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Asset test while caring for an elderly mother

Discussion in 'General Chat' started by IFocus, Jul 4, 2018.

  1. IFocus

    IFocus You are arguing with a Galah

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    A question.

    My brother receives a pension and cares for our mother, as its full time he lives in her house.

    He is pretty amazing as he deals with mum who suffers dementia.

    Will his pension be at risk because his own home will be assessed as an asset because he is not living there full time?

    If it is any way around this?

    Thanks for any replies.
     
    Last edited: Jul 4, 2018
  2. PZ99

    PZ99 ( ͡° ͜ʖ ͡°)

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    Hi. Is this a Carers Allowance? As far as I know there's no asset or income test to qualify.

    If it's the age pension his own home shouldn't be assessed if it's listed as his home address.
     
  3. sptrawler

    sptrawler

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    My personal belief would be, if it isn't rented out, then it is still his principal residence. If he rents it out, it could become an issue. Just my personal assumption.
     
  4. IFocus

    IFocus You are arguing with a Galah

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    He isn't getting the carers allowance or any other assistance just the pension.

    It came up because he applied for home care assistance (respite) and noted he was a full time carer living there for the past 12 months.

    He is thinking centre link will cease his pension and take back the last 12 months pension then fine him, getting further advice but suspect he is right.
     
  5. sptrawler

    sptrawler

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    Is his own home vacant or rented?
     
  6. PZ99

    PZ99 ( ͡° ͜ʖ ͡°)

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    From what little I know about this I'd say he's fairly safe.

    "We don’t count your home in the pension assets test for 2 years after you move out of it and into residential care."

    https://www.humanservices.gov.au/in...ntrelink-payments-when-you-go-aged-care/38196
     
    noirua and IFocus like this.
  7. sptrawler

    sptrawler

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    Whatever the outcome, it does pose an interesting situation.
    My take on it is, if his house was rented out, it will be classed as an asett.
    If it wasn't rented out, he is just sleeping over, at mums place.
    But sounds as though professional advice is required.
     
    Last edited: Jul 4, 2018
  8. IFocus

    IFocus You are arguing with a Galah

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    Just vacant, its the fact he is not living there at the moment that's the issue even though all his mail etc still goes there
     
  9. sptrawler

    sptrawler

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    You can only have one principal residence, but from memory you can be away for it for upto six years, before it loses that status. That is regarding capital gains.
    However I can't see the fact he is sleeping at his mothers house, to provide care, can be used to remove his principal home status.
    If he is deriving any income from it, or using it as a business, it will be classed as an assett.
    There is a 12 month vacancy rule I think, but one would think that would be easily disproved, if he hadn't been out of the Country for 12 months. He could just say he went home on some days. I wouldn't think not sleeping there every night would qualify as not living there.
    Well that is my understanding of it, but I have zilch qualifications.
     
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  10. noirua

    noirua

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    I have the greatest respect for people who look after a person with dementia or alzheimer's disease. Certainly in the case where two people are about the same age the carer nearly always dies first. Having met a person who looked after his wife as she deteriorating over 26 years I thought at first he was about 85 years old, he is only 61.

    https://www.humanservices.gov.au/individuals/enablers/assets/30621
    https://www.superguide.com.au/accessing-superannuation/age-pension-asset-test-thresholds
    https://www.professionalplanner.com...-the-family-home-on-entering-aged-care-43766/
    https://www.finder.com.au/australian-carer-payment-eligibility-requirements

    https://agedcare.health.gov.au/aged...care-and-home-care-frequently-asked-questions
     
    Last edited: Jul 8, 2018
  11. Toyota Lexcen

    Toyota Lexcen

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    hi,

    could you detail this further? what is home care assistance?
    thanks
     
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