[UktoKiwi]

I just read this in another post:-
"Apparently family trust protect your assets from being seized by the government in lieu of long term medical treatment (among other things)"
Sounds a little ominous.
Does anyone know more about this?
I know most of the things about gp's costs in NZ and prescriptions etc. but thought that normal hospital costs and long term treatment was similar to UK (or hopefully better).
But the above, if true, is a potential concern.

[kiwidebs]

I think its more if you end up in a rest home/geriatric hospital etc - the govt expects you to pay if you have money or assets. You have to have had your assets in trust for a number of years before ending up in the home to avoid the govt considering it still yours - not entirely sure how long. I don't know the ins and outs but I think this is the gist of it.

Debs

[adamsat]

I've found out a bit about this as part of our house buying process. Here is a good website about trusts.
http://www.sorted.org.nz/trusts.html

The site has a section on using them to protect assets if you reqire long term care in a rest home. http://www.sorted.org.nz/Advantages.html#assettesting

We decided not to set one up as we didn't feel convinced it was right for us.

Hope this is useful.

[UktoKiwi]

Thank you both for your replies.
Yes. It seems that it is only for rest or nursing homes- long term care/resdience etc and that seems fair enough to me.
The way the original statement was written could have been interpreted for any long term hospital medical care that could happen to any of us such as dialysis, MS, Cancer etc. and I presume that that is not the case.
The sorted link looks very interesting and informative. I will certainly read more on that site when I have the time.

[Avalon]

Info Ive just read from a book on Trusts says that for rest home care - the government will not pay subsidies if you have more than $15k in assets. If you do (such as a house) you need to liquidate the assets and pay up yourself. Once you have only $15k left, the governemnt will subsidise the fee - and you get a whole $27 a week spending mony on top! (Dont spend it all at once!!!)

Setting up a trust can protect the assets (because you dont then own them) - but you have to have set the trust up early enough so that the government or IRD dont see the trust as a sham used specifically to avoid having to pay for care home fees.

(Not sure on this - as is seems subject to change - but at the moment it seems the assets have to have been fully in trust a full 5 years before you would need to claim rest home subsidies - otherwise the powers that be can dismiss the trust).

It may be somethimg to keep in mind for the future - which is what I think I will do. Im not sure i like the idea of trusts - but it does get you round this whole rest home fees stuff.

[adamsat]

I think the limit has been increased, or is about to be, from $15k to $115k.