Hi, My 92 year old father is in an aged care facility - we paid the $450,000 RAD and pay $85 per day. He receives a full pension. My 91 yr old mother still lives in their home and receives the full pension. They have other assets of $150,000.
We are now in a situation where my mother may need to go into the aged care facility. If this happens will they lose the pension as we will have to sell the family home to pay her RAD ? Will the value of their home make them unentitled for the pension and increase their daily fee? Dad pays $5 per day as the asset assessed part of his fees.
AgedCare101 is not allowed to give financial advice but from your question the first suggestion I would make is to approach the aged care home where your father is to see if you can negotiate a shared room (if there is availability and your parents are open to that option) as this way you can potentially reduce the RAD for your mother from my understanding. For the purpose of the Income and Assets assessment the value of the family home is capped at $168,351.20 (as at 20 March 2019) or the net market value of the home if lower than that figure. As part of a couple half the combined income and assets of both members of the couple are included in the assessment. Depending on your parents’ financial situation, once the home is sold, it is possible that their pension and hence means tested fee will be affected. Also their RADs will be considered an asset. You could call Department Human Services Income and Assets division on 1800 227 475 to help clarify this. We always strongly recommend that people specialised aged care financial advice from people such as Affinity Aged Care Financial Services.