Most New Zealand couples own their family home as joint tenants. It feels natural — you built it together, you live in it together, and when one of you passes away, it automatically transfers to the other. Simple. Clean. No fuss. But for couples thinking about retirement, residential care, and what happens to their estate — joint tenancy isn't always the right structure. And in some situations, it can leave one spouse significantly worse off. Here's what to understand. What Joint Tenancy Actually Means When you own a property as joint tenants, you don't each own a defined share. You both own the whole property together, and when one owner dies, their interest automatically passes to the surviving owner — regardless of what their will says. This is called the right of survivorship. For many couples, this is exactly what they want. But it creates a problem when residential care enters the picture. The Residential Care Problem If one spouse needs to move into residential care — a rest home or hospital-level care — the government assesses their assets to determine how much they need to contribute to the cost of that care. Under current WINZ means testing rules, the family home is treated differently depending on whether the other spouse is still living in it. If the partner remains living at home, the property is generally exempt from the asset assessment — up to a certain threshold. But if both spouses enter care, or the home is sold, the full value of the property can be counted as an asset. This is where the structure of ownership matters enormously. Severing the Joint Tenancy — What It Means and Why It Helps Severing a joint tenancy means converting the ownership from joint tenancy to tenants in common. Each spouse now owns a defined share — typically 50/50 — and that share can be dealt with separately in their will. Why does this matter for residential care? Because when the first spouse passes away, their share of the property doesn't automatically transfer to the surviving spouse. Instead, it passes according to their will — which might direct it into a trust, or grant a life interest to the surviving spouse. Life Interests — The Protective Structure A life interest is a right granted to a person to live in or benefit from a property for the rest of their life, without owning it outright. Here's how it works in practice. When the first spouse dies, their share of the home passes — not to the surviving spouse outright — but into a structure that grants the surviving spouse a life interest. They can continue living in the home for the rest of their life. But they don't own that share of the property. Why does this matter? Because when the surviving spouse later applies for residential care assistance, the share of the property that passed through the deceased spouse's estate — and is now held subject to the life interest — may not be counted as an asset in the means test. This can make a significant difference to how much residential care assistance the surviving spouse qualifies for. A Real Example Take a couple in their early 70s — John and Margaret. They own their family home jointly, worth $900,000. John passes away first. Under a standard joint tenancy, his share automatically transfers to Margaret. She now owns the whole property outright. Years later, Margaret's health declines and she moves into residential care. At that point, the full value of the home is counted as her asset in the WINZ means test — and she's required to contribute significantly toward her care costs before any assistance kicks in. Now consider what happens if John and Margaret had severed the joint tenancy earlier and John's will directed his share into a trust with a life interest for Margaret. When John dies, his share passes into the trust. Margaret has a life interest — she continues living in the family home exactly as before. Nothing changes day to day. When Margaret eventually moves into residential care, the life interest expires. She's no longer living in the home, so the right to occupy it ends. John's share then passes to the beneficiaries of his estate — typically the children. Crucially, because Margaret never owned John's share outright, that share is not counted as her asset in the residential care means test. Margaret still needs to exhaust her own savings and cash assets down to the current WINZ threshold — but John's share of the home is protected. Over a residential care stay of several years, the difference can be tens of thousands of dollars — sometimes significantly more depending on the property value and length of care required. When Should You Think About This? Ideally, before either spouse has any health concerns. Once someone is already in care or has been assessed, the options narrow significantly and there are look-back rules that can apply. If you're in your 50s or 60s and haven't reviewed your ownership structure, it's worth doing now — while all options are available and there's no urgency or pressure. Key triggers to act: You've never reviewed how your home is owned One or both of you has a family history of conditions requiring long-term care You're approaching retirement and thinking about estate planning You have children from a previous relationship and want to make sure their inheritance is protected Getting It Right Severing a joint tenancy and putting a life interest structure in place involves legal documentation and should be done properly. It also needs to work alongside your will, any trusts you have, and your overall estate plan. This isn't something to DIY. But it also isn't as complicated or expensive as most people assume. If you'd like to understand whether this structure makes sense for your situation, book a no-obligation strategy session. We'll look at the full picture and point you in the right direction. Protection Partners Limited is a referral service. We connect New Zealanders with trusted legal and advisory partners. We do not provide legal advice. Independent legal advice is recommended before making any changes to property ownership or estate planning structures.

Is a Reverse Mortgage Right for You? A reverse mortgage is one of those financial products that polarises people. Some see it as a lifeline — a way to access the equity they've spent decades building, without having to sell the home they love. Others are wary — worried about what it means for their estate, their children's inheritance, or whether they're making a decision they'll regret. The truth, as with most financial products, sits somewhere in the middle. A reverse mortgage is neither the answer to everything nor something to be feared. It's a tool — and like any tool, whether it's right for you depends entirely on your situation. Here's a framework for thinking it through honestly. What a Reverse Mortgage Actually Is A reverse mortgage allows homeowners aged 60 and over to borrow against the equity in their home, without making regular repayments. The loan — plus compounding interest — is repaid when you sell the home, move into permanent care, or pass away. It's important to be clear: this is still a loan. It's not free money. But for many New Zealanders who have watched their property values grow significantly over the past two decades, it's a way to access real value that's sitting in their home — value they've built up over a lifetime. You remain the registered owner of the property throughout. You can continue living in your home for as long as you choose. And under the no negative equity guarantee, you'll never owe more than the value of the home when it's sold. The amount you can borrow depends on your age and the value of your property — generally between 20% at age 60 and 45% at age 85. Protecting What You Want to Leave Behind One concern people often raise is what a reverse mortgage means for their estate and their children's inheritance. The good news is that lenders offer an equity protection option — you can choose to protect a set percentage of your home's value (up to 50%) so that portion is guaranteed to remain for your estate regardless of how the loan grows over time. This reduces the maximum amount you can borrow, but it gives you certainty about what will be left. For people who want to access equity while still leaving something meaningful behind, this is worth understanding properly before making any decisions. When It Can Make a Lot of Sense A reverse mortgage tends to work well for people in specific situations. You're asset rich but cash poor. Your home is worth $800,000 or more. Your savings are modest. New Zealand Superannuation covers the basics, but there's no buffer for unexpected costs, healthcare, or simply enjoying your retirement. A reverse mortgage gives you access to capital without requiring you to sell. You want to stay in your home. Downsizing is the most common alternative — but it's not always the right one. Moving is expensive, emotionally difficult, and the proceeds aren't always as substantial as people expect once agent fees, legal costs, and the purchase of a new property are factored in. If staying in your home matters to you, a reverse mortgage preserves that option. You have a specific, defined need for funds. Home modifications for accessibility, healthcare costs, helping a child with a deposit, clearing a remaining debt. A reverse mortgage used for a specific purpose tends to work more cleanly and leaves the compound interest effect more manageable and predictable. Your family is supportive and informed. The best reverse mortgage decisions are made with family in the room. When everyone understands what's happening, why it makes sense, and what the numbers look like over time — there are no surprises and no resentment later. When You Should Think Carefully A reverse mortgage isn't right for everyone. Here are the situations that warrant careful consideration. You want to leave the home to your children . A reverse mortgage reduces the equity in your home over time as interest compounds. If leaving the family home intact as an inheritance is a priority, you need to model what the loan balance looks like at different points — and consider whether the equity protection option is the right fit. You're considering it to fund ongoing lifestyle expenses over many years. Using a reverse mortgage to supplement income over a long period means the loan balance grows steadily. Over an extended timeframe this can significantly erode equity. There may be better options worth exploring first. Financial vulnerability and abuse. Accessing a significant sum of money later in life can bring unexpected risks. Some people aren't used to managing large amounts and can be targeted by scams. Others find themselves subject to pressure from family members — whether intentional or not — to share or hand over funds. Elder financial abuse is more common than most people realise, and it doesn't always come from strangers. Having a trusted, independent adviser involved in the process is one of the best ways to protect yourself and make sure the decision — and the money — stays yours. Gifting implications. If you're planning to gift some of the funds to family members, be aware there can be implications for residential care means testing and relationship property. Getting the right advice before any gifting takes place protects everyone involved. The Questions Worth Asking Before making any decision, work through these honestly: What do I need the money for, and is this the best way to access it? What does the loan balance look like in 5, 10, and 15 years — and am I comfortable with that? Do I want to protect a portion of my home's value for my estate? Have I talked this through with my family? Have I considered all the alternatives — downsizing, other lending, adjusting my budget? There are no right or wrong answers. But working through these questions with someone who will give you a straight answer — rather than just process your application — is how you make a decision you'll feel good about. Protection Partners Limited is a referral service. We connect New Zealanders with trusted lending and advisory partners. We do not provide financial advice. Independent financial and legal advice is recommended before making any significant financial decision.

As a self-employed person, managing your finances and protecting your assets is crucial. One effective way to achieve this is by establishing a family trust. A family trust serves as a mechanism for holding assets, ensuring that your property is managed for the benefit of beneficiaries (which usually includes you). Here’s why a family trust is essential for self-employed individuals, particularly those facing risks from creditors or operating in industries where some risks are not covered by insurance i.e. WorkSafe fines.

Blended families and second relationships are becoming increasingly common in New Zealand; however, the default provisions of the Property Relationships Act 1976 may not fairly protect people entering a second relationship. When partners from previous relationships come together, especially with children in the mix, thoughtful planning is needed to ensure that everyone's needs are met and potential conflicts are identified and addressed. This can prevent a significant amount of stress and costs. Here are some key things to consider if you’re in a second relationship: