One of our parents is in Nursing Home paying daily care fee only of $51.63 with other costs fully funded by government assistance as other parent was living in family home at time of income & asset test therefore making it exempt plus other assets etc were under threshold. Parent who was living in home has now passed away meaning home, bank accounts etc are now all assets of parent in nursing home.
After initially believing the death of a parent would impact government funding (requiring sale of family home for nursing home funding) we had been advised there was a 2 year exemption on family home, assets etc. re income/asset assessment. We have received differing advice on this situation & have now received letter from DHS requesting update on financial postion after DHS were notified of the nursing home residents spouses death.
Your opinion would be appreciated for some clarification before contacting DHS as we have been told different things re implications of family home.
Hi GGIL,My understanding is that there is a two year exemption period on the inclusion of the family home in the assets assessment after the spouse living in the home passes away.Should you decide to sell the family home during or after that two year period the proceeds are immediately assessable by Department Human Services .If you keep the family home, after the two year period its value for assessment purposes will be capped at $169,079.20 as of 20 September 2019. This amount is indexed with the single rate of the Age Pension every March and September.For all residents who enter aged care on or after 1 January 2017 and rent their former home the rental income will be assessd under the Income Test. This may have an impact on a resident’s means tested fee and pension entitlements depending on their financial circumstances.Also if you decide to pay a RAD to the aged care home that RAD is included in the assets assessment as well.Because everybody’s financial situation is different and due to the complexities of aged care finances we always strongly recommend that people get specialised aged care financial advice.Regards