VEA ? [2]
When a Home Equity Access Scheme (HEAS) participant dies, the loan under the scheme is usually recovered from their estate.
If a pensioner with a Home Equity Aceess Scheme loan dies and... | Then... |
there is no surviving partner, | DVA [3] usually enforces the charge on the property used as security and recovers the loan immediately as a lump sum. |
there is a surviving partner entitled to loan payments but who does not wish to continue receiving them, | that person may choose to repay the loan at any time by making repayments or by withholding an amount from any pension entitlement. |
there is a surviving partner entitled to loan payments and wishes to continue receiving them, | Payments will continue and recovery of the loan is deferred until the death of the surviving partner. |
there is a surviving partner who is not entitled to receive Home Equity Access Scheme payments (for example they are below the pension age) | the loan may be recovered after the bereavement period [3]. More ? [4]
Note: In this case, discretion exists to phase, delay or accept partial recovery where the family home is involved. |
VEA ? [5]
The restrictions on the recovery of a loan are shown in the table below.
If a member of the couple dies and the partner... | Then... |
receives bereavement payment | the loan may be recovered after the last day on which a bereavement payment is payable. More ? [6]
|
is over veteran pension age and has use of all or part of the assets subject to the charge | the loan may be recovered after the death of the partner. |
Where the amount of the loan is recovered from a person's estate, it is expected that the full amount of the loan should normally be repaid by the executor of the estate as a lump sum. However, the manner of recovery can be negotiated between the Commission and the executor.
The Department of Veterans' Affairs.
Bereavement period, as defined in section 53H of VEA [13], in relation to a person's death, means the period of 98 days starting on the day on which the person died.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16251%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16251#tgt-cspol_part5_ftn108
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/book/export/html/16251#tgt-cspol_part5_ftn109
[5] https://clik.dva.gov.au/book/export/html/16251#tgt-cspol_part5_ftn110
[6] https://clik.dva.gov.au/book/export/html/16251#tgt-cspol_part5_ftn111
[7] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[8] https://clik.dva.gov.au/book/export/html/16251#ref-cspol_part5_ftn108
[9] https://clik.dva.gov.au/compensation-and-support-policy-library/part-8-bereavement-assistance
[10] https://clik.dva.gov.au/book/export/html/16251#ref-cspol_part5_ftn109
[11] https://clik.dva.gov.au/book/export/html/16251#ref-cspol_part5_ftn110
[12] https://clik.dva.gov.au/book/export/html/16251#ref-cspol_part5_ftn111
[13] http://www.comlaw.gov.au/Series/C2004A03268