Disregarded Assets Relating to Interests

Assessing life interests

The value of any life interest of a person is a disregarded asset unless it was created:

• by the person,
• by the person's partner, or
• on the death of the person's partner.

When the life interest is in a person's principal home, the value of the interest is a disregarded asset.

Assessing contingent, remainder or reversionary interests

The value of any contingent, remainder or reversionary interest is a disregarded asset unless it was created by:

• the person,
• the person's partner, or
• both the person and their partner.

Assessing granny flat interests

A person's granny flat interest in their principal home is a disregarded asset if the interest was acquired:

• before 22 August 1990 and gives the person security of tenure in the home, or
• on or after 22 August 1990 and the entry contribution was more than the extra allowable amount.    
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  Assessment of the granny flat interest

  Section 9.2.5

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Sale leaseback interest

A person's right or interest in a sale leaseback home is a disregarded asset (i.e. the person is taken to be a home owner) if the:

• person is the sale leaseback resident, and
• value of the person's remaining interest in the home is more than the extra allowable amount.    
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  Assessment of a sale leaseback interest

  9.2.5/Sale Leaseback Arrangements

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Actuarial valuations

Actuarial valuations are required for the following:

• a life interest created by the person, the person's partner, or on the death of the person's partner (other than a life interest in their principal home), or
• a life interest surrendered for disposal purposes, or
• a contingent interest, remainder interest, or reversionary interest created by a person or acquired for valuable consideration.