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Are you looking for advice regarding gifting a debt (to your trust or otherwise) or making a gift?

It is important to understand what the implications are in a legal climate that no longer attracts “gift duty.”

Pre 1 October 2011

Up until October 2011, “gift duty” was payable on any gift or forgiveness of debt made over $27,000.00 within a 12-month period.

Post October 2011

“Gift duty” has now been abolished with the effect that a gift of any amount can be made without incurring tax. There are however potential asset protection implications in giving away as much as possible as soon as possible.

Before making a gift, it is important to get the right advice as once it is gifted it cannot be undone! Make sure that you fully understand the potential implications that gifting a large sum may attract.

Family Trusts

The possible implications of making an excess gift

Gifting large sums of money to a trust may impact your eligibility to receive the residential care subsidy which assists with the cost of care when going into a rest home.

Depending on your situation if your assets are over the given threshold, you will not be eligible for the subsidy.

Eligibility for the Residential Care Subsidy is just one of the many implications when making a gift, commonly made to a trust or a family member. For this reason, it is recommended you get advice tailored to your situation.

Get in touch with the Collins & May team now!

It is essential that before gifting a large gift to your trust that you receive correct advice. Consult Collins and May Law today!