A prominent local law firm is suggesting that people should be aware that if the government is to change there could be a re-introduction of gift duty.
Therefore, it could be a good time to look at any upcoming lump sum gifting you are considering.
We thought it could be helpful to alert you to the thinking of other professional offices.
We remind you that the abolition of gift duty does not remove the rest care subsidy rules that WINZ apply. A summary of these are below:
If you or your spouse/partner gift away assets, they still may be counted as assets in your financial means assessment.
Gifting of up to $6,000 per year made in the five years before you apply can be excluded from the financial means assessment. This applies to each application for the Residential Care Subsidy.
For example, if both you and your spouse/partner apply for the Residential Care Subsidy then gifts of $6,000 each per year, can be excluded.
Gifts of more than $27,000 per year, per application* made before the five year gifting period, may be added into the assessment.
* For couples, gifting is $27,000 in total – not per person.
Source: Work and Income NZ.
Here’s how I read it:
In the five years leading up to application you may only gift $6,000 per year otherwise it will be included in the assessment. Before this 5 year time frame you may only gift $27,000 per year (per couple) otherwise it will be included in the assessment.
If you want to read more: http://www.workandincome.govt.nz/individuals/forms-and-brochures/residential-care-subsidy.html