Applying for Financial Hardship - Unrealisable assest

My Mother was placed in a residential age care facility 2 months ago.

4.5 years ago I moved in with Mum when her dementia deteriorated and have been caring for her, preparing food, fixing the house and maintenance and paying for some of her bills, all while working full time. I have been receiving a career allowance since then, up until she was admitted into permanent age care. I still live in the house. Cost of age care forms were submitted with this information and descision was made that mum has $689,672.oo in net assets and a assesssed asset value of $181.207.20 for determining eligibilty for financial assistance. They stated that only part of the principle home was included. I have power of attorney and guadianship that she drafted back in 2008 before she became unwell. Additionally she placed a life interest on her property with me as the beneficiary at that time. It was her intention as stated in her will that house remain in the family and that the property not get sold as it has been her residence for over 65 years.

Currently we are paying $102.45 per day for her age care fees ($52.25 of it is the basic daily fee and the rest is accomodation charge). Her pension does not cover these cost and the extra is paid by me , about $270 per week.

Do we have grounds to qualify for financial hardship, and assess her property as being a unrealisable asset based on the life interest clause and the possiblity of me being classified as a protected person.

I have been in the same position, call aged care human services direct to have the house deemed as a Life interest or Grany Flat agreement between you and your mother. This is a special asset (house) assessment done by their Complex Assessment Team to determined the Life Interest Agreement, which needs to be completed prior to a normal income and assessment test for residential aged care accomadation char

A life interest, know as a “Remainderman,” is a separate legal interest in a property and has a separate value.Such value can be determined by a Qualified Valuer.

Hi aggapi,
My understanding is that if you have assets valued at more than $36,827.70, you may be able to apply for an asset to be declared as unrealisable as part of your hardship assessment. According to the government’s My Aged Care an asset is considered unrealisable if you cannot sell it or borrow against it. The following assets may be considered unrealiseable: a house that has been on the market for 6 months or more a jointly owned property gifting where the decision to gift was made when the person was incapacitated or was made by a Power of Attorney frozen assets. If you go to the Department Human Services (Centrelink) website on Financial Hardship there is very detailed information about the criteria , however “life interest” clause you may need to call Services Australia on 132 300 or 1800 227 475 (for regional callers). Alternatively speak with a specialist aged care financial adviser.
Regards, Jill