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Nursing home bond

Discussion in 'Legal Issues' started by Tillie, 7th Sep, 2015.

  1. Tillie

    Tillie Well-Known Member

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    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.
     
  2. wylie

    wylie Moderator Staff Member

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    You can enter a nursing home without paying the full bond. You pay interest on the unpaid balance. You can call a nursing home direct to discuss this or a broker who finds places in homes. There are various ways.
     
  3. Tillie

    Tillie Well-Known Member

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    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.
     
  4. SonOfTrigger

    SonOfTrigger Well-Known Member

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    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.
     
  5. Marg4000

    Marg4000 Well-Known Member

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    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
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    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.
     
  7. SonOfTrigger

    SonOfTrigger Well-Known Member

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    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
     
  8. wylie

    wylie Moderator Staff Member

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    When we have had to find places, we were told the number of "free" places was low compared to funded places, and hard to get. No difference in the product/accommodation, but not easy to get a placement.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    @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.
     
  10. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    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.
     
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