- A gift is something given when:
- Nothing is received in return; or
- Something is received in return, but its value is less than the value of the property given.
- If something of lesser value is given in return for a gift, the value of the gift is the difference between the two values.
- Transfers of any items (for example, company shares or land).
- Any form of payment.
- Creation of a trust.
- A forgiveness or reduction of debt.
- Allowing a debt to remain outstanding so that it can't be collected by normal legal action.
If you propose to make a gift to a trust, please contact us to discuss the implications. It is important to take into consideration what the trust, and the gifts to the trust are designed to achieve as part of a long-term strategy.
Please be aware that there is a $6,500 annual gifting limit for a gifting period of 5 years before going into care for rest home subsidy purposes.
For more information on gifting please give us a call or refer to the Inland Revenue guide on Trusts and estates income tax rules (IR288)