Blog # 15 FACT #14 Is the family home at risk if one of the resident owners enters an Aged Care facility?
There are a number of circumstances where the “Family Home may be at risk” Here are some examples:
1. If no aged care planning had been done 5 years prior to aged care entry and a person was assessed by ACAT to enter an aged care facility . Once Centrelink completes their assessment – the fees determined may require a person to sell their home as they may not have the actual funds to pay the facility if that option was chosen. As of September 2021 – an individual who had $175,239.20.20 or more in assets may be asked to pay up to $550,000 or more for a room in aged care. In this circumstance if that person does not have the funds to pay, they may have no alternative than to sell their home to meet fee demands.
2. A single person who receives a full pension and is a homeowner, enters aged care and desires to keep the home for the children for when they pass on- decide to lease out the home. Daily fees for aged care are currently being deducted from the pension. After two years in the aged care facility – this resident receives a letter from Centrelink advising they are no longer classified as a homeowner. This means that the asset value of the home may be counted for pension purposes, where previously it was exempt from pension calculations. The Pension could be now cancelled- depending on the home value. So how does the resident now pay aged care fees? They may have to sell the property to meet aged care obligations.
3. If your partner or dependent child ( the protected person) decided to move out of the home. The home may now be assessed differently to when they did live there.
4. A close relative who is eligible for an income support payment from the government and had been living there for at least five years moves out. The home may now be assessed differently as to when they lived there.
5. A carer who is eligible for an income support payment from the government and has been living there for at least two years decides to move out. The home may be assessed differently as to when they lived there.