Nursing home bond

Does anyone here know anything about nursing home bond asset assessments? I understood that in some cases elderly person has been asked to pay enormous bond before they can enter to the nursing home and the only way them to do so is to sell their family home. This can create a lot of stress for elderly people as well as fire sale circumstances.

Are there any ways legally to avoid this?

e.g. If elderly couple owns the house. Let's call them Bruce and Sheila. Sheila passes away but had made a will and leaves her portion of their assets to their children but give Bruce 'the right to use' them for the rest of his life. In the other words children can not force the sale of the assets and leave Bruce without place to live. A couple years later Bruce is not in good health and have to go to the nursing home, he does not need to pay a bond and sell the assets (family home) because he does not fully own it.

 

Thanks Wylie for the hint. I have to find out more about the other possible arrangements. I was just wondering if there is legal way to avoid both interest and asset sale.

 

You need to start planning many years out to avoid the bond. Best way to avoid is to not have any assessable assets when the time comes.

 

If you expect the taxpayer to support you this is entirely possible if you have little or no assets. However, your choices will be limited as fully funded places are not widely available.
Marg

 

Different level of accommodation if you don't pay a bond. A lot fewer rooms are available at fully funded pensioner rates.

The rooms will tend to be 3-4 share, no private facilities (unless you're lucky).

If the person doesn't have assets (cash or home), then they have to rely on pot luck. A life estate is not an asset which can be sold or disposed of in other ways.

 

Different in my home market. My mother worked for one of the larger providers in the region until recently and there was no differentiation on product/accomodation based on bond payments

 

@SonOfTrigger in NSW they're privately run eg bupa, allinity, uniting care etc.

Payment of the bond gets you a certain level of accommodation eg single or couples room vs no bond into 4 multi shared room.

Those on a pension are generally fully funded.

 

There are numerous way to address fees and bonds. Our age care team give clients advice on this regularly and it can change outcomes. Sadly most applicants incorrectly complete Centrelink / ACAT forms. Once the ACAT assessment is done its very hard to change it. There are exceptions for carers (ie a adult child looking after the aged parent) but the rules are VERY strict and require evidence. Asset and income planning is often very effective. Even small issues like depleting assets to within the tests by prepaying funerals can assist. NOT gifting.