The simple answer is that the assets and income of a couple are assessed on a 50/50 basis, and the home is exempt while one member is living there. However, if both members of a couple are entering care, the timing of the move can create very different outcomes.
If you are a couple entering residential aged care, it’s important to understand how the timing of your move can affect your means assessment. The general rule of thumb when it comes to assessing income and assets is that each person has a 50% share, regardless of legal ownership. The family home is exempt from assessment while one member is living there.
If you both enter care on the same day, you will each have half the value of the home, up to the capped amount of $201,231.20 (correct 1st July 2024), included in your assessable assets. However, if you enter care on separate days, the house will be exempt for the first to enter care, and half of the house’s value, up to the capped amount of $201,231.20, will be assessed for the second person.
Depending on the value of the home, other assets, and the amount of assessable income, entering care on different days can mean that the first person qualifies as a Low Means resident.
This is another example of a situation where professional finance advice can make a big difference to the end financial outcome when needing aged care.
