The underlying purpose of the Social Securities Act 1964 is to ensure that financial support is available to people who require it. The availability of this support is subject to means testing, and the Act requires that "where appropriate they should use resources available to them before seeking financial support under this Act". These resources may include assets held in trust.
If you need long term care in a rest home or hospital, you may be eligible to apply for a residential care subsidy.
Eligibility for a residential care subsidy is assessed by the Ministry of Social Development (“MSD”). About 15 years ago MSD changed the asset levels for eligibility for the residential care subsidy. These changes markedly increased the value of assets that an applicant could retain and still be eligible for the subsidy. However, MSD then became more vigilant to ensure that when an applicant had resources available to them, those resources are used before seeking financial support from the state.
That parents provide for their children is inherent in the parent-child relationship, and sometimes continues even as children reach adulthood. Parents with more than one adult child must often assess the merits of helping children at different times and in different ways, with outcomes that cannot be readily equalised or compared. These considerations may be at the forefront of your mind when making a will. In the High Court case of Ware v Reid & Ors [2019] NZHC 506 Dunningham J addressed this issue where the four adult children of a farming couple had each been helped into farm ownership during their parents’ lifetimes. The parents then sought to equalise this financial assistance as between their children in their respective wills.
New Zealand law on trusts and their operation is changing. These law changes will take effect from 30 January 2021, when the Trusts Act 2019 comes into force. The new Act will repeal the Trustee Act 1956, under which most existing trusts have been settled.
The changes will apply to both existing and future trusts, and will affect those in the roles of settlors, trustees and beneficiaries. The changes are intended to simplify trust law and make it more accessible.
We all lead busy lives. Our circumstances, and those of our family, change. As our lives change our wills and other personal documents also need changing, or at least reviewing.
A recent case (Sutton & Ors v Public Trust [2015] NZHC 1844 [6 August 2015]) highlights what can happen when your will has not been updated to meet a change in circumstances. It also highlights that you need to be sure that what your will says is what you want. Does the person drafting your will know your personal circumstances. Do they know you?
In December 2016 amendments to the Protection of Personal and Property Rights Act 1998 (“PPPR Act”) were passed by Parliament. These amendments will come into force on 16 March 2017. Among the amendments that have been made are regulations to adopt new forms of the enduring powers of attorney (EPA). From 16 March 2017 these new forms will need to be used. If you have completed an EPA using the old forms but you and/or your attorney have not signed them before 16 March 2017, then these will need to be redone on a new form.
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