Hello and good morning,
I would greatly appreciate your opinion regarding the following.
Until recently my sister and I have been living in the family home for over 80 years.
We are joint tennants. She is now a resident of a nursing home. We are both receiving a part pension
Is is correct that I will be regarded as a protected person, and the home will be not regarded as an asset for 2 years; and after that period it will be assessed as an asset and capped at $ 171,535.20 ( 20 March 2020)?
Being joint tennants will my sister’s asset be valued at 50% of that amount?
Thank you for your quick response and your advice.
In answer to your questions my understanding is as follows but I hasten to add I have no knowledge of the rules around joint tenancy and am not qualified to give financial advice so I would strongly recommend you call the Department Human Services (DHS) Income and Assets division on 1800 227 475 to clarify all of this or a specialist aged care financial adviser if you require further assistance. If you have “protected person” status then my understanding is that you can stay in the family home indefinitely and it will continue to be an exempt asset for the means tested fee while you reside there and keep that status (ie until your sister leaves the aged care home).To be a protected person you must either be:-the persons partner or dependent child-the persons carer who has lived in the family home for the past two years and during that time would be eligible for an income support payment-A persons close relative who has lived in the family home for the past 5 years and during that time would be eligible for an income support payment. If you fail to qualify for protected person status the home will be assessed at a capped value of $171,535.20 (as of 20 March 2020.) for the purpose of the income and assets assessment for aged care fees ie the means tested fee. If the home is sold the full value will be assessed for the means tested fee. If you are a member of a couple each of you is seen as eqlue of the home and the capped value is applied to each half. If you are a protected person then my understanding is that the family home is likely to be exempt from the age pension asset calculation. However if the home is not occupied by a protected person the home will be included for age pension assets purposes after two years from when the partner entered residential care. As I said before I would clarify this with DHS.
Kind regards, Jill