My Father has been in an aged care facility for 1 year and I am paying the difference from the pension contribution and the facility fee. I beleive this is known as a private patient? Mother has already passed.
I am informed that we have 2 years from date of entry to sell the house and take up RAD from the proceeds. The house is roughtly $1.2M in value. If I sell it in the meantime and pay the $350K for RAD to the facility, what is the effect on her pension? Is the full amount taken as an asset once sold? Or is the sale amount or value amount less RAD taken into account re pension entitlement. He has no other assets.
My brother is currently living in the house and not paying rent. Prior to this time, he cared for my Father.
Thank you in advance
Thank you for the advice, much appreciated:)
Hi Trent,
Thank you for your question. I couldn’t recommend enough that you speak to a Financial Advisor that specialises in Aged Care. While it might seem like an added cost you’d rather not deal with, they could advise you in certain ways that significantly alter your financial situation. A Financial Advisor who specialises in Aged Care can advise on the best way for you to make RAD payments and recommend ways that help protect your mum’s pension. Also, I imagine they would ask questions about your brother who lives in the house. If your brother received a carer’s allowance while he cared for your father, then this changes things too. All these questions and more affect what the Financial Advisor recommendation. We hope this helps.