Pensions Paying for Aged Care - What Happens to Loan?

[monarto]

I am 72 years of age, have severe Parkinson's disease, am a Viet Vet, and have no income or assets. I have a house shared with my wife. We are separating. I am going through the process of entering an aged care facility. My wife's wages precluded me from having a pension but once the separation goes through I receive a service pension. I do have an existing small disability support pension. These two pensions will pay for the facility.

My wife will retain the house.

In or around 2005, I borrowed $50.000 Equity Access Loan with the house as security. I have paid the monthly interest rate from my wife's carers allowance.

Now that I have to pay the aged care facility I have no cash to pay this loan or interest on the loan any longer.

What can I do?

 

[Sophea]

Is the loan solely in your name? If the house is still security for the loan then ultimately if you don't pay it they can take the house and sell it. Have you negotiated with your wife that she will get the house? Has this title transfer been done yet?