Hi Eviemarie02Protected person status only applies whilst the home owner/s are living in residential aged care. Once they have both passed the estate will be handled by your parents lawyer according to their wills - divided equally between all 7 siblings as you have mentioned.If your parents wish to stay in the family home with your brother but are now requiring some outside assistance the Federal Governments Home Care package program is available to those who are eligible and ranges from level 1 through to level 4 depending on care needs. However there is a waiting list for level 3 and 4 packages at the moment.If the consensus is that living with you is the best option for your parents then what they decide to do about their family home is a very important decision( ie sell or rent it out ) which can have consequences for their aged care fees and the age pension if/when they eventually require residential care .For this reason we always advise people to seek specialist aged care financial advice to ensure that the right decisions are made to avoid financial issues later on.Kind regardsJill
Hi, my parents are 94 & 91 and my youngest brother has been looking after them in their own home for the past 6 years. He has now indicated that he would like to finish up. We thought that he would move back to his own home and allow us to take over care but it seems that this is not the case. I am a Registered Nurse with many years of Aged Care & Acute care experience and it has always been agreed that I would take over their care if my brother could no longer do it.I have the means and the resources and the support I need. We all agreed that a Nursing home would never be an option and that they would always be cared for by family.My brother has been in receipt of the Carer’s Pension all this time of caring. He is paying off his own home & has tenants in it. He has a fiancee who has been living with my brother in the family home for the last 2 years. She works full time and pays for no upkeep in my parents’ home. She repeatedly states that she is also their Carer. My parents totally financially support them in every way.Recently we have been making arrangements for the swap over of care to me in my home. My brother has changed his tune & says he thinks I cannot care for my parents & that they need to go into care. He has mentioned protected person status. I understand that they must go into care not to me, thus I sense underhanded motives when loving family care is available as an alternative.As a family, we offered for him to stay in the home at minimal rent, when they came to me. He said he would lose all his benefits & need to find a job. He is young, fit & healthy, is well qualified in a trade and at tertiary level to find gainful employment. It would seem that he does not want to do this & would rather place mum & dad in care to save his benefits & PP status.The 7 siblings are divided & whilst the 2 older siblings have Enduring Guardianshop, dad is compos mentis & most able to discern his wishes for himself & mum & vehemently opposes an aged care facility.“indefinitely”. What happens when mum & dad pass? How long may he stay in the family home after that if he gains PP status & how does this affect the Will which is left equally to all 7 children? Thank you for your consideration.
Hi Sharrington,I also have the understanding that the Family Tax benefit is not considered an income support payment.The Carer payment and Disability Support payment and Age pension are all income support payments. The Parenting payment is also listed but to clarify how this relates to the Family Support payment you could call the Department Human Services Income and Assets division on 1800 227 475.Reg
My understanding is that family tax benefit is not an income support payment. A list of Income Support Payments can be found https://www.servicesaustralia.gov.au/individuals/topics/income-support-payment-description/34696
Hi,I am new to this thread and have a question about Protected Person. We have resided with my husbands mother for the last 20 years. She entered an aged care home in October 2019. We have been told that the house is not protected as neither of us are receiving a pension from Centrelink. Does the Family Tax Benefit count as a payment from Centrelink? We are receivng that as parents to 2 chil
Hi carpbuilder, To be classified as a protected person for aged care purposes one of the criteria is that the close relative has been living in the family home for at least 5 years and is eligible for an Australian income support payment at the time the family member enters residential care .The protected person status is relevant for assessing residential aged care fees ie it means that the family home is not included in the Income and Assets assessment by the Department of Human Services (DHS) if a protected person is living in the family home when the older person goes into residential care. To clarify this I suggest you call DHS Income and Assets on 1800 227 475. Regards Jill
Hi can anyone tell me if a person is eligable to be a protected person while a person is in respite. My friend was working too many hours to be clasified as a protected person and was declined from recieving income support. During respite hos hours were cut back and he has reapllied with a letter from his boss showing reduced hours and met the criteria. Now that they have just gone permanaent care will he be clasified as a protected person. He has lived in the home his whole life.
Hi Elisa60,My understanding is that whilst you continue to be a protected person in the family home for the purpose of your fathers aged care fees the two year rule for the age pension will apply. This means that your father’s home will be included in the pension assets test. The only time this does not occur is if a spouse is still living in the family home.If you are on the title of the house you may also be exempt from the two year rule and if this is the case I would suggest you call Centrelink on 1800 227 475 to clarify this.Once your father’s home is included for the assets test there is the possibility that it may impact on the pension he receives. Centrelink will be able to assist you with this on 1800 227 475.RegardsJill
I have been a protected person for almost 2 years now and have just received a letter informing me that my father’s home will soon be included in the Age Pension assets test. My father’s pension currently pays for the basic daily fee with the accommodation costs covered by the government. As a protected person on Centrelink, what happens to my protected status once the 2 years is up in July? If it continues and my father loses his pension, will the aged care fees Dad is currently paying remain the same?
Hi SonjaBest if your mum sees her solicitor as well. I can’t understand why she wouldn’t be a protected person if she’s lived in her home for 40 years, especially if the home is jointly owned. Pretty sure if a joint property is to be sold, both parties would have to sign to sign the paperwork, unless someone with power of Attorney can sign on your dad’s behalf.For some reason these facilities like to make everything unnecessarily difficult for pe
Hi Sonja,I have no knowledge of the rules around “separated under one roof” and the aged care Income and Assets assessment. I suggest you call the Department Human Services Income and Assets division on 1800 227 475.RegardsJillRegardsJill
Hi Noel,My understanding of the regulations are as follows but I must stress that I am not qualified to give financial advice and I strongly suggest you get specialist advice or call Department Human Services to clarify the following:Yes the family home will be exempt whilst there is a “protected person” living there.If you sell the family home its value will count towards the Age Pension assets test and the Income test for aged care fees.If you keep the family home without renting it out it is exempt from the Age Pension assets test for two years from the date you move into residential aged care and is capped at the current value of $171,535.20 (as at 20 March 2020) for the purposes of the Income and Assets assessment.Depending on their financial circumstances some people may choose to rent out the house to pay a daily accommodation fee (rather than a RAD). My understanding is that the net rental income is assessable for the Income test but exempt for the Pension assets test for two years.The RAD is assessable for aged care fee purposes but remains an exempt asset for the Age pension.After paying the RAD you must be left with a minimum level of assets which I think is currently $50,500.But clarify this with DHS or an aged care adviser.R
My father recently received the Aged Care Residential Income and Assets assesment in which it has been determined to now pay accomodation/service fees for the dementia clinic he resides in.The asset is based on the family home where my mum still lives and has done for 40 years. They have been Seperated Under One Roof for some time so I understand are treated as seperate entities although they jointly own the Title.We cant seem to find anything that protects mum from having to sell the home where she lives to have to pay for the dementia clinic.
Thanks Jill, for your clear advice - we are currently completing the SA485 form. And Yes, we will follow up with both a FIS officer & a private source to make the best possible decision for dad.
Hi rssmacca,I assume that before you agreed to pay the RAD you discussed other options such as DAP or part RAD and part DAP with the aged care home?Remember that if you pay a RAD it is included as an asset for the calculation of aged care fees but not for pension purposes.To sell the family home to pay aged care fees is a big decision and is not always the only or best solution depending on an individual’s financial circumstances.This is why we always strongly recommend that people seek advice from a specialist aged care financial adviser. We are not qualified to give such advice but can assist with some of your queries.If your brother i"protected person" according to the aged care regulations then the family home will not be included in the Assets and Income assessment whilst your father is living in residential care.To b"protected person" your brother must be either dependent or must have lived in the family home for 5 continuous years immediately before your father moves into care and is receiving a government income support payment or he has been your father’s carer living in the home for two years immediately before your father moved into care and is receiving an income support payment. Examples of Income support payments include age pension, disability support pension, Carers payment.If you sell the family home then the full amount of the sale price will be assessed and can impact on both the means tested aged care fee and the age pension.If you retain the family home and there is no protected person living in it then the value of the home will be capped at $171,535.20 (as of 20 March 2020) for the purpose of the Income and Assets assessment.To clarify and register for Protected person status your brother will have to contact DHS on 1800 227 475.RegardsJill
Hi rssmacca,I assume that before you agreed to pay the RAD you discussed other options such as DAP or part RAD and part DAP with the aged care home?Remember that if you pay a RAD it is included as an asset for the calculation of aged care fees but not for pension purposes.To sell the family home to pay aged care fees is a big decision and is not always the only or best solution depending on an individual’s financial circumstances.This is why we always strongly recommend that people seek advice from a specialist aged care financial adviser. We are not qualified to give such advice but can assist with some of your queries.If your brother is a “protected person” according to the aged care regulations then the family home will not be included in the Assets and Income assessment whilst your father is living in residential care. To be a “protected person” your brother must be either dependent or must have lived in the family home for 5 continuous years immediately before your father moves into care and is receiving a government income support payment or he has been your father’s carer living in the home for two years immediately before your father moved into care and is receiving an income support payment. Examples of Income support payments include age pension, disability support pension, Carers payment. If you sell the family home then the full amount of the sale price will be assessed and can impact on both the means tested aged care fee and the age pension. If you retain the family home and there is no protected person living in it then the value of the home will be capped at $171,535.20 (as of 20 March 2020) for the purpose of the Income and Assets assessment. To clarify and register for Protected person status your brother will have to contact DHS on 1800 227 475.RegardsJill
If your Mother’s partner is genuinely a protected person under the aged care regulations and she wants him to be able to stay in the family home then I’m not sure you can change that. It would depend on what she states in her will I would think. You may have to get legal advice on this.Jill
Hi again, to clarify the details given in post #48 (05/11/2020); our father is on the full pension at the moment- the income under $1000/pa refers to all other forms of income.It appears that the only condition that allows dad’s home to be ‘exempt’ from the Assets test for both the Aged pension & Care ‘means’ fee is for it to not be sold and have a ‘Protected Person’ living there?? That means the RAD value for dad’s new ‘home’ won’t be exempt?? Why would the Gov’t penalise elderly folks with medical issues in that manner??? Or is my research to date, incorrect? Please help! Thanks, Noel.
The situation for our family is:1. Our father has just moved into Residential Aged Care, with a RAD cost of $550000.2. Currently my brother who lived cared for dad for over 2 years at dad’s home, still lives there & will need to apply for Protected Person status.3. In order to pay for the RAD (dad has only about $20000 of other assets & income of under $1000/pa) We will need to sell the home ASAP.Q’s * What forms need to be completed to assess my brother’s Protected status? * What is the impact on both Dad’s Aged Pension & Means tested fees once the home is sold? Thanks!
Ok, how can I find out my mother’s partner’s eligibility to stay in her house while she is alive, and whether it is fair to charge rent. POA’s differ in opinions of partner. He is very supportive of mum in her facilit