External
Policy
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
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
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.