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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22986
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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My father is 90 years old and had a hip replacement. He has

Customer Question

My father is 90 years old and had a hip replacement. He has been living at home but it will only be a matter of time before he will need full time care. His home is worth approx 300.000 on today's market. He wants to keep the house in the family rTher than selling it when he goes into care. None of his seven children are in a position to buy the property. What is the best solution? Can he gift it to us?
Submitted: 2 years ago.
Category: New Zealand Law
Customer: replied 2 years ago.
Will this disadvantage him should he need to go into residential care? Will his care be government subsidised?
Expert:  Chris The Lawyer replied 2 years ago.
there is an asset threshold which has the minimum amount of assets he can keep before he has to pay the rest home fees. this changes from year to year and is currently $213297 and increases each year. The effect of this is that he would need to get a loan from WINZ for the fees until he reaches this figure. This is secured against the home. If he sells the home then the money will be used for the fees.
Expert:  Chris The Lawyer replied 2 years ago.
He cannot gift the property because any gifts made within 4 years of needing rest home care are not valid. So the options are not attractive for the family. He either keeps it and would need to have someone rent or look after it or sell it and the money would be used for his care
Customer: replied 2 years ago.
Could he sell the property to a family member for less than market value?
Customer: replied 2 years ago.
Could he add his children's names to the title to avoid having to sell?
Expert:  Chris The Lawyer replied 2 years ago.
Unfortunately they look carefully at any sale to family and would regard sale at less than the market value as a gift. Adding them to the title would also be seen as a gift.
Customer: replied 2 years ago.
Are you able to say howuch the threshold amount increases by per year?
Expert:  Chris The Lawyer replied 2 years ago.
This is set by the Consumer Price Index increase each year. So if this is 4% then the amount increases by that percentage.