Gifting

Gifting describes gifts of real or personal property including assets, income and cash that the client or their partner (living or deceased) gives away.

This can be by:

• an established gifting programme with an Acknowledgement of Debt and/or Inland Revenue Gifting Statements (which were required to be filed until October 2011) or
• assets, income or cash being given to another person or entity

Gifting is assessed on the facts and on what the client or their partner (living or deceased) have done, not what they intended to do or intend to do in the future. Intended gifts or gifts not completed cannot be assessed.

The 5-year period immediately before the Residential Care Subsidy application is called the 'gifting period'. During the gifting period, a client and their partner (living or deceased) can gift up to a certain amount of assets or income per year, per application without it affecting their financial means assessment.

This allowable gifting amount can only be applied from the date of the first gift, within the 5-year gifting period.

Gifts over the allowable gifting amount (excess gifts) must be included in the means assessment of assets. There is no discretion not to include excess gifts made during the gifting period.

The allowable gifting amount within the 5-year gifting period is $8,500 per year from 1 July 2026.

For previous allowable gifting amounts, see:

• Allowable gifting amounts

The allowable gifting amount is up to $8,500 per year, per application, within the 5 year gifting period.

This limit applies regardless of whether a client is single, or has a spouse or partner.

If only one application is received for a client with a partner, the allowable gifting amount is not $8,500 per year each but is a total of $8,500 for both.

If both clients apply for a Residential Care Subsidy, then each client can have gifted $8,500 per year.

Before the 5-year gifting period, gifting up to $27,000 in any one year is allowed. For couples this is not $27,000 per year each but is a total of $27,000 for both.

Any gifting over this amount each year is considered deprivation. At MSD's discretion, it may be included in the means assessment of assets.

Gifts in recognition of care can be allowable gifts provided they meet set criteria.

These gifts are included in the allowed maximum gifting of $42,500 in the 5 year gifting period (as at 1 July 2026), along with any other gifts the client or their partner have made.

There is no extra allowance for gifts made in recognition of care.