Paying the accommodation bond

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Paying the accommodation bond

Hi,
I am just wondering if your parents is in a nursing home, but their home is up for sale, but not for sold yet (and they do not have any other property or assets other than income of about $29 000 per annum combined, which includes a part pension and fortightly superannuation payments) - Will centrelink and/or the nursing home demand that their home be classed as an asset and demand they pay the acommodation bond (either as a lump sum or weekly) before it is sold and they do not have any money left over to pay this yet until it is sold? Just to add to the complication, both my parents are  in the nursing home together.  They are put on as respite until their 63 days run out and they are put on as permament .  We have not yet had our most recent centrelink assets and income forms returned. We have tried to get help from the nursing home and they cannot advise until that comes back and are so flat out with trying to get them set up in the nursing home and trying to organise their house sale that we have not time (or money) left to see a financial councellor.
 
Please help.
 

Jill_Donaldson

Hi fed up,

It is obviously a difficult time for you understandably. It may feel that you do not have time or the money to speak with a financial adviser who specialises in aged care but it would probably be worth while because depending on the value of your parents home it may be worth them keeping the home rather than selling it.  The reason being that for the purpose of the Income and Assets test the value of the family home is capped at $162, 815.20.

When you do receive your Income and Assets assessment back ask the aged care home to sit down with you and explain all your options. From my experience there is room for negotiation particularly as you have two parents at the home.

Regards

Jill

fed up

Thanks Jill.

I will see if we can somehow arrange to see a financial councellor. They would only get about $290 000 by the time they sold the house and paid their loan. Is the capped amount of $162 815 done as a combined amount or singularly, like that figure would then be doubled being for the two of them?

Thanks, fed up

Jill_Donaldson

Hi fed up,

Robert Craven from Affinity Aged Care Financial Services has come back to me with this information for you:

The capped value of the home increased to $165,271.20 yesterday (20 March 2018).  For the aged care assets & income test it is done singularly.  The capped value is effectively doubled as it is assessed for each of them (providing the home is valued at $330,542.40 or more, otherwise 50% of its market value).  This also assumes that they move to permanent residential care on the same day.  If one goes in first, while the other remains at home, it won’t be assessed for the 1st entrant because a protected person is still living there.  Under this scenario, when the 2nd one moves to care, the house will be assessed as an asset (at the capped rate) for each of them because a protected person is no longer living there.

 

For the age pension test, it is excluded from the asset test for 2 years for them both and they will immediately be assessed as an illness separated couple (each entitled to the single rate of pension rather than the couple rate, even if only one moves in).  After two years is assessed at the market value, half each, and they will be assessed as non-homeowners.

I hope that helps

Regards

Jill

 

JeniferWilliams

Thank god I found this forum. So much interesting and informative topics are here. Getting so much knowledge. Smile

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