Protected person and selling the family home

Hi my mum, dad and sister have been living in the family home, my sister for more than 5 years. My sister receives NDIS pension, my dad the disability pension, my mum the aged pension and carers payment for both husband and daughter. My parents have been in hospital and are now moving into transitional care before deciding on permanent residential care or home care. Can you confirm under the above circumstances if my sister is considered a protected person? Also she too is now in hospital and it is not clear where she will reside once she recovers or how long her recovery will take. Can you advise under these circumstances whether my parents are able to sell their home to move into permanent care and whether their home would be considered exempt as an asset due to the protected person being in hospital indefinitely? If yes who completes the sale process for them? How would this affect their assets and income test? Can they gift their daughter with x amount to assist her with future living arrangements once she has recovered? If yes how much can they gift her with, is there a capped amount…
With thanks

Okay thanks Jill.

What do I need for the income and assets test? | agedcare101 Hi Molly Moo, As your sister has lived in the family home for more than 5 years and is receiving income support she would be classified as a “protected person”. Whilst she is currently in hospital at the moment the expectation is that she will be discharged eventually and so that protected status will be maintained. However it becomes null and void once your sister vacates the family home permanently. If your sister does not return to the family home and your parents move into residential aged care without selling the home it will be assessed at a capped amount of $168,351.20 (as at 20 March 2019). Each member of a couple is seen as equally owning half of the net market value of the home and the cap is applied to each half. Either the cap or the net value of each member’s part of the home will be included as an asset - whichever is lower. If your parents sell the family home the proceeds from the sale will be assessable in the Income and Assets test and may affect their means tested fee. If your parents choose to rent the family home the rent will be subject to the assets assessment which may increase their means tested fee. If your parents gif0,000 in a single year or $30,000 over a period of 5 years it must be included in their income and assets assessment. Regards Jill