their best options and Farry and Co. are experts in this area and can advise you in all aspects in relation to Trust matters.
If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:
Michael Nidd
03 477 8870 or 09 379 0055
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.