Mum stays home Dad moves to Nursing Home

General
1

Hi
I would like to know if possible what happens if Mum stays at home and Dad who has dementia moves to a nursing home.
Their assets are the family home worth $750,00.
Cash and investments about $200,000 (anyway it’s an amount that gives them about 80% of the full aged pension). A car worth $5000.
Non pension Income per year is about $5000.
The questions I have are:

  1. If Dad moves to a nursing home, will he have to pay a bond? They think it will be $400,000.
  2. If they get a reverse mortgage to pay a bond, does that impact their pension.
  3. What pension will mum get given that the separation is due to ill health.
  4. I read that there is a Centrelink reverse morgtgae type option if you are not on the full pension. Could they qualify for that and might this be better than a reverse mortgage from a bank, I know the interest rate is lower but I understand that the amount is added to their fortnightly pension. That extra fortnightly payment might help meet the cost payable to the nursing home if they can’t afford to pay the bond and pay inteest instead. It would mean that they would be paying the Centrelink interest rate of about 5% and using that to pay the nursing home rate.
    Thank you.
2

Hi dmor12,
Don Swanborough at Affinity Aged Care Financial Services has replied to your questions below:1. If Dad moves to a nursing home, will he have to pay a bond? They think it will be $400,000. Mum will be a protected person and so the house is not assessed for aged care fees if she remains in it. Based on their current joint assets Dad will not be asked to pay a bond or Residential Accommodation Deposit (RAD) as it is now called. Dad will be a partially supported resident and will be asked to pay either a Daily Accommodation Contribution (DAC) or Refundable Accommodation Contribution (RAC). This is based on the facility’s accommodation supplement depending on whether they are a standard or newly refurbished facility. 2. If they get a reverse mortgage to pay a bond, does that impact their pension. No, providing you use the funds for the RAC or RAD. The RAD or RAC is not counted for age pension purposes.3. What pension will mum get given that the separation is ey will be considered an illness separated couple and could receive up to $888.30 pension each per fortnight depending on their assets or income. 4. I read that there is a Centrelink reverse mortgage type option if you are not on the full pension. Could they qualify for that and might this be better than a reverse mortgage from a bank, I know the interest rate is lower but I understand that the amount is added to their fortnightly pension. That extra fortnightly payment might help meet the cost payable to the nursing home if they can’t afford to pay the bond and pay interest instead. It would mean that they would be paying the Centrelink interest rate of about 5% and using that to pay the nursing home rate.- There is a Centrelink pension loan scheme. It is dependent on meeting certain conditions. As it can be complex we recommend you make an appointment with a Centrelink Financial Services (FIS) officer through your local Centrelink office who will discuss the conditions and terms with you.

Further details can be found at

I hope that helps,
Regards the Agedcare101 Team

3

Thank you Jill.

4

Hi dmor12,I have passd on your query to our expert advisers at Affinity Aged care financial services. They should have an answer for you promptly.regards