Q: I’ve gifted a lot of money to my family over the years. Will this be included in my asset test for the Residential Care Subsidy?
A: It depends – if the money was gifted (by you or your partner) more than five years before your subsidy application and over $27,000 was gifted in any 12-month period, it may be included in the asset test.
If the money was gifted (by your or your partner) less than five years before your application and more than $6,500 was gifted in any 12-month period, the excess amount may be included in the asset test.
We would suggest seeking legal advice whenever you are thinking about gifting assets of a substantial value – particularly if you are approaching retirement age – to make sure you understand how the transaction will affect your finances in the long run.
Note: This post is brief and general in nature. You should not treat it as legal advice and should seek professional advice before taking any action in relation to the matters dealt with in this post. Armstrong Murray accepts no liability for losses suffered by any person or organisation who may rely directly or indirectly on this post.