General Medical issues thread

[prozac]

My brother lives in the house and yes we will get legal advice before we do anything.

Need to sort dad out first. He is suffering.

I am not qualified to give advice...however something I am looking at is a testamentary trust. You put all assets into the trust but it is not activated until you die. The advantages are keeping the assets safe from say daughter's future husband in event of divorce. Also enables any assets sales to be more tax-effective as children can be used to share the tax burden as the low income amount (currently $18k odd) would be used for them as if they were adults, instead of tax from $0.01 applied if a minor. I am told it will cost around $6k to set up including wills etc.. Talk to your tax planner.

 

[Freq Flier 2013]

I am not qualified to give advice...however something I am looking at is a testimentary trust. You put all assets into the trust but it is not activated until you die. The advantages are keeping the assets safe from say daughter's future husband in event of divorce. Also enables any assets sales to be more tax-effective as children can be used to share the tax burden as the low income amount (currently $18k odd) would be used for them as if they were adults, instead of tax from $0.01 applied if a minor. I am told it will cost around $6k to set up including wills etc.. Talk to your tax planner.

We have done the same.

 

[tgh]

A testamentary trust is conceptually useful and we are so structured, however there are a lot of prickles …caveat emptor...

 

[Pushka]

@JohnK's very sad plight is currently being played out across thousands of family groups in Au with little hope of positive outcomes.
As a nation we are not prepared for this crisis and we should have been.
The people were warned, it has been discussed for decades …..no good just blaming the pollies.

What did you imagine was going to happen to your parents @john K ?
What have you done to prepare for them.. or even more.. your own family ?

Hospitals are clogged with dependent folks and there is simply nowhere for most of them to go.
It takes extraordinary amounts of money to self care even if carers can be found.
Guvmn't has legislated very high carer charges in an attempt to make the exercise sustainable and fair to employees , this has
probably driven a majority of currently independent aged into the arms of a social system that cannot cope.

I entreat everyone who is retired or with aged parents to urgently prepare for survival with a broken social aged care system

The demographics have been there for years but successive Governments have refused to acknowledge what will happen as the population ages and prepare for that. And lack of aged care options is what leads to public hospitals being full to overflowing leading to lack of hospital beds leading to ambulance ramping. Across Australia. And stay at home care packages are so slow to be implemented. I know from experience that nursing homes ship people to hospital at the first sign of a health issue that will take too many of their resources to manage even if it's just temporary.

A testamentary trust is conceptually useful and we are so structured, however there are a lot of prickles …caveat emptor...

Do tell. It's something we are thinking of too.

 

[Quickstatus]

All they have is house and $20,000 in bank that they've saving for funeral expenses.

Services Australia calculates what you dad need to pay. They will already likely have all the info they need but you should check with them. But from what you say, all he only needs to pay is 85% of his old age pension for his nursing home costs

We may avoid mum losing house if dad goes in nursing home

No that is very NOT true.
If a spouse who is considered a "protected person" is living and continues to live in the house, it is not part of the calculation toward nursing home contributions.

To avoid potential drama I thought about mum and dad transferring property to my brother and I

Services Australia looks at the assets that was held in the last 5 years. Disposition of assets within that 5 year period is ineffective to avoid nursing home contributions liability but in your mother's case it is not considered in any calculations if she continues to live in it.

Strongly suggest financial advice in circumstances like this.

 

[Quickstatus]

Further, while the marital home is exempt for the purposes of nursing home contributions if a protected person continues to live in it (eg spouse), the moment the spouse does not live in it or the house is sold/transferred (eg into a trust or ownership by another person or entity), it is my understanding that Services Australia will recalculate your dad's contribution EVEN if he is already a nursing home resident.

The value of the marital home that is used to calculate the nursing home contribution is currently indexed at $210,000 per spouse (as per July 2025) - this is called the home exemption cap. Again if no protected person is living in the home.

You and your daughter are not protected persons - unless you are on an Australian income support and have been living in the house for at least 5 years

 

[Pushka]

Further, while the marital home is exempt for the purposes of nursing home contributions if a protected person continues to live in it (eg spouse), the moment the spouse does not live in it or the house is sold/transferred (eg into a trust or ownership. Y another person or entity), it is my understanding that Services Australia will recalculate your dad's contribution EVEN if he is already a nursing home resident.

The value of the marital home that is used to calculate the nursing home contribution is currently indexed at $210,000 per spouse - this is called the home exemption cap.


You and your daughter are not protected persons - unless you are on an Australian income support and have been living in the house for at least 5 years

Mum was on full pension with $100,000 cash assets from Dads pension, no house. She lost all her pension plus had to pay around $100 a fortnight.

 

[Quickstatus]

She lost all her pension plus had to pay around $100 a fortnight.

Services Australia looks at all the assets.
Why did she lose her pension?

Income from $100k cash based on deeming rates will not cause loss of pension.

 

[Pushka]

Services Australia looks at all the assets.
Why did she lose her pension?

Income from $100k cash based on deeming rates will not cause loss of pension.

Lost it in the sense the Nursing Home fees were the same as the pension plus a co payment. So not 85% in her case. But all of it.

 

[VPS]

Lost it in the sense the Nursing Home fees were the same as the pension plus a co payment. So not 85% in her case. But all of it.

that was quite some time ago thought wasn't it. Things have changed quite a lot now

 

[Pushka]

that was quite some time ago thought wasn't it. Things have changed quite a lot now

About 10 years! Exactly. And I did state 'in her case'. I do know there was also the option for a nursing home bond back then.

Things change so much and yet we are told to plan for it. I guess they really mean, put more and more money away for it. Then we are told that retirees with super are departing with too much money so spend it. .

 

[VPS]

About 10 years! Exactly. And I did state 'in her case'. I do know there was also the option for a nursing home bond back then.

Things change so much and yet we are told to plan for it. I guess they really mean, put more and more money away for it. Then we are told that retirees with super are departing with too much money so spend it. .

it is very complex and I do feel for people who don't have someone to advocate for them.

Friend's father had no money so they found a broker to find him a nursing home because all Nursing homes must provide x number ( I think 2) beds for people with no money.

I think retirement villages are often much more of a rip off than nursing homes. Another friend's mum was in one for over 25 years and they really only pay back what you put in which was a pittance if you consider it now