Means Test - Family Home

Hi my mother is in an aged care home with dementia and my dad still lives in the family home on his own. He is 86. He wants to start planning for when he also may need to go to aged care. He is concerned about how the house value will affect his accomodation costs. From your very informative website I see that for the means test the government caps the home at roughly $159,000 for home over that value. I am curious if my father goes to aged care and we don’t sell the house this is the capped amount for the asset correct?. However if we sell the house all the proceeds minus and aged care deposits will count as an asset as which will be a lot more. and raise the care fee.ThanksAndrew

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My MIL currently lives with BIL he is her sole carer, she is at the moment in hospital after breaking her hip and has dementia. They will not sell the family home as BIL has lived there since FIL passed 15 years ago and has become MIl sole carer since she has developed dementia, he has never received a carer benefit and will not apply for one and will not be considered a protected person as he shares ownership of another property with his brother. There are 3 brother who will share the payment which is the reason we want to know about the RAD/DAP and maximum lifetime payment which was the questioned asked and the one thing that wasn’t answered. We have approach financial adviser and they have directed back to government website as there is no assets for them to invest so basically not

Hi regal 23,Robert Craven from Affinity Aged Care Financial Services who are our expert advisers has responded to your question as follows:Whilst your father remains in the family home he will be considered a “protected person” and the home will be excluded from the asset test when centrelink assess your mother’s care fees.If your father also moves to an aged care home and your parents retain their home, its value will be capped at an indexed rate, currently $159,631.20 for each of them.If they sell the home, the proceeds will be assessed 50% each because both the Refundable Accommodation Deposit (RAD) and the residual sale proceeds are included in the asset test when Centrelink assess their means tested care fees.However you shouldn’t consider this in isolation. Lots of factors come into play including the possible impact on their age pension entitlements. Sometimes, if the house is sold to pay the RAD, the savings from the Daily Accommodation Payment (DAP) could be significantly greater then the increase in the means tested care fees.You should get professional advice from a specialist aged care financial adviser before making a final decision.I hope that helpsRegards

Hi regal 23,I have put your question to Affinity Aged Care Financial Services also. I should have a reply soon. My apologies for the delay.RegardsJill