Trust Series 2024 – Residential Care Subsidy Update

Description

MSD’s very long arm

This webinar, which is relevant to all practitioners who advise clients regarding Residential Care Subsidy (RCS) applications or expectations, is presented by Vicki Ammundsen.

RCS applications have three components.

  • Needs assessment
  • Means assessment (if the needs assessment is met), and
  • The Income assessment (if the means assessment is met).

The income assessment determines how much the applicant must pay towards the cost of long-term residential care. In Broadbent v MSD the Court Appeal confirmed that notional income cannot be considered as part of the income assessment. MSD’s response to Broadbent is two-fold.

  • Interest not charged on outstanding debts can be capitalised,
  • There is a greater expectation that trusts will voluntarily assist with long-term care costs. This reflects Broadbent v MSD at [84] where the Court of Appeal:

In this case, a trustee of the Family Trust is empowered to make distributions of trust income to Mrs Broadbent. It does not matter that Mrs Broadbent is merely a discretionary beneficiary. She has a right to request payment from the Family Trust. In a closely held family trust with a history of payment to her, trust income must be assumed to be available unless there are particular circumstances that demonstrate it is not.

This webinar will provide a clear overview of the relevant rules and thresholds supported by explanatory case studies.

This case studies will clarify:

  • the relevant thresholds for means testing
  • gifting thresholds
  • how far back can MSD look?
  • what constitutes an interest in a property
  • exempt assets and income
  • advising trustees regarding long-term care cost expectations

Topics covered will also include:

  • practical considerations regarding RCS applications
  • excess gifting and gifting “rehabilitation”
  • how to communicate complex trust structures to MSD, and
  • how to advise clients who are wanting guidance on whether to retain a trust

LEARNING OUTCOMES

This webinar will enable practitioners to competently advise clients regarding long term asset and estate planning and in many circumstances avoid costly structures that may ultimately be ineffectual for Residential Care Subsidy purposes.

SUITED TO

All practitioners involved in long term asset and estate planning and advisors with elderly clients.

PRESENTER

Vicki Ammundsen, Director, Vicki Ammundsen Trust Law Limited.

 

1.5 CPD Hours

  • Jun 26
    • $215.00 excl. GST
    Wed, 10:30 AM NZST - Wed, 12:00 PM NZST Online
    • $215.00 excl. GST

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