mother and daughter own house as joint tenants

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mother and daughter own house as joint tenants

My mum and I bought a house about 15 years ago. we owe $120,000 and I have paid the mortgage on my own since we bought the house. This house is both our principal place of residence. Mum is at the point where I think she will need care in the not to distance future. Apart from the above there are no savings. I now need to go away to work for a year. Will i lose my home if she goes into care because I need to work away? I have read some of the posts but this is all so new to me. We live in NSW. Any coments or advice greatfully accepted. If I have joined the wrong forum with my question I apologise.

Jill_Donaldson

Hi Lillysilla,

The world of aged care is complex. And your situation is quite specific. We are not financial advisers but we find Affinity Aged Care Financial Services very good for helping with these matters or any financial adviser who specialises in aged care.

If you and your mother own the house 50/50  then your mothers assets include 50% of the value of the home for the purpose of the Income and Assets test. This test must be completed to assess  what your mothers aged care costs will be. 

The Government has capped the home value at $162, 815.20 for everyone for the purpose of this assessment. So your mother would be assessed as owning 50% of that amount if you own the home equally.

Also every one must have a reserve of a minimum of $47,500 once aged care costs are paid. If a person has less than this they can be considered a fully supported pensioner. If they have $162, 815 or less then they may qualify as a partially supported pensioner.  If this applies in your mother's case  then it will have quite an impact on what costs your mother will be required to pay.

Depending on the complexities of  individual's situation it is usually a good idea to seek professional help to ensure you pay the correct costs. 

Hope this helps a bit

Regards

Jill

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