Seniors entering as Low Means Aged Care Supported Resident

by Christine Hopper

Seniors entering as a Low Means Aged Care Supported Resident present an additional paperwork challenge for their families. Accepting that a loved one needs residential aged care is difficult for most families. Yet in their grief, families are confronted with official paperwork and the huge Assets and Income form for Centrelink.

Aged care facilities set aside some places for Low Means Aged Care Supported Residents. These are entrants who have proved to the Commonwealth that they really do have Low Means and are thus entitled to Supported Resident places. The Commonwealth pays some Accommodation Supplement in respect of Seniors entering as a Low Means Aged Care Supported Residents.

Aged care facilities want to admit Supported Residents to fill relevant vacancies but not to allow a Supported Resident place to be occupied by an ineligible senior. The solution to this challenge is for the aged care entrant to have their big Centrelink , “Permanent Residential Aged Care Request for a Combined Assets and Income Assessment”, for assessed before a Supported Resident place applying for aged care entry.

Supported Resident places for Low Means aged care entrants with very little wealth

Aged care entrants with few financial resources are entitled to have the Commonwealth pay at least part of their aged care accommodation costs. These financially challenged entrants must obtain Supported Resident status before they can access a Supported Resident place in Commonwealth regulated aged care.

But the Commonwealth wants to be sure that no homeowner or otherwise well-endowed, aged care entrant is allowed Low Means Supported Resident status.
The only way to verify Low Means Supported Resident status is to have an Assets and Income form assessed. The normal processing time for Assets and Income forms is at least ten weeks, much longer in busy times and across the summer holiday period.

But now the processing of Assets and Income forms for potential Low Means Supported Residents can be expedited to allow these seniors to access permanent residential aged care. The family, or a social worker, actually needs to call the Aged Care Team at Centrelink in Canberra and ask for priority processing of a Supported Resident’s Assets and Income form. But Centrelink still take a few weeks to process even the simpler Assets and Income forms.

In the meantime potential Low Means Supported Residents might need to stay in hospital, interim care or utilise an aged care Respite place.

Low Means Supported Residents must have very limited resources,

Processing of Asset and Income forms for potential Low Means Supported Residents can be straight forward for renters with little savings and only the Age Pension for income. Just one month might elapse between lodging the Assets and Income form and receiving the Supported Resident status letter from Centrelink.

Claims for Supported Resident status because a close relative lives in the aged care resident’s home require assessment of the ongoing occupant.

If a partner occupies the aged care entrant’s home, the home is clearly exempt. Centrelink need more time for checking if the occupant of the aged care resident’s home is a close family member whose main income is a Centrelink Pension, either DSP or Age Pension.

Claims for Supported Resident status because the aged care entrant has very little equity in their home attract close scrutiny. For Supported Resident status your assets need to be clearly under $166,000 and your income is the Age Pension at full or almost full rate.

Remember you can deduct from your home’s value any loans secured against your home. Your accumulated debt under a reverse mortgage could be debited to your home’s market value to show your equity in your home. Centrelink would require proper signed documents for any loans from family or friends to be deducted from your home’s market value.

If your home is an assisted living apartment or an independent living unit in a lifestyle community retirement village then your home equity is the amount that you could get back when you move out. The ‘exit fee’ and deferred service management fees are deducted from your outgoing payment to yield a relatively low home equity value.

Practical steps to prepare for aged care entry as a Low Means Supported Resident.

If your elders have few assets then start preparing as soon as a family member has a medical incident or is just declining such that aged care might be needed.

Once you have an ACAS allowing for Permanent Residential Aged Care then you can lodge your “Permanent Residential Aged Care Request for a Combined Assets and Income Assessment” SA457 form with Centrelink. When aged care admission becomes urgent you could call Canberra to have assessment of your SA457 form expedited because you need a Supported Resident place urgently.

If you aged care entry is not urgent then you can relax knowing that your Supported Resident application is in the system. Once the Centrelink letter arrives, the Low Means Supported Resident status is a valid for 120 days from the date Centrelink issued the letter.

Help is available to complete the Centrelink aged care entry challenge

Assistance with completing the Commonwealth aged care means testing forms is available to clients of Financial Care Services.
Financial Care Services charges hourly rate fees for helping with Centrelink matters.

Financial Care Services your independent  adviser

Help is available. If you are not sure if your family member would qualify as a Low Means Supported Resident then a consultation with Financial Care Services could assist you to understand how your position might be considered by Centrelink.

Christine at Financial Care Services understands the DVA Pensions and Centrelink assessment of the means tested amount for aged care both home care and residential aged care.

A consultation with Financial Care Services helps you understand your potential aged care costs together with the DVA and Centrelink implications of rearranging your assets, leasing or selling the former home.

Financial Care Services welcomes clients from Melbourne and beyond.

Call Christine on 03 9808 0338 to make an appointment for a consultation. Please email your enquiry to christine@financialcareservices.com.au. to receive a Financial Care Services Client Services Guide and Aged Care Data Checklist.

Assistance with completing the Commonwealth aged care means testing forms is available to clients of Financial Care Services.

Financial Care Services does not base fees on the value of your assets nor do we accept any commissions or payments from other service providers.

Arrange an appointment for further confidential, independent and professional advice about aged care, assisted living, DVA, Centrelink, lifestyle or granny flat issues please contact Christine Hopper 03 9808 0338.

Disclaimer:

The information contained in this website is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility.

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