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There are a number of criteria that must be satisfied to be eligible for a residential care subsidy. There are particular thresholds that apply to your financial means and the value of your personal assets.
It is also something that should be considered long before residential care becomes a need. This is because, if you have a Family Trust, the gifting of assets to the Trust and income earned by the Trust over time can also be taken into account if certain limits have not been observed.
Speaking of Trusts, on 30 January 2021, the new Trusts Act 2019 will come into effect. The 2019 Act modernises existing trust law, provides better guidance for Trustees and Beneficiaries, and will hopefully make it easier to resolve disputes.
While most of the Act updates or restates existing statute or case law, there are changes that anyone who is a Trustee of a Trust or has a Trust should be aware of. The new Act will impose mandatory obligations that have to be followed, including keeping of proper records and the disclosure of information to beneficiaries. There will be compliance costs associated with the changes so now is the time to review whether or not your Trust is still relevant.