Action is required well in advance of retirement if you want access to a government funded pension or a residential care subsidy.
Saturday, April 19th 2003, 12:20PM
by The Landlord
Asset test or no asset test, many elderly people have received publicly funded care without having to hand over most of their worldly goods, thanks to a family trust.
However, a trust isn't a bullet-proof answer.
When people apply for the Residential Care Subsidy, Work and Income asks whether they have given away any of their assets.
Typically, that question looks back five years. Anything given away in that time, beyond $5000 a year, can be counted as an asset.
The five-year rule isn't hard and fast; Work and Income says it can look back further if it believes people have given away excessive amounts...
