A huge number of New Zealanders set up family trusts, usually with a gifting programme in favour of their trust so as to transfer assets. We have seen estimates as high as 400,000 New Zealanders who have done so. By these means, assets are transferred into their trust, which cares for them during their own lifetime and their surviving spouse or partner thereafter, and then has funds to provide for family members.
Trusts are used for a variety of asset planning purposes. One of their key benefits and a purpose for which they are widely used for is protection against creditors, to ring-fence and protect personal assets if a business or individual is liquidated or declared insolvent and family reasons. Protection of trust assets from a residential care subsidy perspective is the focus of this article.
The manner in which your trust has acquired assets is the crucial question in ensuring protection against creditors from a residential care perspective. While certain recent or otherwise fraudulent disposals made to the prejudice of creditors may be set aside, good faith disposals to your trust may not be affording you the protection you think that they are if your disposal and asset transfer has been structured on a gifting basis.
A structured gifting programme of assets to your trust may result in your assets remaining within your current or future creditors grasp. It’s important to bear in mind that creditors aren’t just your current lenders, you may incur substantial claims, liabilities or debt in the future which may not currently be foreseen...
The Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Act was given Royal Assent on 30 March 2022. The Act came into force on the day on which it received Royal assent save for provisions which are specified to come into force on a specified date.
The Act amends the Income Tax Act 2007 in relation to the bright-line test for residential land and the main home exclusion for disposal within 10 years. The bright-line property rule provides that if you sell a residential property that you have owned for less than 10 years (or 5 years for qualifying new builds) you may have to pay income tax on any gain on the sale.
The change eagerly awaited, is the change to when the acquisition date for the bright-line test for certain family trusts will deem a property to have been acquired. The effect of the change is a rollover of the acquisition date from the original owner of the land to the new owner when calculating the bright-line period for transfers of residential land to and from qualifying family trusts...
When deciding to move into a retirement village there are important matters to consider. The decision involves understanding foreign concepts, legal jargon and personal challenges one may be facing at the
time. Not all villages are the same. There are certain things to look out for when purchasing a right to occupy in a village The Retirement Villages Act 2003 (the “Act”) provides that an intending resident must receive independent legal advice from a lawyer before signing what is called an Occupation Right Agreement (“Licence to Occupy”). Advice from a lawyer is an essential step in guiding you with your purchase...
Last year, in 2021, several important legislative changes were made which new laws may be impacting your business or you personally.
ASCO Legal’s expertise includes a range of practice areas and we are here to help you navigate the effects caused by the changes. We have provided a short summary of the impact of some of these key changes and invite you to contact us for further assistance.
Changes in the following affected areas: -
As from 7 November 2021, in terms of the End of Life Choice Act 2019 (the “Act”) persons who have a terminal illness and who meet the criteria established in the Act have the option to lawfully request medical assistance to end their lives. The Act creates a lawful process for assisting eligible persons who decide to exercise such option.
There were two prior attempts to pass a Bill of this nature, one in 1995 and the other in 2003 but both never progressed beyond their first readings. There was high opposition to the passing of the Act and was preceded by a national referendum.
The Act is required to address and balance two competing interests namely, access to the right afforded by the Act and to provide appropriate safeguards to protect vulnerable persons against abuse of the Act. We outline some of the details here for your information...
All of the ASCO Legal team keep up-to-date with their respective practice areas. Click on each specific article to learn more about the team members involved.
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The information posted on this website is prepared for a general audience, without investigation into the facts of any particular case. This information is no substitute for legal advice and does not create a lawyer-client relationship; you are advised to consult with a lawyer on any legal issue.