The idea of guardianship, or being a guardian, is often misunderstood. A guardian of a child is someone to whom the right to make decisions about important matters affecting that child has been given under the Care of Children Act 2004 (the Act). A guardian contributes to a child’s intellectual, emotional, physical, social, cultural and other personal development.
Your will is one of the most important documents you will sign in your life. It has a profound effect on the legacy you will leave your loved ones.
The underlying purpose of the Social Securities Act 1964 is to ensure that financial support is available to people who require it. The availability of this support is subject to means testing, and the Act requires that "where appropriate they should use resources available to them before seeking financial support under this Act". These resources may include assets held in trust.
If you need long term care in a rest home or hospital, you may be eligible to apply for a residential care subsidy.
Eligibility for a residential care subsidy is assessed by the Ministry of Social Development (“MSD”). About 15 years ago MSD changed the asset levels for eligibility for the residential care subsidy. These changes markedly increased the value of assets that an applicant could retain and still be eligible for the subsidy. However, MSD then became more vigilant to ensure that when an applicant had resources available to them, those resources are used before seeking financial support from the state.
That parents provide for their children is inherent in the parent-child relationship, and sometimes continues even as children reach adulthood. Parents with more than one adult child must often assess the merits of helping children at different times and in different ways, with outcomes that cannot be readily equalised or compared. These considerations may be at the forefront of your mind when making a will. In the High Court case of Ware v Reid & Ors [2019] NZHC 506 Dunningham J addressed this issue where the four adult children of a farming couple had each been helped into farm ownership during their parents’ lifetimes. The parents then sought to equalise this financial assistance as between their children in their respective wills.
New Zealand law on trusts and their operation is changing. These law changes will take effect from 30 January 2021, when the Trusts Act 2019 comes into force. The new Act will repeal the Trustee Act 1956, under which most existing trusts have been settled.
The changes will apply to both existing and future trusts, and will affect those in the roles of settlors, trustees and beneficiaries. The changes are intended to simplify trust law and make it more accessible.
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