Is the family home counted as an asset for aged care?

Category Q&A By Nursing Home Plus

Is the family home counted as an asset for aged care?

In navigating the complexities of aged care in Australia, one common concern for families is whether the family home is considered an asset. Aged care decisions often hinge on financial considerations, and understanding the status of the family home is crucial.

How the family home is assessed

In Australia, the family home is indeed counted as an asset when calculating aged care costs, but there are specific rules and exemptions that apply. The value of the home is included in the means test, which determines the amount you might need to contribute towards your aged care services. However, it's important to note that only a capped amount of the home's value is considered.

As of 2024, the capped value for the family home is $193,219.20. This means that even if your home is worth more, only up to this capped amount will be included in the assets test. This cap helps to balance the equity that homeowners have, ensuring that those with higher-value properties are not unfairly penalized.

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Exemptions to the rule

There are several exemptions where the family home might not be counted as an asset:

Protected person living in the home: If a spouse, dependent child, carer, or close relative who qualifies as a protected person continues to live in the home, the value of the house may be exempt from the assets test. The carer must have been living in the home for at least two years and must be eligible for an income support payment.
Temporary absence: If you move into an aged care facility temporarily, with the intention of returning to your home, the home is generally not counted as an asset. This is particularly relevant if you're receiving respite care or have plans to return home after a short stay.
Renting out the family home: Under certain circumstances, if the home is rented out, the income generated from the rent can affect the means-tested care fee. However, the home itself may still be exempt under the capped amount rule, depending on your specific situation.

Impact on aged care costs

The inclusion of the family home as an asset can influence several costs associated with aged care:

Means-tested care fee: This fee is determined by assessing both your income and assets, including the family home up to the capped value. The higher your assessable assets, the higher this fee could be.
Accommodation costs: Depending on your assets and income, you may be required to pay accommodation costs. For those with significant assets, including the home, this could mean higher upfront or ongoing accommodation payments.

Planning ahead: Strategies to consider

If you're concerned about the impact of your family home on aged care costs, there are several strategies you might consider:

Seek financial advice: Professional financial advisors who specialize in aged care can provide personalized strategies to help manage assets, including the family home. This might involve setting up specific financial arrangements or trusts that could minimize the home's impact on your means test.
Understand your options: It's crucial to be aware of the different types of care available, such as in-home care versus residential aged care, as this could influence whether the family home is counted as an asset.
Consider future living arrangements: If a family member continues to live in the home, or if you plan to rent it out, these decisions could alter how the home is assessed and the overall costs you might incur.

The family home is a significant asset for many Australians, and understanding how it is treated in the context of aged care is essential for effective financial planning. While the home is generally counted as an asset, several exemptions and rules can affect its impact on your aged care costs. By staying informed and seeking professional advice, you can better navigate these complexities and make informed decisions for your future care needs.

At Nursing Home Plus, we're dedicated to helping you find the perfect care home or facility tailored to your unique needs. Whether you're looking for a comfortable place for yourself or a loved one, our team is here to guide you every step of the way. Don't hesitate to reach out—call us today at 0230 608 0055 or fill out our online form to get started. Your peace of mind is just a call away!