An upsetting query

Q Judi: My mother is 81 years of age and moved into an assisted care unit a couple of years ago. Last year, I sought to move her to Sydney to be closer to my family. I was extremely lucky to find her a placement.

When she first went into assisted care, I sold her unit. The bond, which was asset based, was approx $190,000. They took 85% (I think) of her pension which left her with a few dollars each fortnight. After the bond was paid (plus the interest from when she had moved in until when we received the money from the sale), she was left with about $20,000. This is less than the $29,999 that I was told the Government insisted they be left with when working out the assets – this was because the ‘interest’ was not included in the asset statement. I never got my head around this.

Her second placement was happy to accept a transfer of her bond – which was at this stage $168,810. All wonderful, until I found out that they actually took more than her pension – only a few dollars; however, I thought that wasn’t right. They informed me that if you pay a bond over $125,000, you are therefore not classified as a ‘pensioner’.

I cannot fathom this. Because my mum managed to look after herself and secure a small property, she is being penalised. She worked nearly all of her life, so paid her taxes. The rent has now been increased and she is now down nearly $40 a month. Then there are her incidentals to pay for – chemist, phone etc. I just don’t think it is right that she has to dip into her savings. I can finance her bits and pieces; however, it is the principle here that is annoying and upsetting me.

A Although you haven’t managed to give us all the details, I’ve worked on this premise: your Mum paid a $190,000 deposit – now that sum is totally separate from any other daily fees or allowances. Let’s assume that your Mum was there for 24 months – using even the most up to date retention figure of $273.50 per month she should have been left with a transferable bond of about $183,000 – how did it get to $168,000 odd? I talked with the Aged and Community Care Help Line folk and they too feel this is an odd calculation.
I checked with them on the interest payable and it calculates to about $5,000. This can occur when the facility has essentially loaned you the asset (being access to the village), as you haven’t paid the bond. So they charge you for the ‘loan’ – and the retention, for that period of time. Again, the figures don’t quite match up – but I think we’re in the ballpark.
Two things come to mind – it’s not too late to go back to the first home and ask them to explain the bond payout. If this proves hard, or of you feel you are not getting the answers, don’t hesitate to call the Aged Care Complaints Resolution line on 1800 550 552. They can mediate if necessary or point you in the right direction for assistance. As to what might happen to any funds that may be due your Mum – that’s another ant’s nest altogether!
I’m not full of good news for the last query though – the amount your Mum is paying at the new home is pretty standard. I know it seems tough, but if the figures are right, they are playing it by the book. I can’t stress strongly enough to anyone considering moving into a facility to go over every document with a fine tooth comb – and a finer toothed lawyer. The devil, as they say, is in the detail.