What happens to the family home when a parent moves into aged care?
Answered byKevin FinnHead of LegalWatch · 0:39Families may keep, rent or sell the home when a parent moves into aged care. The choice affects accommodation funding, pension assessment and the estate plan. Selling a home specifically gifted in a Will can change how that gift operates. If a refundable accommodation deposit is paid, its remaining balance returns to the estate after death, less applicable retentions and agreed deductions. Seek aged care financial advice and review the Will before deciding.
For related guidance, see who makes decisions for you if you lose capacity and have no power of attorney?.
Read the video transcript
Moving to aged care requires a decision around the refundable accommodation deposit. Families must decide whether to retain, rent, or sell the family home. Renting impacts pension means testing. While selling converts real estate to money, altering how gifts in an existing Will operate. Further, refundable accommodation deposits return to the estate upon death, requiring clear executor planning.
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