Hi, my dad is on cancer 4th stage with brain metastases, oncologist has given up on treatment so he now needs to transfer from hospital to the aged care centre.
We have been given the form to fill for asset test purpose. But I am not sure how to fill this form due to the complicity of my parents’ current circumstance.
My mum has one property under her name for owner occupied that worth for 750k, with 400k loan And 200k in the offset account.
My dad has one property under his name but the property was actually not belong to him, it was originally belong to one of our friend overseas (non resident). The property has been purchased under my dad’s name last year because at the time my friend couldn’t get the loan done (all major bank stop accepting non resident with loan application last year)
Now we are selling this property and when the sales completed, there should be around 250k cash (this money basically was transferred from our friend from oversea last year to complete the purchase transaction), and we are going to return to him.
According to the asset test, this property is under my dad’s name and this $250k is his “asset”, but it is really not belong to him.
We had a private agreement between my dad and the friend, stating the money belongs to him and all the proceeding of sales shall be return to the friend, and we had all bank transactions showing the money was sent from overseas, do you think this would be sufficient to proof the $250k does not belong to my dad hence can be exclude from the asset test?
Also, does Mum’s $200k in the offset account also can be exclude from the test? since the loan Is 400k already.
Or must her pay the 200k back into The loan before we can exclude this out?
thanks a lot
Hi there,
Thanks for your patience with our response. We appreciate this is a very difficult time for you and your family. Our friends from Affinity Aged Care have been able to offer some information on your situation.
The owner-occupied home will not be assessed for either the aged care or the age pension assessment while the residents partner (a protected person) is living there. The $200,000 in the offset account is fully assessable (50%/50% to the couple) & would only be excluded if it was used to reduce the loan.
An investment property in a residents name will be assessable at the market value, less any registered mortgage. If the family could provide documentary evidence that an additional loan was used to purchase the property to the extent that it was geared to 100% of the purchase price, Centrelink may deem the property to have no value. However, a private agreement would probably not be sufficient so the $250,000 will most likely bassessed to each member of the couple.
Your situation is complex so it would be a good idea to seek some financial advice.
We hope that helps,The agedcare101