My mother is about to go into aged care. Her home, which she owns will not be counted as an asset for aged care. She wil not have ot sell her home as my brother lives there and meets criteria as a “protected person”. However I believe after 2 years, her home will be counted as an asset for calculation of her aged pension . This will mean she might need more funds to pay the Basic Daily care fee to aged care favility out of her limited savings . How do i find out how her pension will be affected? Calls to centrelink which I will make soon take forever… and it is very hard to find the info on their website. I live in NSW. I wonder if there is a direct link to appropriate Government website or if anyone knows the formula they use, when a home becomes counted as an asset.?
I am worried that she might go into a room that she can afford now, but will not be able to afford later. I don’t know what happens when she runs out of money in her account to pay the DAP.
Hi Vicki,As your mothers situation sounds quite complex, we strongly suggest speaking to a financial advisor specialising in aged care.We recommend visiting Financial support and advice | My Aged Care for some options, they have a free service to help you make informed decisions.We hope that helps,the agedcare10
Thanks for your informative answer
Thanks for your informative answer
Thank you so much for your amazing advice. I am guessing then that after 2 years we would have to sell the family home to pay for any aged care as she would not qualify for hardship if the family home was an asset, is that correct ? If after 2 years Mum had to sell the house to pay for aged care she would then have money for better aged accommodation. But I think even though she would then have more cash she would continue to be a supported resident and only be eligible for nursing home rooms in price bracket of supported residents,(even if we want a better room and then have funds to be a standard resident after sale of home ) As Mum would not be receiving pension, would she be allowed to buy a unit for her son , the protected person who has no income and has lived all his life in the family home.(with my help … we have EPOA )
Hello Vicki,Thanks for your question.You will be considered a Protected Person if you;-are a close relative who is eligible to receive an Australian Government income support payment and have been living in your mothers home for the past 5 years.-are a carer who is eligible to receive an Australian Government income support payment and have been living in your mothers home for the past 2 years.It is my belief that receiving this Government Income Support Payment is key. You must continue to be in receipt of a Centrelink or DVA income support payment to qualify as a Protected Person.If you have not been claiming this support then you would need to check with the Department of Human Services to see if you really do qualify as a Protected Person.If you are indeed a Protected Person then it is our belief that you can stay in the house indefinitely and it will continue to be an exempt asset for the means tested care fee while you reside there and retain your Protecteou fail to qualify as a Protected Person, the home will be assessed at the capped rate (currently $178,839.20) when assessing your mothers means tested care fee and will continue to be assessed at this capped rate indefinitely.Regardless of your status, the home will be exempt from the age pension asset test for 2 years and your mother will be assessed as a homeowner. However, at the end of the 2 year exemption period, your mothers home will be assessed at its then current market value and she will be assessed as a non-homeowner. In all probability she will lose her pension after 2 years (unless she is in receipt of a blind pension or a DVA war widows pension). This will not affect her means tested care fee, only her pension. The only time the home is exempt from the 2 year rule for the pension asset test is if a spouse continues to live in the home and then the 2 year exemption commences from the time that the spouse ceases to reside there. For inking to a Financial Advisor who specialises in Aged Care. It is best to speak to a few different Financial Advisors and see who you feel most comfortable with. Make sure you are comfortable with talking with them and be honest. Once you commit to an Advisor, be fully transparent about your finances otherwise they are not able to best advise you on your options. Hope that helps, The Aged Care 101 Team