Gifting in recognition of care

If allowable gifting during the gifting period is less than $42,500 as of 1 July 2026 a gift in recognition of care may be considered as an allowable gift.

Gifts may be made by the client or partner (living or deceased) to another person who has provided a high level of care to the client.

A gift in recognition of care may be regarded as an allowable gift if it meets all the following criteria:

• the gift was made within the 12-month period immediately before the client's date of application for Residential Care Subsidy
• the client received care for a continuous period of at least 12 months during the gifting period
• the client lived in the same household as the person providing the care
• the gift was made to the person who provided the care
• the client had the care provided to them by a person, who is not their partner or dependent child
• the client received a high level of care in the form of necessary assistance around the home, for example, personal care such as assistance with bathing and toileting, domestic assistance
• the client did not receive any Ministry of Health funded home-based disability support services, while living in the home including Home Support (this includes household management, domestic assistance or personal assistance), meals on wheels or other Ministry of Health home-based assistance and
• the client remained in their home, as crucial care was provided which delayed the need to access Ministry of Health funded residential care

Note clients getting Carer Support (formerly Aid to Families, Respite Care, Alternative Care or 90-days relief) can still qualify for the gifting in recognition of care.

A gift in recognition of care must be made within the 12 months before the clients application for Residential Care Subsidy. Gifts in recognition of care can be up to $8,500 (as at 1 July 2026) for each 12-month period of care received.

For previous gifting amounts see:

• Allowable gifting amounts

Gifts in recognition of care, when combined with other allowable gifting in the gifting period, cannot exceed $42,500.

The allowable gifting limit in recognition of care applies to a couple regardless of whether both have applied. The limits do not double if both partners gift in recognition of care and each apply for Residential Care Subsidy.

A client who meets all the criteria for gifting in recognition of care has applied for a Residential Care Subsidy on 2 September 2026.

The client received care for the past 3 years from their child and made a gift of $18,000 to them in recognition of this care on the 2 August 2026 (within the 12 months immediately before the client's application for Residential Care Subsidy).

The client also gifted $12,000, 2 years ago on 22 September 2024 to their sibling.

During the 5-year gifting period, a client can gift up to $8,500 per year. The client can also make additional gifts in recognition of care up to a maximum of $42,500 during the gifting period (if total gifting does not exceed $42,500).

Allowable gifting in recognition of care is 3 years x $8,500 = $25,500.

Because total gifting ($18,000 + $12,000) within the gifting period does not exceed $42,500, all gifting is allowable.