Good Lawyers for Good People

Residential care subsidies - are you eligible?

November 24



With Nick Earl


Residential Care Subsidies can be confusing, especially when it comes to working out whether you or a family member are eligible or not.


To clarify, a subsidy helps with the cost of care in a rest home or hospital, and does not apply to retirement or lifestyle villages where you can buy a licence to occupy.


To qualify, you must be 65-plus, and your assets must be equal to or below the threshold for your circumstances. You may also qualify if you are between 50-64 years, are single and have no dependent children. In the latter case, you will not be asset tested.


Assets taken into consideration include money in the bank, bonus bonds, shares, life insurance policies, loans made to other people (including family trusts), vehicles and property owned.


Even assets that are given away to family and friends could be taken into consideration if not managed carefully. However, some assets are excluded from the subsidy’s means testing. For instance, a pre-paid funeral account of up to $10,000 per person is exempt if it is held in a recognised funeral plan, like those offered by Lyon O’Neale Arnold. Personal belongings, furniture and effects are also excluded.


If you meet the asset threshold, Work and Income then assesses your income to determine how much you contribute towards the cost of your subsidy.


Seeking sound legal advice can help you manage your assets effectively into your retirement years.


- Weekend Sun, November 24, 2017



Keeping kids safe online


Schoolyard bullying has always existed, but with advances in technology, information that might once have been scribbled..


A year in law with Kathryn Esterman


In July this year, soon after joining the team at Lyon O’Neale Arnold, solicitor Kathryn Esterman was admitted to the ba..


Know your limit


A reminder if you are socialising over the festive season, to please do so responsibly. In December 2014, the alcoho..


Residential care subsidies - are you eligible?


LAW OF THE LAND With Nick Earl Residential Care Subsidies can be confusing, especially when it comes ..


Smart money when buying a business


LAW OF THE LAND With Denise Arnold Setting up or buying a business can be both an exciting and frant..



Lyon O'Neale Arnold

Lyon O'Neale Arnold is a Bay of Plenty firm of trusted and experienced lawyers offering exceptional legal advice regarding a wide range of legal services.



40 Willow Street, Tauranga 3110

PO Box 746, Tauranga 3140

+64 7 928 4422





Contact Details

Quick Links