Selling the Family Home for Aged Care

When aged care is mentioned, the family home is often one of the first big discussion points. It’s emotional – and can feel overwhelming – especially if there was no plan in place.

When you’re presented with a RAD (Refundable Accommodation Deposit) that could be $600,000+, selling the home might seem like the obvious option. But before you make that decision, it’s essential to understand the impact it could have on your pension entitlements and aged care fees.

How the Family Home Is Treated in the Means Test

Under the aged care means test, your home is only assessed up to a capped value of $206,663 (as of 30 July 2025). So even if your home is worth $1.3 million, almost $1.1 million is exempt from aged care fee calculations.

Here’s what else you should know:

• For the Age Pension, your home is considered an exempt asset for up to two years after you enter aged care.
• Any RAD you pay is also exempt from the pension assets test.
• If you choose to keep the home and fund the RAD using other resources (like savings or investments), you may get an exemption on both the home and the RAD – potentially increasing your pension or qualifying when you didn’t before.

The Bottom Line: Strategy Matters

Everyone’s situation is different. What’s important is knowing that how you fund aged care really matters. There’s no one-size-fits-all approach. Getting it wrong could mean you end up paying far more than necessary.

What Our Clients Say

“When our family faced the daunting task of arranging specialist support for our mother’s care and managing complex property matters, Claudia’s guidance was invaluable. Her concise and pragmatic advice to “Just sell the house and pay the RAD” cut through what would have otherwise been an overwhelming situation. This single piece of advice was the most effective and practical information we received, providing immense clarity and direction during a challenging time.”
 –  Andrew, Google Review

“Her knowledge and quick thinking was calming and reassuring, because it is nightmare dealing with Aged Care Facilities and finances. A follow up call was easy, filling in paper work was a breeze, and Claudia explained everything again just to confirm that I understood the process perfectly. She is a absolute angel,Thank you again. And just to top it off, she worked out and predicted actual figures to the cent. I was so impressed,she saved my mother so much money. I would not hesitate to recommend Claudia for Financial Advise because she is accurate,honest and a lovely human being to deal with.
Thank you Aged Care Services and of course Claudia.”
 –  John, Google Review

We have plenty more testimonials from happy clients – you can read them here or on Google.

Next Steps

If you’re considering selling the family home to fund aged care, it is highly recommended you speak with a specialist first. The right advice could help you keep the home, reduce fees, and increase government support – without making rushed financial decisions in a time of stress.