Patty Kikos speaks with Kerri Mendl, who is passionate about educating people about the different options they have when it comes to entering aged care facilities, especially when it comes to getting the financial support they’re entitled to, as well as protecting their assets. You’ll want to grab a pen and take some notes for this amazing episode. GUEST: Kerri Mendl - https://alteris.com.au/ SOCIAL MEDIA: Follow Patty on Instagram Follow The Benevolent Society on Instagram Follow Carer Gateway on Facebook Follow The Benevolent Society on Facebook CREDITS: Host – Patty Kikos Producers – Patty Kikos and John Hresc Sound Engineer – John Hresc GET IN TOUCH: Carer Gateway is proud to offer emotional and practical services and support for carers with the aim of making your life easier. You can call us on 1800 422 737 to find out more about peer support groups, counselling, coaching, online skills courses, tailored support packages, emergency respite, other government supports, as well as tips and information, or visit our online home at www.carergateway.gov.au ACKNOWLEDGEMENTS: The Benevolent Society acknowledges the Traditional Owners of the Land we have recorded this podcast on, the Gadigal people of the Eora Nation. We pay our respects to their Elders past and present and extend that respect to all Aboriginal and Torres Strait Islander cultures.
Patty Kikos speaks with Kerri Mendl, who is passionate about educating people about the different options they have when it comes to entering aged care facilities, especially when it comes to getting the financial support they’re entitled to, as well as protecting their assets. You’ll want to grab a pen and take some notes for this amazing episode.
GUEST:
Kerri Mendl - https://alteris.com.au/
SOCIAL MEDIA:
Follow Patty on Instagram
Follow The Benevolent Society on Instagram
Follow Carer Gateway on Facebook
Follow The Benevolent Society on Facebook
CREDITS:
Host – Patty Kikos
Producers – Patty Kikos and John Hresc
Sound Engineer – John Hresc
GET IN TOUCH:
Carer Gateway is proud to offer emotional and practical services and support for carers with the aim of making your life easier.
You can call us on 1800 422 737 to find out more about peer support groups, counselling, coaching, online skills courses, tailored support packages, emergency respite, other government supports, as well as tips and information, or visit our online home at www.carergateway.gov.au
ACKNOWLEDGEMENTS:
The Benevolent Society acknowledges the Traditional Owners of the Land we have recorded this podcast on, the Gadigal people of the Eora Nation. We pay our respects to their Elders past and present and extend that respect to all Aboriginal and Torres Strait Islander cultures.
Patty
OK, makes sense. So many of my clients will say that they, (and they mean the hospital or the social work or even aged care homes), tell me that I've got to fill out this form to get assessed. What happens when I do this?
Kerri
Great question. It's so important to know that once you lodge that form, it actually sets in train a motion. It sets a train in motion that could go to the wrong destination. If Centrelink things that you've got more assets, you could be stuck paying much higher fees, you could even miss out on the government support that you could otherwise be eligible to get. So there's no undo button on this one. You cannot uncook A chook. So make sure Centrelink has all of your updated details you know, make sure they know if the cards gone get that updated before you complete the forms.
Patty
OK. So even though you might be feeling pressured to complete the forms, contact Centrelink update your details first, THEN complete the form. I feel like this is really important. Kerri, who assesses the fee that the resident will pay at the aged care home is the aged care home?
Kerri
No, not at all. It's actually going to be the government. So, Services Australia Residential Aged Care, they are the ones who are going to assess the fees that the to the resident will be paying. So, there's other fees that can be agreed between you and the aged care home.
Patty
OK, so there's 4 fees and up to 3 of those fees are determined by the government or Services Australia. Do you mind explaining what they are for us?
----
Billy:
From the Carer Gateway at the Benevolent Society, we welcome you to, Carer Conversations with your host Patty Kikos.
The Care Gateway is the Australian Government national care hub and provides reliable services, support and advice especially for carers.
This podcast is where we share interviews with guests that have specialized knowledge to help support carers to look after their emotional, mental and physical well-being.
We are recording on Aboriginal country, on lands which were never ceded. We acknowledge the traditional custodians and cultural knowledge holders of these lands and waters. We pay our respects to Aboriginal elders, past and present.
Always was, always will be.
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Patty
Welcome back to our precious podcast, my lovely listeners. Today we will discuss money. It makes the world go round. But why does it make us uncomfortable to talk about it?
Because we do need to talk about it, especially when our loved ones become elderly and need to go into care. What do we do? Do we need to sell their house? Will it affect their pension? What if they're self-funded retirees?
Because I'm about to introduce you to Kerri Mendell, whose mission is to ensure those moving into aged care clearly understand the fees and pension before making important decisions. The services she offers includes all the work with Centrelink and Services Australia's Residential Aged Care department to make sure that the pension and the aged care fees are correct initially, and at each stage of your journey.
Now one of our previous episodes was with Paul Murphy, who covered all the essential questions regarding going into aged care. So today is the little sister or maybe the baby cousin episode about the finances that you need to consider when putting your loved one into care. Now a lot of what we will cover is technical, so you might need a pen and paper. Handy. And remember we always have transcripts available. For you as well. Kerri!!!!
Kerri
Hello! Hello Patty!
Patty
You flew in from Queensland to be with us today so that we can record live. What time did you need to wake up in order to make your flight?
Kerri
Well, I had the alarm set for 4:00am, but joy to thanks to the joys of perimenopause. I was actually awake at 3am!
Patty
Ohh my goodness. And I know you only had one coffee this morning. At least we got to have it together. Your mum was an aged care nurse. Did you visit her at work and hang out with the residents? Because you've kind of come full circle by supporting people that are now going into Aged Care.
Kerri
It really is a full circle. Yes, I absolutely did visit mum at work because I was in primary school when she worked for Tricare, she would pick me up after school. She'd take me back to work with her and I would hang out in the staff room and do homework, but then I'd go and hang out with the residents, and I thought, “ohh look, I'm giving them a visitor and being so lovely”.
But Mum was actually getting free babysitting. {both giggle}
Patty
So, she was very resourceful.
Kerri
Absolutely. Single parent.
Patty
Take me back to 2016, when your father in law went into Aged Care and this ended up being a really pivotal time for you, because you did not want others to go through what you and your husband experienced, which I guess is probably your mission statement because to some extent this big light bulb made you segue careers. Walk us through that.
Kerri
Time. Yeah, it was like many people. My father-in-law, Peter, he had one fall too many. The hospital said he wasn't able to return home. And then things started happening really quickly. My husband, it was his brother and sister. The three of them, who were making the decisions and they it really shocked me just how quickly everything was going. And they were pressured into making big decisions and without having all the facts without having all of their options on the table. So they knew the consequences of them.
Patty
So things like selling assets or homes.
Kerri
Absolutely. And I think it's really important that people know exactly what the impact of those consequences are, because there's no undo.
Patty
Yeah, right. So things like the cost, their options, what changes the fees for the pension, I mean, would this something that was awkward for you to ask because even though you had a financial background, it wasn't your dad and you probably didn't wanna come across as though you were this daughter in law that was scheming to.
Kerri
Get his money or something? Ohh, absolutely it it. Even though I work with money, I was. Just a regular financial advisor. Back then it felt like ohh no, that's really personal. That's his money. Nothing to do with us. I was a little bit concerned. Would my husband and I be asked to contribute towards the cost?
Patty
Hmm. Yeah, I mean a common mistake is not understanding how fees change. Change and the pension can change as well, and these kind of decisions can have consequences, not just on the aged care fees, but potentially they can affect the will as well. Now Kerry, I've got a loaded question for you. Why are we or maybe most of us, so awkward when it comes to talking about finances or money.
Kerri
Well, a lot of this generation who are now going into aged care, it's. That. It's so private and it's private for a, you know, other generations as well. We don't tend to talk about money. It's a really personal information.
Patty
So when you say this generation going into care, you're probably referring to the boomer, what's known as the boomer.
Kerri
Generation or people who were born in the 1930s, nineteen 40s, we're now starting to see people who are born in the 1950s.
Patty
Going into care, of course, yeah.
Kerri
Yeah.
Patty
So you've said that the way you speak to a child that's caring for a parent is not the same as how you'd speak to a partner caring for their spouse. What's the main difference?
Kerri
Main difference? Well, partners are going to be sharing assets even if they manage their money separately, they're still going to be very closely related. You know wanting to have those assets in common. Whereas when you're the child, it's that separation. Well, you normally have your assets separate, so it's like, OK, your money is yours.
Patty
Yeah, that makes sense. Kerri, what if I'm not an Australian citizen? Can I still get access to aged care?
Kerri
Hmm, great question. It does come up quite a bit, so if you've been able to get an aged care assessment so an A cut, then you're going to be fine. You're going to be in the to the same system that we're about to talk about right now. But if you're not able to, then you'll be paying for aged care as a private patient and that will cost more.
Patty
OK, we've already covered what respite is in our previous interview with Paul Murphy, and of course, we're gonna have a link to that in our show notes. But in a nutshell, the government says that we can get 63 days which is equivalent to about 9 weeks of respite before we either go back to home care or go into permanent care.
Now, most aged care centre’s will not let you do the whole 9 weeks in one go, so you have the option of trying a few different centre’s. Sometimes the aged care home that you want is full, and it's full of permanent residents and you might have to wait till a room becomes available and then go on a waiting list.
And then you've got the option of respite, but only for 1 or 2 weeks. Kerri is it correct that the cost is currently 62 bucks a day, which is approximately 85% of the pension. If the facility has extra services, you might get charged for those like, you know, Foxtel etc, and if you're unsure whether you can even afford these respite fees, Carer Gateway might be able to help you. So, Kerri is that right, is it 62 bucks a day?
Kerri
That's exactly right, Patty.
Patty
OK, so now let's segue into discussing permanent care, because this is when the cost of care will absolutely change. When will the pension cover aged care fees?
Kerri
It's really important for people to understand that you can actually get a lot of government support. There will be an initial means test assessment and that's going to determine whether you're going to have the accommodation subsidised by the government or not.
It's only done on the entry to aged care. The people who will have their aged care paid for. You know, their pension will actually cover all of their aged care costs. Those people who have got their assets under $60,000 and their house is ignored if it meets the criteria for it to be ignored.
Patty
Say for example a spouse or someone else been in the house, which we'll cover later on, OK.
Kerri
That's exactly right, yes.
Patty
Super quickly assets are considered to be?
Kerri
Assets will be obviously what you've got in the bank and investments, but it'll also be your contents such as your car or your caravan.
Patty
OK. That makes sense. So for couples, since you brought that up, there are things to consider regarding the pension when the person entering care has a spouse, when does the pension increase for couples?
Kerri
So we talked about how the $62 was 85% of the pension, but for couples, they're going to get that single rate when they start permanent care. But you must let Centrelink know, because otherwise they don't know to change the pension.
Patty
That's right. And that's when they're going to be considered an illness separated couple.
Kerri
That's exactly right.
Patty
When someone has gone into permanent care and you've let Centrelink know because they don't backdate, that bad boy.
Kerri
Mmmhmm.
Patty
Will the pension remain the same?
Kerri
Well, one once the pension goes up, so that's going to go up by around $275 each.
Patty
So that's a big Increase once you've become an ‘illness separated couple’.
Kerri
Right, that's exactly right.
Patty
That's a bit significant.
Kerri
Absolutely. It is what happens to their pension if they keep their house, but there's no spouse that's living there. So, for pension, the house is going to be 100% exempt if there's a spouse in there. But if the spouse is actually left or there's anybody else living in there, or not, then after 2 years, we're going to find that that house is now considered an asset and that could have an impact on the pension.
Patty
I see. And so how much your pension reduces kind of depends on what the property's worth.
Kerri
Yeah, at that time in 2 years.
Patty
OK, makes sense. So many of my clients will say that they, (and they mean the hospital or the social work or even aged care homes), tell me that I've got to fill out this form to get assessed. What happens when I do this?
Kerri
Great question. It's so important to know that once you lodge that form, it actually sets in train a motion. It sets a train in motion that could go to the wrong destination. If Centrelink things that you've got more assets, you could be stuck paying much higher fees, you could even miss out on the government support that you could otherwise be eligible to get. So there's no undo button on this one. You cannot uncook A chook. So make sure Centrelink has all of your updated details you know, make sure they know if the cards gone get that updated before you complete the forms.
Patty
OK. So even though you might be feeling pressured to complete the forms, contact Centrelink update your details first, THEN complete the form. I feel like this is really important. Kerri, who assesses the fee that the resident will pay at the aged care home is the aged care home?
Kerri
No, not at all. It's actually going to be the government. So, Services Australia Residential Aged Care, they are the ones who are going to assess the fees that the to the resident will be paying. So, there's other fees that can be agreed between you and the aged care home.
Patty
OK, so there's 4 fees and up to 3 of those fees are determined by the government or Services Australia. Do you mind explaining what they are for us?
Kerri
Absolutely. So, there's the $62 a day basic daily care fee which is equal to 85% of pension. We've already covered that one with respite. Then we're going to have accommodation. So that's going to be at the rate that's agreed on with the aged care home unless the government has assessed that you're going to be receiving that government support. So, we're gonna call that concessional or low means. And that level of support is going to depend on what your assets, what you can afford.
The 3rd fee is the government is going to do and means tested care fee and that's for your actual cost of care. And again, the government will afford will do that assessment to determine what you can afford to pay for your actual cost of care.
Patty
OK, so back in respite, we mentioned that there can be an extra fee for all the bells and whistles like entertainment, Foxtel, extra meal options, hairdressing, etcetera. Nothing to do with care, that's the 4th fee, isn't it?
Kerri
Yes, that's right.
Patty
OK. So when it comes to permanent residential aged? Their fees say, for example, for a parent, if I'm worried whether they can afford aged care, does this mean that I might help have to help pay for it?
Kerri
Well, this was the concern that we actually had, but Aged Care has been designed to be affordable for everyone. That doesn't mean everyone's going to get the penthouse. There's going to be that means test, which is going to determine what a person can afford based on their assets and income when they first go in and then they're going to be checking in again.
There can also be different options available that can make that accommodation more affordable. You might need to use your own assets to help pay for the costs, but you don't need to worry about completely running out of money because there's Safety Nets that that exist. So, you as the child or anybody else won't need to worry that you're going to completely run out of money. That hardship's going to help with it.
Patty
I know you're gonna cover this later on. And how will the Aged Care fees be paid for?
Kerri
It's going to be directly out of the bank account and they're going to be charged a month in advance, so watch out for that, yes.
Patty
Yeah, that can hurt. Kerri, if someone has to pay for the accommodation because they have assets, it means they have to pay more than, say, the pension. How can they possibly reduce this fee?
Kerri
A simple way to be able to reduce the accommodation is simply to choose to pay a lump sum to the aged care home and that will offset up to all of that accommodation cost. Depending on how much you're able to pay. So, it could be a lump sum even if it's only $50,000 or $100,000 and that is going to be fully refundable when the resident leaves. I'll share more advice about this later.
Patty
Will all their money be spent on Aged Care fees so that they end up being left with nothing?
Kerri
That's a worry for a lot of people, but I want to make it really clear you will not completely run out of money if you access that safety net. You do need to apply for hardship using a hardship application form and you need to have. That criteria you can't just go and give all your money away.
Patty
Yes, that's really important. And we're gonna cover that soon. Is there any extra government support?
Kerri
Ohh there is a lot of government support. So, if someone has been assessed as or they've been classified when they first started care as concessional or low means, this means that their accommodation is going to be greatly subsidised.
The second level is that the actual cost of nursing care is going to be heavily subsidised by Medicare. The means to seek care fee is charged only when the assets or the income is at a level where you can afford to contribute towards this cost. No one's actually gonna pay the actual cost of nursing care because even if you're a self under retiree, there are annual caps and there's also a lifetime cap on that.
Patty
Oh, that's great to know. And then there's that hardship safety net that you mentioned earlier.
Kerri
Yeah. So let's talk more about hardship. So that's for people who have got a lower level of assets they don't need to be worried that they're going to be left with nothing. A hardship claim, once it's approved, gives more government support and the result is going to be that the pension will actually cover all of their aged care costs, even if they were assessed initially that they had to pay the accommodation at the normal rate. But there's criteria. So I mentioned before. You can't give away all your money, your house and then claim hardship. The threshold at the moment is 43 dollars, $43,000 for a single person or double that so $86,000 for a couple.
Patty
How can listeners work out whether their loved one would be concessional or not?
Kerri
OK, so if your assets are under a certain level, there's also an income test, but the magic level is $200,000.
Patty
So that's where you enter magic world?
Kerri
Yeah, we could definitely call it magic world! So, this is a test that's done when the person first starts aged care. So, if they're under $200,000, that means that you're going to be getting government support to be able to pay for your accommodation and your accommodation cost is usually gonna go down to the point where you'll eventually pay nothing if your assets get down to 60,000 for a single person or $120,000 for a couple.
Patty
And your assets will reduce obviously cause you're going to be paying for the cost of accommodations?
Kerri
Ohh absolutely yes.
Yeah, that makes total sense. What is the accommodation cost if someone is not concessional?
Kerri
For concessional people, the accommodation which is on top of the basic daily. Fee. It's going to range depending on what the government assess you can afford and that could be you don't put anything in at all or you could put up to $68. So if you're not a concessional resident then your accommodation cost is going to be a lot more than that. And for those people, I'm going to give you tips on how to reduce that cost.
Patty
How do I know if accommodation will be government supported?
Kerri
Great. So you want to get a pre assessment if you have a few months up your sleeve. If you're a homeowner, you can get a pre assessment by lodging the aged care assessment form and then services Australia residential aged care. We'll send you a letter telling you what the assessed fees are. If it's unclear, contact them as it outlines when the aged care home charges, not what you pay.
Patty
So you need to be 100% sure before starting your permanent care, cause you don't wanna find out too late do you?
Kerri
Well, you could be stuck paying a lot more, absolutely.
Patty
OK, so if you don't have a few months, the tips would be that you've gotta check the assets and income on Centrelink records because aged care fees are based on this and for couples you've gotta check for each. Person do lots of people think that Centrelink knows exactly what they have in?
Kerri
The bank? Ohh, absolutely. They think that they know exactly what they have. They think that it's all gonna be OK. Many people don't use my Gov and too many people are shocked to see Centrelink have all these assets. They think they've got super shares, cars, lots of things that they don't. Actually have.
Patty
Yeah. OK. So just to recap your accommodation payment is agreed between you and your aged care home and you can choose to pay your accommodation payment as either a a lump sum refundable accommodation payment which comes back to you a rental style, daily accommodation payment, or a combination of both. Kerry, I'm a little bit embarrassed cause I am in the industry, but there are some acronyms that are very confusing and I need you to dispel. I need you to dispel a few myths. What does RAD, DAP RAC and DAC even mean?
Kerri
A lot of acronyms. It can be really overwhelming. These are all ways to explain accommodation. If it's got an R in front of it, it means that you've paid a lump sum that's refundable. If it's a D in front of it, it means it's a daily cost, can I?
Patty
Can I check what the C means at the end?
Kerri
Absolutely!
Patty
Does it mean that you're concessional?
Kerri
That's it!
Patty
OK, so we've spoken about home owners. What about if you're not a home owner, what's the main difference when there's no home like you're renting? Or you might be living with family?
Kerri
Our system is really designed to benefit those who've got their own home.
Patty
Really.
Kerri
So take two people. We've got one person who's going into aged care, and they've got a house, and that house is exempt because it meets the criteria and they've got $60,000 in savings. They're going to be fully supported where their pension is going to cover their fees for as long as the home is exempt. Then we've got another person. And they don't own their own home. They've got $100,000. They would be assessed that they can afford to pay almost $20 a day for the exact same room.
Patty
$20 extra a day. Ohh my goodness. What changes the fees for a concessional person?
Kerri
Well, let's talk about the example that I just used. Someone who's got that $100,000, their fee will be initially higher and so they'll need to dip into their money, their assets go down and then they'll end up paying less when they. Asset eventually gets down to 60,000. They will be fully concessional.
Patty
Is there ever a time where fees could increase?
Kerri
Great question. So the first person we talked about, who they weren't paying anything for their accommodation, they could start paying more if their house stops being exempt.
Patty
Oh, OK. So in the other example where someone owns a home and has say 60 grand in assets, is it correct to say that they don't pay an accommodation fee because their house is exempt?
Kerri
Initially they won't pay any accommodation fee, but if they lose that protected person status then they will.
Patty
Well, OK. So we have a new topic here, protected person. So still for a homeowner and for couples where a spouse is in care. So say for example the home can be exempted. If you have a protected person who would be considered a protected person
Kerri
The big One is a spouse in the house, or if you happen to have a dependent. Child. The second one is going to be that if you've got a family member who's lived there for five years, but they must be on a pension or such as job seeker or carer payment.
Patty
Got.
Kerri
It and then the third one is that you've got a career. They've been living in the house for two years. They must be getting carer payment, not carer allowance, carer payment.
Patty
OK, So what if someone is living in that home but he's not receiving any of those payments because many are shocked when they're told that their house is included in their assets and it means that they need to pay a higher fee to the aged care facility. So say, for example, you're eligible to claim care or payment. It really means that you need to apply, don't you? Because it can be a huge difference to the fees, especially if your parents other assets are under 200K. 400K if you're a couple.
Kerri
That's right, Patty. There's so many people who are working, they've moved into their with in with their parents to take care of them. And in order to meet the protected persons criteria, you need to have been living there for two years. And you need to be now recognised as a carer, receiving that carer pain. Implement. So as I mentioned before, it's not the allowance. So there are rules around protecting people who are on a disability support pension and or they've done work on the property. So that might be another way to be able to get that property exempted. Please don't try to get around the rules by transferring ownership because the government will consider it. To be a gift, it needs to have been done five years ago. To be considered exempt, I'll share more about gifts later.
Patty
OK. So regarding the House, when the spouse is in care, say for example I want to remain here. Can I afford to do so or will they make me sell to pay for my husband's aged care?
Kerri
No, 100%, you cannot be forced to sell your own home. You might need to use your other asset. Its your house is exempt for the pension and also the. Fees. What if I?
Patty
Want to sell and move into a smaller place, closer to my husband. So for instance, if I have maybe 100 grand leftover. Or maybe even 300 grand leftover.
Kerri
Depending on how much you've got leftover, it could be affecting your pension, but we could find ways to be able to contribute that as a.
Patty
Lump sum, what happens if I also need to? Move into aged care.
Kerri
If. There's not going to be someone living in your home that meets those protected person criteria that we mentioned before. The broad rule that's going to apply is at your old home can now pay for your new.
Patty
Home. I see your point earlier about when you're renting or don't own a home. You can get a little bit short changed. Pun intended.Can I transfer the property to my child?
Kerri
Oh, if you are planning well ahead, if you got five years, but still you need to be making sure. Is that going to be affecting your circumstances? Now get advice, get it in writing, because if something happens in the next five years, it could have serious consequences for.
Patty
You so five years. So for example. And I transfer it to my children and then I say to the age capability, I have no assets, it's still going to be considered. An asset? Is that what you're saying? Absolutely no hardship. Ouch. Tell me about the two year rule in aged care when and when it applies.
Kerri
So the two year rule is in relation to the pension. So if there's not a spouse living in, it doesn't matter if it's a family member or somebody else. It's important to be aware the pension is going to change after two years if the property is worth more than a certain amount. The aged care fees won't change, but be prepared for the impact on the pension.
Patty
So what after two years, if you have a house and no spouse? Your pension is going to be reassessed as though your property is now an investment. Yes, OK. Balance is in care. If the House is in my husband's name, can his kids force me to? A. Move out.
Kerri
Ohh yes, look, that's seriously. It's a family law conversation. You really need a good lawyer in that situation.
Patty
I can imagine. So regarding the House, when a parent is in care. Can the property be given to me now because it's already left to me in?
Kerri
The will no while your parent is alive, the law considers that their assets are to provide for their needs, even if they want you to have.
Patty
That. OK, so let's go the reverse. Instead of my parents gifting it to me, can we? The children buy our parents house.
Kerri
Yes, but don't think you're going to get it for much cheaper. It has to be at market value, otherwise the gifting rules will.
Patty
Apply so if it's bought at less market value then it's considered a gift. Yes, I live in my parents property. What happens to me and can I still live here?
Kerri
The answer's going to be complex. We need to be considering a plan for what's going to happen after two years. Is the pension going to be impacted? We also want to be looking at your family dynamics. So are they enduring power? Are they enduring powers of attorney in agreement? Are you an only child? There's a lot. Ohh, there's a lot that we need to unpack.
Patty
Are there siblings? Yes. With that one, if the fees are more than the pension carry, is there anything that we can do to reduce the cost? I mean, what would be some examples of giving money away when you don't have a lot? And you can't. Really afford that? Extra accommodation fee on top of the daily fee. That's essential.
Kerri
For people who don't have a lot, there's still a lot that they can do. If you have a car and you don't need that anymore, you could gift it. But keep in mind what the value of the car is, because the limits are $10,000 for each financial year with a limit of 30,000 over any five year period. You could prepay a funeral you could do home renovations. You could pay other expenses.
Patty
So that cost of the car would also be considered in that 30K. Absolutely. OK. What if I give away more? So for instance, if I transfer a $100,000 into someone else's?
Kerri
Name. It's usually a huge mistake, so make sure you know what the impact is, not only for the pension, but aged care. If you need that anytime in the next five years. Because the gift would be considered an asset for five years, it's going to affect the pension and it could also affect the aged care costs.
Patty
So don't do it unless you're comfortable with the negative impact.
Kerri
Absolutely.
Patty
Carry if someone. Pays a lump sum, which I now. Know is a rat or a. Rack do we get?
Kerri
This money back 100% rads and racks are 100% government guaranteed. The only way that the balance of that money is going to reduce is if you ask for the fees. To be taken out of it. The balance is going to be refunded to the residents when they move out, so when they've passed away.
Patty
OK, if someone's been assessed as having to pay all these fees when their money reduces, will their status change over to government supported?
Kerri
Ohh that's a common mistake. Yes you can't. One cook a chook. So once you've been classified as being a concessional resident, you will always state that. But if you weren't, you're going to have to continue to pay the accommodation that you've agreed with the provider. The only way out of it is either moving out of aged care and being reassessed, or when your assets get low enough so that you've qualified for hardship.
Patty
Holy moly, this has been a lot for me to process. I'm more of an English person than a math person. I'm not fluent in mathematics like you. I feel like we need to reward you with some rapid fire wrap up questions. What's the most boring sport to watch for?
Kerri
You. Ohh. I'm not a PE person at all. All of sports. I'm an equal opportunist. I just like all of them. And they might even kick me. Out of the country, get.
Patty
Citizenship revoked. What's the best compliment that you have ever received?
Kerri
Ohh I was told I look like Kylie Minogue when I was a teenager. I'm only short 5, three or 163 in the metric.
Patty
And she's little as well. OK, what's the most useless skill that you possess?
Kerri
I can bore people talking about air fryers. Remember talking about.
Patty
Yeah, but that's not hang on a minute. You didn't create the air fryer, though.
Kerri
No.
Patty
But it's useless. How?
Kerri
Well, it's talking about it. I'm so excited about my rotisserie chicken and in there, so I'll talk about it to.
Patty
Anybody. Oh my goodness. So all these analogies of you can't uncook A chook now makes sense. Can you cook a chook?
Kerri
Hell yeah!
Patty
OK, what's the worst thing that a person can put on their a bio on a dating app?
Kerri
It's been a long time, but I was single for a long time and my favourite was “I hate it when people don't use good English.” {both laugh}
Patty
Kerri, that is a wrap and thank you so much for sharing your wisdom.
Kerri
Thank you, Patty. It's been such a pleasure.
Patty
So much knowledge to pack in one episode, and as I mentioned earlier, if taking notes got a little bit complex, you can always refer to our transcript and use it as a reference point.
We'll also be sure to include Kerri’s website in our bio and of course our show notes and if this was helpful to you or someone you know, please don't hesitate to like and subscribe. But if you could leave us a five star review, this ensures that we get to the people that need this information the most.
And if this is a journey that you've been navigating recently and you're finding difficult, we're sending you so much love. Know that we offer many workshops that can help you feel supported till next time. Take good care of yourself.
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Billy:
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