Hi everyone,
I have question regarding Dad’s shack and Dad going into an Aged Care home.
Family are going to sell the shack to pay for the RAD. The RAD is $275,000 and there will be $200,00 left over from the sale.
Dad receives approx 70% of aged care pension.
How will this affect his pension, assessts test and how does centrelink treat his home.
He does not have a partner or a carer.
Regards,
Debs.
Hi again Debs,
Affinity Aged Care Financial Services have been able to provide some answers for you. Here we have assumed that your dad’s shack is his principal place of residence. 'Family are going to sell the shack to pay for the RAD. The RAD is $275,000 and there will be $200,00 left over from the sale. '‘Dad receives approx 70% of aged care pension’. This would assume he has other assets and/or income in addition to the proceeds left over from his home sale. 'How will this affect his pension, assets test and how does centrelink treat his home? 'The RAD is an exempt asset for age pension purposes however it will be assessed for his means tested care fee ( his co- contribution to his care costs). On sale of his home he will be considered to a single non homeowner and can currently hold $456,750 in assessable assets before it affects his age pension. Up till then his home is not assessed for Centrelink age pension purposes. Currently $162,087 of the family home is assessable for the fee in aged care until it is sold. However on sale his cash and/or other financial investments will be deemed for age pension purposes. He can earn up to $168 per fortnight before it is assessed for age pension purposes. Centrelink will assess his eligibility for an age pension based on the test that gives him the less beneficial outcome.
We hope that helps,
The Agedcare101 Team
Hi Debs,I have passed your question onto our expert adviser Affinity Aged Care Financial Services and will get back to you as soon as possible.RegardsJill