Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Is Gifting Really Free?

Is Gifting Really Free?

Following the abolition of Gift Duty, Age Concern New Zealand reminds older people to think carefully before disposing of their assets.

Age Concern's honorary solicitor Jock Nicolson is concerned older people may be encouraged to give away too many assets prematurely.

One reason for this could be so that if they go into care their assets will fall below the threshold level of personal assets to ensure they are eligible for state funding of their care.

However, a gifting limit of $6000 per year applies for each of the five years before applying for a residential care subsidy. Gifts in excess of $6000 in each of the five years preceding entry into care are brought back into account in assessing eligibility.

Prior to October 1 an individual could only gift $27,000 each year without incurring gift duty.

Mr Nicolson says he is concerned older people may be influenced, by family members or others, into giving away more than they are comfortable with, or is sensible for them.

"Giving away assets prematurely or excessively could lead to an older person losing their independence, which is essential for their well-being."

He fears older people would be reluctant to ask for money back, should they live longer than they had expected or incur unexpected expenses.

"The last thing older people want to do is to go along cap in hand and say to the family 'I need some financial help'."

His advice is clear - "If you're going to gift property, think carefully about your own needs and seek proper professional advice before doing so."

Gift duty was introduced in 1885 to raise revenue and discourage people from giving away their assets before they died. It ran in tandem with death duty which has since been abolished.

Government cited high administration costs as a key reason for changing the legislation.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Fair Pay Agreements Should Be Embraced

Are Fair Pay Agreements (FPAs) truly the work of the devil? Given the vehement response to them last week by (a) employer groups and (b) by their parliamentary friends on the extreme right, you could be forgiven for thinking these FPA things will mean curtains for commerce as we’ve known it for the past 30 years. Believe me, they won’t. Less excitable types will regard FPAs as heralding only a mild shift towards a more centralised form of bargaining over wages and conditions, much akin to what other successful economies (eg Germany) have recognised for decades... More>>


Government: Further Action Against Gang Crime

The Government will make it illegal for high risk people to own firearms by introducing Firearms Prohibition Orders (FPOs) that will strengthen action already taken to combat the influence of gangs and organised crime to help keep New Zealanders and their ... More>>


Maori Party: Whakatōhea High Court Decision

“We applaud the Whakatōhea High Court case that has now set a precedent for Māori rights and interest in their foreshore and seabed. It’s an outstanding decision because the Court recognises all reclaimed lands with significant and boating traffic” ... More>>


Judith Collins: Speech To Lower North Island Regional Conference

Good morning, delegates. It’s an absolute privilege to be speaking to you all here today as your leader. I’d like to acknowledge National Party President Peter Goodfellow, my fellow board members, my lower North Island colleagues and all of ... More>>

PM: Statement On The Speaker And Annual Review Debate

“The serious issue of alleged sexual assault and harassment at Parliament was poorly managed and inappropriately politicised last night. The tone of the debate did not reflect well on Parliament as a whole,” Prime Minister Jacinda Ardern said. ... More>>

Parliament: Mallard Fails To Give Taxpayers A Straight Answer

Trevor Mallard has confirmed he is unfit to be Parliament’s Speaker by failing to answer several important questions relating to the false rape accusation saga that cost taxpayers more than $330,000, Shadow Leader of the House Chris Bishop says. ... More>>

Local Government: Independent Review To Explore Future

Local Government Minister Nanaia Mahuta says an independent review of local government will explore how councils can maintain and improve the wellbeing of New Zealanders in the communities they serve long into the future. More>>


PM Ardern And PM Morrison: Commencement Of Two-Way Quarantine-Free Travel Between Australia And New Zealand

Joint Statement by Prime Ministers Scott Morrison and Jacinda Ardern Commencement of two-way quarantine-free travel between Australia and New Zealand Today, Australia and New Zealand have fulfilled their commitment to establish two-way quarantine free ... More>>




InfoPages News Channels