Over evaluated assets

Hello, I am seeking aged care for one parent and just beginning the process. My parents own their own home and one will continue to live it while the other goes into a nursing home. Our problem is, my parents own 2 blocks of land that are really useless. They have no access, no electricity, not cleared…nothing. No one in their right mind would ever want them. The cannot sell them and so just pay rates every year. Can’t even sell them for $20 000. Centrelink values them at over $120 000 each so my parents cannot get full pensions and have assets too high to aviod paying a $390 000 deposit to the local nursing home, or an extra $61 per day. They will not even have enough pension to make the regular daily charge of $49, let alone another $61. Time and time again my mother goes to centrelink to explain about this land that no one will buy and just is a cost to them, but to no avail, it is always valued way above what anyone would ever pay for it. Have you any advise for us?

Hi Confused,Here is the reponse to your query from our adviser Affinity Financial ServicesIn this situation we would suggest requesting a review of the valuation of the blocks of land and lodging this request in writing. You would need to provide details as to why you believe the property is overvalued. There is a form calledMOD-R- Real Estate that you can use to provide this information and includes a section to detail circumstances affecting the value of the property.A valuation from a real estate agent or an accredited property valuer may help support your request. Centrelink will then review this request and make a determination. Should Centrelink uphold their decision, you may also be able to apply for Financial Hardship assistance for Residential Aged Care.You would need to prove to Centrelink the blocks of land are unrealisable assets. A Financial Hardship form can be accessed from Centrelinks website. I hope t

Hi Confused,Your parents must be very frustrated with the process. I have passed your question onto our advisers at Affinity Financial Services. I will post their response as soon as available.RegardsJill