Hi Demon51,If your mother’s partner is eligible for “protected person” then the value of the family home will not be included in your mothers assets assessment for the purpose of her aged care fees during the period he lives there. Whether your step mother’s partner pays rent etc will be up to your mother to decide.If he leaves the house and there is no protected person living there then the value of the home will be included in your mothers assets assessment. If the family home is sold then the full value will be assessed. If she keeps it then it will have a capped value of $171,535.20 (as at 20 March 2020).Regards
The Aged Care person is still living but a family member questions if the Protected person should be paying rent, or indeed should only stay in house for certain time rent free.
Hi Demon51,Protected status only applies whilst the home owner is living in residential aged care. Once a resident passess away the house will become part of their estate and dealt with according to the person’s will.RegardsJill
My mother is in an aged care home, her partner/carer for 6 years is a protected person living in her home.He doesn’t pay rent, but visits her regularly, and cares for her very much. Rest of the family are asking how long is he eligable to stay in the house. If she passes away, ddoes he have a right to stay in the house. He owns another house that he rents out.
Hi Dalsanto,To qualify as a protected person for aged care purposes as a close relative you would need to have lived in the home for 5 years and during that time have been eligible for an income support payment.To ask about the impact of travel and protected person status I would recommend you call Department Human Services Income and Assets Department to clarify on 1800 227 475. I would imagine it is most likely that you may need to inform them when your circumstances change ie taking a short break. In this situation I would be surprised if it had an impact on your protected person status but I cant say that with absolute certainty
Hello,
I have been living in my father’s house for the past 5+ years. He was recently diagnosed with dementia. My mother is worried he will need to go into aged care. My understanding is, if I am receiving jobseeker payments from centrelink, then I will be a protected person and his house will not be assessed by aged care. However, if I want to travel overseas for a holiday, my jobseeker payments will be suspended until I return home. Will this affect my protected person status.
Hi SmithcapsI’m hearing you. More than two years wrangling with Human Services over one thing and another. Shed more tears over Human Services garbage, than I did over my husbands illness it seems at times. I likened Aged Care system andHuman Services, to stumbling around in the dark until you trip over something. That something may or may not be useful, but you will never know unless you encounter it accidentally. Different stories from every different person you speak to. It is so frustrating. And just when you think you have a glimmer of hope, you get knocked down quick smart with some small detail or other! Breathe is all you can do ( and there’s probaly a regulation about that too!) Keep you
It’s okay, spoke to centerlink and it looks like status only gets removed if you are ineligible for payments (you don’t have to claim payments you just have to be entitled to them).
Can I ask does protective persons only stay in effect if you are claiming a Centrelink benefit and staying in the house? So protective person is not really indefinitely, unless you are on Centrelink benefits. What happens if you are entitled to Centrelink benefits (low income) but not claiming entitlements?
I just wanted to update you all. I was the one that originally wrote this post. I am still a protected person. It’s been a little less than 2 years. I don’t get Centrelink payments, but I am entitled to Centrelink payments, due to my low wage and working small hours. I just don’t claim it as it’s too difficult with my circumstances. When I applied for protective persons I had to submit a whole lot of paperwork including “Aged Care Means Test Assessment Carer - Close Relation Questionnaire” document and “Permanent Residential Aged Care -Request for a Combined -Assets and Income Assess” document. I technically could have fallen under either “family living at the residence for over 5 years” as well as a “carer”. I think initially I fell under the “protected persons - family living in the house for over 5 years”. Then my grandmother moved homes about 6 months ago (due to her old one closing down) I didn’t hear diddly squat from Centrelink for over a years and then I got a letter saying I have to update forms and resubmit. They made me put through those 2 documents (above) again (2 years later) and the person I spoke to at Centrelink said I should have been putting in those forms every 2-3 months. That they usually send these forms out every few months to reassess. Hmmm never had any forms sent to me in the last almost 2 years! I then asked about my status and it now seems I have been switched"carer" status rather than “family member living over 5 years in house”??? Yup that’s right, it’s a joke. I don’t trust Centerlink as a whole. So basically because my grandmother moved homes they just reassessed the whole thing. Now the thing I have learnt is Centrelink staff and outcomes can vary due to who gets your application and what they actually know is the actual rules. What are the actual “real rules”? Who knows, as no one at Centrelink will tell you and notice there is no clear documentation online. That’s done on purpose I believe. However, in some ways it’s good…because it’s not clear you can technically get a lawyer to say that it isn’t clear. “Protected Person” is really wishy-washy. I mean I dug into the legal aspect, spoke to a lawyer who looked at the act, and was like “yeah it’s not clear”. So basically I think it’s a grey area and they are hoping most people don’t ask or know about it. You also get told different things by Centrelink staff again and again. I mean I was told by a number of Centrelink reps at in the beginning, of “protected status” you can work as much as you want. Then another staff member said that’s not the case and also depends on what status in protection you have been given. If it is If it was because you were a carer you have different protection status to if you were a family member living in the house for over 5 years. I was then told I could earn up to a pension amount in income, or something like that before I lose the status. To be honest, I just have no clue what the rules are because none of the Centrelink staff knows themselves or they are told to keep it “open and wishy-washy”! So it’s a bit like “roll the dice and hope for the best”. I am not even sure" Affinity Aged Care Financial Services" would know the “ins and outs” to be honest, because they would get the run around too from Centrelink and what their rules are. I would like to hear their thoughts and how they could make a difference. How do they know the actual rules, when there is no documentation anywhere online that really spells out clearly “what protected persons entails”.
Hi Robert, Thanks for your question. If I have understood correctly you have outlined 2 different points to consider.1.) Your brother being a Protected Person2.) The cost of aged care. Let’s start with the first. Is your brother a Protected "Protected persons include: your partner; a dependent child; an eligible carer who has been living with you in that home for the previous 2 years; oran eligible close relative who has been living with you in that home for the previous 5 years. From the above options, the closest option your brother might fall under would be a ‘dependent child’. When searching what is a ‘dependent child’ we find: "A child aged 16 or over CANNOT be considered a dependent child if: …they receive a social security pension "We understand there may be caveats to your brother’s situation so calling the Department of Human Services on 1800 227 475 will be able to confirm if your brother is a Protected Person or not. Moving onto the cost of aged care. Residential Aged Care is quite costly especially for people whose income and other assets put them in the top bracket. There are 3 to 4 main costs to residential aged care that need to be paid. You can read more about them starting here: What are the basic aged care fees? | agedcare101 Top level, these costs are: A basic daily fee A means-tested care fee An accommodation cost Plus: Additional fees if you choose to have non-essential extras that are not included in the basic fees and costs In terms of covering the costs of running her family home as well as the accommodation costs of residential aged care, we advise speaking to a Financial Advisor who specialises in Aged Care. They know every nuance hearing your mum’s specific financial situation will be best positioned to advise how to navigate the costs. We hope this has helped, the agedcare101 team
My mother has just entered a transitions care program and will almost certainly be moving from there into residential aged care. Prior to a medical crisis she was living in the family home with my 54 year old brother, who has never left home. He has not been her carer by any definition, nor ever received carer payment or carer allowance, but is studying and receiving Centrelink Austudy. My understanding is that qualifies him as a protected person, for the purpose of calculation of the cost of care, exempting the family home so long as he lives there, and that it gives him right of occupancy. Even exempting the value of the family home her income and other assets put her in the top bracket. The question is, by what legal means could he assert a right of occupancy, and does he have any right of maintenance payments from my mother for such outgoings as rates, insurance, utilities, repairs, etc. The total outgoings for the property substantially exceed Centrelink payments and it strikes me that it would be grossly unfair to expect my mother to pay for her own aged care accommodation and care costs as well as to maintain a property she can no longer live in.
Hi Pino,
You dont mention where you are located. We refer to Robert Craven at Affinity Aged Care Financial Services who is excellent. Robert is based in the Sydney Office and Affinity also have a Brisbane office. I would suggest you call him on 8078 0888 to discuss costs etc. He may do a skype conference if those offices are not convenient. He may also have affiliations with advisers in other states as well. Regards
Thank you for the info .So My understanding is that whilst my brother is a protected person he can remainin in the property, but after a certain time ( 2 years ) the property will be used in the income and asset assessment for my mothers Age pension .If her Income and assets are above $263,250, ( asset and income Cutoff point for Age pension Eligibility ) she will lose her age pension .Is capped amount you have mentioned - $ 168,351.20. for her house used in the calculation of assets and income .If so she will not lose her pension .Or are the Income and assets assessments for Age care and Age Pension seperate .The problem we have is that the age care is being funded by her pension - 85%. This allows my brother to keep a roof over his head and for us to be able to afford the age care needed for mum .Can you Reccommend an aged care Financial advisor , and what are the costs
Hi Pino,
Thanks for your questions. Based on the information you have supplied, to answer you question, if your brother is a Protected Person, then he can remain in your mum’s house so long as your mum is still in the residential aged care. While your brother is living in your mum’s home, then the home will continue to be exempted from your mum’s Income and Asset Assessment. To answer your second question we would have to briefly pretend your brother is not in her house. If the house becomes vacant, then it is seen as an asset with a value that will be included in the Income and Asset Assessment. The value of the house will only be included up to a capped value of $168,351.20. It is too hard to say if including an additional $168,351.20 to your mum’s Income and Asset Assessment will change her eligibility to the Age Pension. It is possible, but not always the case. While it is a cost, we really do encourage you to speak to a Financial Advisor who specialises in Aged Care. They can help you get the right advice based on all the nitty-gritty of your mum’s (and brother’s) financial situation. Also if you want to reach the Australian Government department that advises on the Asset and Income Assessment, you can reach them on 1800 227 475.We hope this helps the agedcare101 team
Hi I have just read through the previous posts .Thank you to all for the Great info. Just want to clarify :My brother who has been living with my mother for the past 45 years ,He has been her carer for 10 years and on Centrelink payments is now considered a Protected Person ( as noted in the Assets Summary Statement from Dept. of Human Services. ). Unfortunately my brother has become too ill to care properly for mum , therefore we have to place mum in a nearby nursing home . My brother has applied for Permanent disability Pension as he has a disabling illness . He has gone through the first stages with Centrelink whilst still remaining on Centrelink benefits , and we are still waiting a decision .My Questions are:1. Is the home exempt Indefinitely whilst my brother remains a protected person , or does it stop after 2 years. 2. If so does that mean my mother loses her pension , which is paying for her Nursing home care, and does my brother have to find alternative accommodation?
Hi Steve2226,Thanks for your question. These are big decisions and the best thing to do is to speak to a Financial Advisor who specalises in Aged Care. They can offer you bespoke advice that could really have a significant financial impact, so it is worth doing. Based on the information you have given, if you sell the house to pay a RAD, then the full value of the house will be included in the aged care Income and Assets Assessment. Also it is our believe that once you pay the money for the RAD the amount of the RAD is also included in the Income and Asset Assessment. If you hang onto the house, it will be included in the Income and Assets Assessment, but only to a caped rate of $168,351.20. If you get a renter in the house then any rent will also be assessed but if the house has a value a lot higher than the capped rate, it might be worth hanging onto the house. As we said before, these are big decisions and need to be spoken about with professions who know the situation and financial affairs. We hope this helps.
the agedcare101 team
Hi Mike63,Thanks for your question. Based on the details in the above, we believe the government will see your mum’s home as her asset (given your name is not on the title). Given you have been living with her and caring for her for the last 6 years (with the carer’s pension to support that) you will be considered a Protected Person. That means you can continue to live in the home and the home will not be included in your mum’s aged care assessment.The Australian Government writes the following around being a Protected Person. It is written from the point of view "Your former home is not counted as an asset for aged care assessment purposes if, at the time of your entry into permanent residential care, your home is occupied by a protected person. Protected persons include:your partner;a dependent child;an eligible carer who has been living with you in that home for the previous 2 years; oran eligible close relative who has been living with you in that home for the previous 5 years.If the protected person vacates your home, then the asset value of your home may no longer be exempt from your aged care means test.If the former home is not occupied by a protected person, the value of the principal home will be included in your asset assessment for aged care purposes. If you entered care after 1 July 2014, the home value will be capped. However, if you entered care prior to 1 July 2014, the value of your home will not be capped, and the full value of your home will be an asses"Considering you fall into the above, you won’t need to vacate the home.We hope this helps.the agedcare101 team
Hi there, hoping you can help me. I have been caring for my mother for the last 10 years. She has Alzheimer’s. she is 89 years old. She is now in transitional care after breaking her hip and is unable to return home. The home she lives in now is half mine and half hers. we purchased the home 19 years ago After selling our previous home. I was overseas at the time of purchase and my brother for reasons of his own advised her not to put my name on the title. My mother has left in her will half the property to me and the other half to to be left equally amongst myself and my 4 other siblings. I have been in receipt of a carers allowance for the last 6 years. In order to look after my mother for the last seven years properly I employed a manager to run my florist shop and this left me unable to draw an income from my business for the last 6 years. This is reflected in my tax returns. My mother has no other assets except her half share in our home. I have a rental property which returns $700pw. My business has been running at a loss for last 7 years and now is on the market. Upon being sold I stand to carry a debt of about 20k. My question is am I entitled to be a protected person? I am 56 years old and not in great health. I am terrified I will be thrown out of a home I half paid for which in reality is my superannuation. My super is only 30k. If I’m not made a protected person I stand to lose around 450k being my half share in our home.
HiI cared for my mother for nine years, however she had a fall two years ago and broke her hip and was admitted to hospital, she didn’t recover and was was admitted to an aged cared facility. I’ve been living in the family home forr the last two years as a protected person. I have been just advised by Centrelink that the house is now going to be assessed as an asset. My question is what is the best option. Sell the house and pay a RAD or get a border in and rent part of the house to cover my Mums accomodation costs. What is the most pallatable option if there is any?