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  • Writer's pictureBill Savellis

My Parent Needs to Move into Aged Care, What About Our Home?

As our loved ones age, providing them with the right care becomes a priority. It's not uncommon for a primary carer to live with a loved one as they need more help. This can make understanding your funding options daunting, especially when you need to navigate the implications of selling the family home for both your loved one and yourself. This blog post will explore different options available to address this concern and help you make an informed decision.


Firstly, if you have been a primary carer and are living with your parent or loved one to care for them, you may be classified as a 'protected person'. Being a 'protected person' in the context of Aged Care Assessments refers to an individual who is living in the family home of the person moving into aged care. 


This could be a spouse, carer, or close relative. If you remain living in the home after your loved one moves into care, the home is often exempt, or not included, in the asset test. This means the cost of aged care for your loved one could potentially be less, alleviating financial stress. However, it is crucial to seek professional advice, as these situations differ based on individual circumstances.


To be classified as a 'protected person' you do need to meet the criteria. If your loved one needs extra support, it can alleviate a lot of stress to understand the criteria and if you are going to be eligible for protected person status when the time comes for your parent or loved one to transition to Aged Care. If you are not eligible as a ‘protected person’ a financial hardship application may be another avenue to consider.


Why Is Financial Advice Important? 

Financial advice for those transitioning to Aged Care encompasses a wide range of services designed to help individuals and families navigate the complexities of funding aged care. It involves a comprehensive understanding of the costs associated with different care options, exploring available subsidies and benefits, and strategising using assets and income to cover these expenses. We can help you understand if you were eligible to apply to be classified as a protected person, and can help you to understand entitlements if you sell the family home and if you don't.


This advice can provide significant financial savings, reduce stress, and ensure that loved ones receive the appropriate care they require without compromising their financial stability. Professional financial advisers are well-versed in aged care and can provide tailored recommendations based on individual circumstances, helping you make well-informed decisions about your loved one's care.


I'm here to help you understand how these financial decisions can impact your entitlements. If you're deciding to keep your former home, we can discuss strategies to pay the agreed accommodation payment and explain how any rent from the home will impact your entitlements.


On the other hand, if you choose to sell your home, we can help you identify options to invest the proceeds. Our goal is to strike a balance between generating income, maximising Age Pension entitlements, and reducing ongoing care costs.


Remember, it's crucial to make informed decisions about your finances. If aged care facilities aren't suitable for your parents' needs right now, home care assistance can support them to stay at home for longer. 


Other Solutions

If you require some assistance but are not ready for Aged Care, moving to a retirement village is a popular option for aging in place. The availability of independent living units, assisted living apartments, and aged care facilities within retirement villages caters to different needs and preferences. Retirement villages let you or your parents retain their independence for longer, and the community aspect ensures they won't get lonely.


Downsizing to a smaller home or apartment allows you to reduce the burden of maintaining a large property and frees up money that can be used to pay for extra support as you age. 


With so many options available, it's essential to find the solution that suits your or your parents' needs and financial situation. Always remember to do thorough research into your options before making any decisions and discuss any concerns with a trusted financial adviser or aged care specialist. 


If you would like to discuss your circumstances, please reach out to bill@olivegrovefinancial.com.au.


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