I have recently ended a long term lease in a retirement village. I received back my premium paid when I entered. I am now wanting go into permanent care. This money will go towards the RAD payment, but if I fill out the Centrelink before this, this amount will be classed as interest earning assets, whereas in actual fact I will no longer have it. Is it an easy matter to clear this matter up with Centrelink once I am in a care facility.
Thanks for your patience. We checked in with Robert Craven from Affinity Aged Care Financial Services and he had some great insight for you.
In theory, the proceeds of the sale of the retirement village unit should be exempt from the assets test for up to 12 months as the proceeds are being held to pay a RAD. However, the proceeds will be deemed under the income test from the date of settlement until the RAD is paid. We say in theory because we would be very pleasantly surprised if this was the outcome of the assessment without the intervention of an Aged Care Financial Services advisor. At least knowing that this should be the case is a start as you know what to fight for.
Centrelink should have been advised within 14 days after you received back your premium from your retirement village. If any pension payments in excess of their entitlement were made from the date of the repayment Cenrelink will claw back. The RAD will be exempt from both the assets and income tests for the age pension but it will be included as an asset for the Means Tested Care Fee calculation.
With regards to this being an easy matter to clear up with Centrelink, well make sure you have patience, because clearing things up with Centrelink can always be a bit frustrating, but at least you are clearer on where things stand. I really would advise seeking advice from a Financial Advisor who specialises in aged care, especially if things get complicated, they are there to provide you their assistance.
Good luck with it Vera.
All the best,
The Agedcare101 Team
Thanks for your question. We are just getting some advice on this one. We will be back to you in a couple of days with the answer.
the agedcare101 team