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Residential Care Subsidy : Contents

Income from life interest or lease for life

A life interest gives the holder (known as the life tenant) specified or full rights of occupation and enjoyment of the asset. The life tenant can surrender the interest at any time however they cannot gift it by will, as it ends at the time of their death.

When a client (or their partner) is receiving income from a life interest or lease for life the income must be included in the means assessment of income, unless the income from assets exemption applies.

If the life interest or lease for life is not a realisable asset it is not included in the means assessment of assets, and the income from assets exemption cannot be applied.

For more information see:

Legislation

  • Applicable asset thresholds part 1 schedule 2, Residential Care and Disability Support Services Act 2018
  • income from assets exemption (definition) clause 5 schedule 2, Residential Care and Disability Support Services Act 2018
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