Providing for nursing home

Discussion in 'Financial Planning' started by MTR, 1st Mar, 2020.

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  1. MTR

    MTR Well-Known Member

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    Note from mods: split off from another thread

    MIL just went into nursing home $750,000. House goes on the market Friday. Goodbye inheritance.
     
    Last edited by a moderator: 2nd Mar, 2020
    MTR, 1st Mar, 2020
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  2. Islay

    Islay Well-Known Member

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    Yes, my mum went into a high care nursing home January last year. The house was sold June last year. The on going monthly costs are a thing too.
     
    Islay, 1st Mar, 2020
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  3. Nodrog

    Nodrog Well-Known Member

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    And if both parents are still alive but one is in a nursing home the house may not be able to be sold to fund high care expenses. Seen this go on for years where one of the parties had severe dementia being too difficult for the partner to care for. Very sad and very costly.

    Post work can be broken into three financial components: retirement, potential nursing home residence and legacy.
     
    Nodrog, 1st Mar, 2020
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  4. Islay

    Islay Well-Known Member

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    And if a nursing home is our fate we want one with a proper coffee machine and barista! None of this international roast and Pablo I have been reading about on these threads :)
     
    Islay, 1st Mar, 2020
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  5. MTR

    MTR Well-Known Member

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    You must be kidding.....

    This is nursing care...You are told when, where and what you watch on TV, what you eat, when you eat. You have an OT providing some silly games

    Lets not kid ourselves its an institution
     
    MTR, 2nd Mar, 2020
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  6. kierank

    kierank Well-Known Member

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    ... plus a personal wine cellar, continually stocked with good shiraz .
     
    kierank, 2nd Mar, 2020
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  7. HomePage

    HomePage Well-Known Member

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    Isn't the $750K a refundable deposit, paid back to the estate upon death? If so, yes it is not adjusted for inflation but in our current low inflation conditions, it won't erode too much in the couple of years average most people end up being in a nursing home.
     
    HomePage, 2nd Mar, 2020
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  8. kierank

    kierank Well-Known Member

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    ... and Government guaranteed.

    So, no goodbye inheritance.
     
    kierank, 2nd Mar, 2020
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  9. geoffw

    geoffw Moderator Staff Member

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    The ones I'm familiar with have a TV in every room. Residents can choose what they want to watch in the common room TV.

    There is no choice when you eat, but there's a choice of two main courses, unless you're in a restricted diet. The quality is generally not bad. Dinner is always ridiculously early.

    Entertainment may consist of outings, music events (people coming in to sing or less singalongs), music appreciation, crafts, special morning teas or visits from the local preschool. And while there are "silly games", these are often well appreciated. For residents with dementia especially, a simple game provides a welcome diversion from the boredom which would result from being left to their own devices. But many residents appreciate a simple game as a diversion and as a way of interacting.

    One provides a coffee machine for residents which grinds coffee and can produce a passable cappuccino or espresso. They use decaf beans however. But there's also a cafe attached to the facility.
     
    geoffw, 2nd Mar, 2020
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  10. geoffw

    geoffw Moderator Staff Member

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    Fees are taken out of the deposit, though a large portion of the resident's pension is also applied. The unused part of the deposit goes back to the resident's estate.

    To get an idea of fees
    Fee estimator | My Aged Care
     
    Last edited: 2nd Mar, 2020
    geoffw, 2nd Mar, 2020
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  11. Nodrog

    Nodrog Well-Known Member

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    only if one qualifies for the aged pension. Many here at PC are likely hoping to achieve better than that. If one’s partner is in the nursing home but the other still lives at home the high fees need to be budgeted for.
     
    Nodrog, 2nd Mar, 2020
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  12. Player

    Player Well-Known Member

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    Also be aware, pension may be lost (if a widow or widower) after two years absence from the PPOR as that main residence becomes an asset. Depends on value of course however any median priced house will pass threshold. If the house has been sold as @MTR mentioned, that would trigger an event anyway. We are going through this with my wife's mother. Pension lost. The house has been kept and rented out (for a net pittance compared to pension). We and her sister funded the accommodation deposit and are funding the gap of her accommodation. Grateful we are in a position to do so. Gotta do the best you can for them..but, learn the rules everyone and play by them so there are no surprises.
     
    Player, 2nd Mar, 2020
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  13. geoffw

    geoffw Moderator Staff Member

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    Also income and assets play a part in how much a resident will be charged.
     
    geoffw, 2nd Mar, 2020
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  14. Nodrog

    Nodrog Well-Known Member

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    It was a battle to get my mother to sell the house before the two years expired. She couldn’t let go of hoping to one day return home which was never going to be possible. Every day she dreamed of being able to tend to her garden again. Even when it was sold she never stopped thinking of it. Her home and the memories of life there including raising the family, the garden, the neighbours was everything,
     
    Nodrog, 2nd Mar, 2020
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  15. Heinz57

    Heinz57 Well-Known Member

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    That’s a sad story. Makes you wonder when our time comes moving in a carer and reverse mortgage might be the go.
     
    Heinz57, 2nd Mar, 2020
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  16. MTR

    MTR Well-Known Member

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    i guess I have a different perspective as I worked in a dementia unit for over 20 years. (Government)
    Dont wish this on anyone.
     
    MTR, 2nd Mar, 2020
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  17. MTR

    MTR Well-Known Member

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    i dont want to go into the specifics other than to say the money will run out in 10 years
    Her capital/bond is eroding
    Comes down to value of property and bond and value of the property can be less than the bond
     
    Last edited: 2nd Mar, 2020
    MTR, 2nd Mar, 2020
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  18. Player

    Player Well-Known Member

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    Yes.

    There are always other qualitative factors that affect the financial prudence that those decisions require. :)

    Never a straight forward or easy undertaking by the children. :(
    We still hear why she was relocated to the Gold Coast to be near us and couldn't stay in her home with 24 hours nursing care.
     
    Player, 2nd Mar, 2020
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  19. wylie

    wylie Moderator Staff Member

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    Our father went into a very nice nursing home, and we paid a premium for him to have a beer each evening and a few extras that we wanted him to have. I recall back in about late 2009 it was costing us $750 a week for this care.

    His bond was $500k and most of that came back in 2012 when he passed away. They can only take a certain amount before a limit is reached.

    With rental houses that we were managing for him, his daily care was covered by the rent from two houses.

    Planning is key.
     
    wylie, 2nd Mar, 2020
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  20. MTR

    MTR Well-Known Member

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    its not just planning, its also dependent on the value of the property and the bond of care facility

    your scenario is different from our scenario
     
    MTR, 2nd Mar, 2020
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