Residential Care Subsidies

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 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)

• 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

• $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.

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

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.

• 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.

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 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.