Barbara’s mother has been living in a nursing home for six months and is worried about the new assessment.
My mother is in a nursing home, and has been there for 18 months. She is 95. I live in her house; my daughter lives there as well with her children. I have power of attorney. Before moving into the nursing home, my mother had lived in the house for 16 years. It is her only asset. Can Centrelink take her pension when she has been in the nursing home for two years?
A. You are correct that after two years in care, Centrelink will count her former home as an asset and her pension may be reduced as a result.
After two years, you mother will be assessed as a non-homeowner and the full price of her former home will be assessed as an asset.
Based on the current asset test limits, if the home is worth more than $473,750 but under $782,500 she will still receive a part pension. If the home is worth more than $782,500 she will lose her pension.
If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.
Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.