Family trust & changing rules around residential care subsidy
Clarification is still needed but a decision, released in late 2012, concludes where couples have together gifted $54,000 annually in a gifting programme, the spouse applying for a residential care subsidy will have breached the $27,000 threshold.
Clearly a significant change.
None of these type of changes are ever black or white and the impact varies given individual circumstances.
One outcome could be that as a result of this decision, most couples with family trusts who have taken part in conventional gifting programmes will not qualify for the residential care subsidy.
We are chasing clarification for our clients.
Watch this space.