tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Sunday, November 3rd, 1:12PM

News

rss
Latest Headlines

Residential Care Subsidies

You may be able to get Residential Care Subsidy if:

Wednesday, October 18th 2000, 3:09PM
As a company that specialises in protecting assets, we are commonly asked questions regarding Residential Care Subsidies and Asset Testing

As a company that specialises in protecting assets, we are commonly asked questions regarding Residential Care Subsidies and Asset Testing. We have put together some facts and figures that will answer the commonly asked questions we receive. The Residential Care Subsidy provides financial assistance to those who are assessed as needing long-term residential care in a rest home or hospital. Applicants for the Residential Care Subsidy are subject to Asset and Income testing to assess their eligibility to receive the financial assistance available.

You may be able to get the Residential Care Subsidy if:

  • You have had an assessment of your individual needs that confirms you need long-term residential care in a licensed rest home or hospital and
  • You need this care for an indefinite length of time and
  • You are 65 or older (although some people aged 50-64 may also qualify)

And...

  • The value of your assets are within certain limits and
  • Any income you receive goes towards your care - up to a maximum of $636 a week

What Assets Can You Own?

Your total asset value must be under these limits:

  • $15,000 if you are single or widowed or
  • $30,000 in combined assets if you are a couple and both are in long-term residential care or
  • $45,000 in combined assets if you are a couple and only one of you is in care.

Assets that are counted are:

  • Cash or savings
  • Investments, shares, bonds
  • Outstanding loans made to other people (including Family Trusts)
  • Your house, chattels and car if you live alone.

Assets that are not counted are:

  • Your house, chattels or car if your partner or dependent child still lives at home
  • Personal belongings such as clothing and jewellery
  • Pre-paid funeral expenses for you and your partner of up to $10,000 each (see Funeral Trusts. {link to FT page}).

How Much Income Can You Earn?

There are no limits on the amount of income you can earn - but any income you earn (up to $636 a week) will go towards your care.

What is classified as 'income'?

  • New Zealand Superannuation, any pension or income support payment
  • Overseas Government pensions
  • Contributions from relatives
  • Accident insurance payments
  • Earnings from investments or business
  • Income from a Family Trust.

Only 50% of income generated from New Zealand registered private superannuation schemes and annuities is counted. A War Disablement Pension is not counted as income.

Any income your partner earns (except NZ pensions and income support) is counted in assessing if you qualify for a subsidy. The maximum income your partner can earn is dependent on how many children you have.

How Much Do You Get?

The Residential Care Subsidy is paid directly to the home or hospital. The amount paid depends on how much you contribute to your care. If you receive New Zealand Superannuation, a Veteran's Pension or income support, most of your payments will go towards your care. The rest is then paid to you as a personal allowance of $27.22 a week. You also receive a clothing allowance of $192.77 a year.

If you have a partner?

If your partner receives New Zealand Superannuation, a Veteran's Pension or income support, they will get an increase in their payments, and a special disability allowance of $27.22 a week to help with the costs of visiting you.

The key to protecting your assets, and "Securing your family's future", is to plan for these types of events that can severely erode your financial worth, and not to leave it too late to take action. Tower Trust has 119 years experience of protecting peoples' assets for future generations.


Call us on 0800 TOWER TRUST 0800 869 378) to discuss your needs to plan for the future.

« Taxing beneficiary income of minors at 33% rateThe plain truth on plain English wills »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ ▲8.15 ▲6.79 ▲6.45 ▲6.29
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 6.39 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼8.10 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.24 6.09 5.69

Last updated: 1 November 2024 2:24pm

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com