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What happens to the home when your elderly parent requires additional care:  The Asset Test

When an elderly parent goes into aged care and there has been a carer (being a child of the elderly parent) who does not receive a carer’s pension, the home of the elderly parent may be treated differently depending on whether the carer has been living in the home and if so, for how long.

If the carer has been living in the home for at least two years prior to the parent moving into aged care, the home may be exempt from the assets test for up to two years after the parent moves into care. This means that the home would not be included in the assessment of the parent’s assets for the purposes of determining the aged care fees.

However, if the carer has been living in the home for less than two years prior to the parent moving into aged care, the home may be included in the assessment of the parent’s assets. This means that the value of the home would be taken into account when calculating the parent’s aged care fees and may need to be sold to help cover the costs of care.

It’s important to note that the rules around aged care fees and assets can be complex and may vary depending on the financial circumstances of the parent and the type of aged care facility involved. We suggest you seek advice from an aged care financial advisor for your individual circumstances.

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