My father is currently in aged care as a fully supported resident. Mum in family home and such home is exempt from Assets test. Assets outside the family home are $90,000 combined.
If Dad stays where he is and Mum moves into another home, does Dad now have to pay the Daily Accommodation Contribution if their combined Assets (now including the value of the family home) are now $400,000. ie does Centrelink re-assess or does he remain on the same $52 per day fee only. I believe if their assets are over $170,000 each then he would be re-assessed and have to pay the max DAC of $58 per day on top of the min $52 per day he is currently paying.
Second part of the question. We are looking at moving Dad to a new nursing home. If he moves into home first while Mum is still in family home, he goes in as fully supported but then when Mum moves in he has to pay the $58 per day DAC? The other option we are looking at is finding Dad a cheaper home and telling them that we don’t want to go in as supported and just pay the DAP. Is this possible to refuse to be supported? Say we found a home with a RAD of $300,000 and opted for 100% DAP payment this would be $300,000 x 4.89% = $14,670 per year or $40.19 per day. This would work out cheaper ($40.19 vs $58) than going into a home as supported as then once Mum goes in we would have to pay a DAC of $58 per day. Is this logic correct and do-able? If you don’t have the choice to tell them that you don’t want to be supported, is another way around this to send Mum to the home first and then move Dad to a new nursing home afterwards?
Thank you Jill. We are due to speak to the Home this afternoon. If we receive no satisfaction we will do as you suggested and phone Human Services.
I agree that from your information supplied that the maths doesn’t appear to add up. It is the responsibility of the aged care home to explain the finances to you before any contracts are signed or revised. If you are still unsatisfied with their explanation I suggest you call the Department Human Services on 1800 227 475 - this is their Income and Assets division which can often assist with financial queries such as yours. Alternatively speak with a specialist aged care financial adviser to see if there is a better payment option available to your mother in law.
Can you help with my question posted on 18 June please?
The Mother-in law (MIL) entered an Aged Care Home in October 2015. At that time she owned a home and the RAD for the Aged Care Home was $350,000 with a MPIR of 6.14%. As the MIL could not afford the $350,000 RAD it was agreed that she pay the DAP and Basic Daily Care fee monthly. In October 2016 the MIL paid a RAD deposit of $80,000 leaving a balance of $225,000. It was agreed that the DAP be drawn down from the $80,000 deposit and the Basic Daily Care Fee be paid from the MILs aged pension. At the end of this month the $80,000 deposit will be reduced to Nil. The home has offered the option of paying a RAD of $125,000 with the DAP being drawn down from the deposit. The MPIR of 6.14% will be applied and compounded monthly to the balance of $225,000. The Daily Care Fee will continue to be paid from the MILs Aged pension. This means the family will have in theory paid $430,000 ($80,000 +$125,000 +$225,000) for the accommodation and not the agreed ve the balance RAD is $270,000 ($350,000 - $80,000 already paid) and want to pay the $270,00 as the RAD and have this amount fully refunded when the MIL leave care. Can you throw some light on whether the Homes or the familys
You appear to have a good understanding of aged care fees however they can be complicated depending on a persons financial situation (and everyone’s situation is different) which is why we always strongly recommend that people seek guidance from a specialist aged care financial adviser. From my personal experience whilst there is a cost involved they are very good at providing the best financial options for someone entering residential care, saving both time and money. On of the biggest factors involved with decisions around aged care fees is what to do about the family home - to sell or keep it. Whilst your mother remains in the family home she will be considered a " protected person" and the family home will not be assessed in your father’s Income and Assets assessment. Also remember that if you choose to pay a RAD it’s value will be included in the Income and Assets assessment. As part of a couple half the combined income and assets of both members of the couple are included in the Income and Assets assessment. If your mother also goes into residential care then what you decide to do with the family home can make a big impact on fees. ie if you sell it then the full value will be assessed and each member of the couple will be seen as equally owing half of the net market value of the home. If you keep it it will only be assessed to the capped value of $171,535.20 (as at 20 March 2020) or the net market value of the house if lower. Some people may choose to rent out the home and then use this towards accommodation costs but rental payments are also assessed and may potentially have implications for the age pension payment which is why it is advisable to speak to a financial ads.
I have since discovered in my research that if the home that Dad is in is not classified as ‘significantly re-furbished’ that the DAC would be $38 per day instead of $58 per day so this is better. Also please confirm this is correct.Also if he enters as supported resident before Mum moves into a home afterwards he would have to pay the DAC wouldn’t he? He wouldn’t be expected to pay the (RAD and or DAP)?A DAC of $38 per day equates to a lot less than we could find if he was converted to the RAD/DAP.