There have been a few recent changes to financial limits in the Seniors and Estates areas of law. Also, in the Seniors sphere, Retirement Village living continues to be much discussed. Here are some updates.
Rest Home Care Subsidies
Each year, in July, the asset limits relating to Rest Home Care (also know as Residential Care) subsidies are reviewed. This is the amount that your personal assets need to be below before you will qualify for a government subsidy towards your care. Over the last few years they have been slowly increasing. The asset limits are now:
- If you are single, or both you and your partner are in care, the limit is now $291,825
- If one of you are in care, and you do not want to include your home and car in the assets being assessed, the limit is $159,810
When a loved one moves into Rest Home Care, it is a stressful time for the whole family and the application form for a subsidy is a lengthy document. If you have a Trust or have a life interest in someone’s estate, the information required is quite detailed. We have experience helping clients complete subsidy applications and assisting with questions that family members may have. We also have a Trust Management service which includes reviewing of the gifting made to a Trust and how it may affect a future application for a subsidy.
Probate Threshold
Another limit that is increasing in September 2025 is the amount over which a deceased estate is required to have a probate order. Probate is an order from the High Court authorising the executors of an estate to administer the assets.
For many years the limit has been $15,000. This meant if an estate has any asset which is more than $15,000 the court order was needed. With the increase in savings such as Kiwisaver more and more small estates were tipping over that threshold. The legal and court fees in such small estates cause concern to many families. The new limit is $40,000 which is a welcome increase. Our estates team are very experienced in applying for probate when it is needed and assisting with administration of estates.
Retirement Villages – Continuity of Care
One of the things that many people look at, when choosing a Retirement Village to purchase a villa or apartment in, is continuity of care. This form of accommodation is held under an Occupation Right Agreement (ORA) and many villages also have Rest Home, Hospital, and Dementia level care on the same site.
A selling point can be that if one of a couple needs higher level care they can move within the same village. With recent news in Christchurch of two villages closing their onsite care facilities it is a good reminder that continuing care is always subject to availability. We have experience advising on all aspects of ORA’s for Retirement Villages and encourage clients to talk to us early on in the process before they have their heart set on a particular villa or apartment.
Jo Mechaelis-Wall, Associate Lawyer, specialises in Senior Law and assisting families with estate planning. Jo sees clients in both our Riccarton and Rolleston offices.
Published August 2025.
