I hae been full time Carer for my Mother for 7 years. Can I be classed as a Protected Person if Mum goes into Nursing Home if I have a unit that is rented out
Hello there, In 2019 my mum went into full time aged care in Sydney. At the time she owned her own home outright and was on a full single aged pension (and had been for over 20 years). Mum was assessed as a low means fully supported resident and only required to pay the basic daily fee. My brother who lived at home was classified as a protected person so mum’s home was not used in her aged care assessment. Late last year after the two year anniversary of mum entering aged care, Services Australia (Centrelink) requested a real estate valuation (MOD R form) for her home that my brother (the protected person) was still living in. As the property was valued over the aged care pension threshold for a single non-home owner pension was cancelled. She has been funding her monthly aged care fees out of her savings. After numerous discussions with Services Australia Financial Information Services it was decided to sell the home at auction and this happened in December 2021. With settlement of the on I’m just wondering who now needs to know as mum is no longer a centrelink recipient. While mum originally went into aged care as a low means supported resident ideally it would be best if mum now paid the $550,000 RAD at her aged care home as this would bring her assets back down and she could claim a full aged pension again.
Hi Jill. This is amazing feedback and really appreciate you providing me with the appropriate direction. The Aged Care sector is overwhelming but great to get your input which I am now able to follow. Thanks again for helping out.
Hi Rviola A person is considered “protected” if you are a spouse or dependent child or a close relative who is eligible to receive an Australian Government income support payment and have been living in the family home for the past 5 years. You will also be considered a Protected Person if you are a carer who is eligible to receive an Australian Government income support payment and have been living in your family home for the past 2 years. It is my belief that receiving this Government Income Support Payment is key. You must continue to be in receipt of a Centrelink or DVA income support payment to qualify as a Protected Person. If there is a protected person living in the family home then the value of the home will be exempt from aged care fee calculations for the period of time that person remains living in the home. When a person enters residential aged care and the family home is retained then it does not become assessable for aged care Income and Assets assessment for two years. After the two years the family home will be included in the calculation but will be capped at $175,239.20 (as of 20 September 2021)If the family home is sold then the market value of the home will be included in the assets calculation. Without knowing your mother’s financial situation it is hard to know how much she will be required to contribute towards her aged care fees. She will have to submit an Income and Assets assessment to Department Human Services DHS (Centrelink) and they will determine these costs and how much the government will subsidise her fees. You could also call DHS Income and Assets division on 1800 227 475 to discuss your mother’s situation. If you can’t afford aged care costs due to circumstances beyond your control there is financial hardship services available. You can contact them on 132300.We always strongly recommend that people seek specialist aged care financial advice as it can often save a lot of money, time and emotional stress.
Regards Jill
Hello. I’m hoping you can help. I have been mums carer for close to 2 years. My mother has dementia She took a fall at her home which landed her in Hospital for 7 days. It was at this point that I had decided to take mum into my full time care and has been living in my house. My father passed away in December 2017 and my brother who separated from his wife moved back into mums home from around June 17 and is still living there. So in a nutshell, mum has been living with me since June 20. Mums health is deteriorating so we are now making the choice of putting her in an aged care home. Reading through a number of aged care facilities and the costs involved I am a little confused on how a person is to provide an upfront bond ranging from $400k-$500k. My brother lives in mums house rent free and is not working as he has a number of medical conditions. To pay for mums aged care home fees what is our option. We are unable to make an income from mums property (rent) as my brother cannot afford this. What best options and can you possibly provide us with some sort of direction and last question is my brother known as a protected person. Would love to hear from you. Thanking you in advance.
Hi jack95 My understanding is that if you have been living in the family home for two years with your mother and been receiving an income support payment from the government during that time you will be classified as a protected person. You will also be considered a protected person if you are a close relative living in the family home for 5 years and have been receiving an income support payment. I am not sure if having a rental property will impact on that. I suggest you call the income and Assets division of Centrelink on 1800 227 475 to clarify that.
Regards, Jill