How will selling the family home affects dad's subsidised aged care?

Hello All,
My dad has been in fully funded aged care for almost 2 years. My mum still lives in the home owned by them both but it is looking like she will need to sell the house to be closer to me (she wants to retain as much independance as she can) so I can help her as her health is not too good.
The house value is approimately $300,000. If we are to sell the home how will this amount affect dad’s aged care funding? I need to make sure that mum will have enough to live off (rent a flat etc.). I am not sure what the implications will be.
I appreciate any feedback on this as until I can see a financial adviser to assist I have no idea.
Thank you …

Hi Just Janelle. I am pleased to see that you plan to see a financial adviser which is always strongly recommended particularly as your mother is thinking of selling the family home to move closer to you. My understanding is that as soon as you sell the family home it will be seen as an asset and have implications for your fathers aged care fees. As you would know whilst your mother lives in the family home she is considered a “protected person” and the value of the home is not included in your fathers assets for aged care purposes - means tested care fees or the accommodation fees. A financial adviser would be able to advise your mother as to the implications of selling her home (and then either renting or buying another house) on her protected person status and your fathers fees . They will advise your mother on her options ie as to whether there are any benefits around leaving the house empty or renting it out whilst she rents elsewhere etc. You also have to consider any implications of these decisions on the age pension. The list goes on. Everyone’s financial circumstances are different and working out the best solution for everyone involved is not simple when it comes to aged care fees. For this reason we always recommend you see a financial adviser who specialises in the aged care sector. You don’t mention which state in Australia you live and I’m not sure if you have already arranged a meeting with an adviser but aged Care website provides a list of specialist advisers across Australia as a starting point. You put in your preferred post code to find an adviser close to you. You mention that your mother is planning to move due to health concerns. Depending on what financial advice you receive you may want to look at alternative accommodation such as a retirement or rental village which can provide additional support and often a cheaper housing solution than you find in the broader community. There are also serviced apartments which bring services into the home allowing the resident to stay in their home and “age in place”. If your mother is not already doing so she can apply for a Home Care package part subsidised by the Federal Government to assist her in her home. You can read about these options on this web site and also our Retirement Villages directory on the links below. or home care Home Care in Australia | agedcare101. I hope this helps. Kind