For the past thirty years, Partner at Godfreys Law, Phil Sewell has been helping Christchurch families and couples into first homes, investment homes, and retirement homes.
A question we’re hearing more often at Godfreys Law is from parents wanting to help their adult children get on the Christchurch property ladder by giving them money towards the deposit on their first home.
Risks Around Gifting Money
Only people who are well-enough placed should be doing that. You may live to be 90 years old and you may need that money later. Another risk is that the money given to your children is poorly invested, or in the event of a relationship ending their ex-partner can walk away with half of the money you gave.
Also, later in life if you’re considering moving into a Christchurch rest-home or retirement village, money given away earlier can create big problems.
WINZ, which administers the scheme for paying rest home fees, is very careful not to pay the subsidy for people who have deliberately given away their money. So if you were contemplating giving away a large sum of money to help your child or children with that deposit for a first home, you may knock yourselves out of that system.
Customised Gifting Solutions
Small amounts in the range of $27,000 per couple, per year is acceptable within some time limits. There are quite a few rules to be aware of though.
At Godfreys Law, our team has dealt with these kinds of issues for many families over many years. We have lots of ideas and solutions because it’s not a case of one package fits all. We will go through the options and find the best solution for you, your family and your circumstances.
Before you agree to pay for that deposit, come in and have a chat with a member of the elder law team at Godfreys Law by calling us on 03 366 7469. We can help you find a solution that allows you to look after your children or guardians while still making sure you take care of yourself.
Prev Article