Financial Assessment for Long-Term Care in Quebec: Income Test and Asset Rules

When a parent enters a public CHSLD, intermediate resource, or family-type resource in Quebec, RAMQ runs a financial assessment to calculate their monthly room-and-board contribution. This isn't a pass/fail test — every resident pays something, and the assessment determines how much. Understanding what RAMQ counts and what it excludes is the difference between a manageable monthly bill and a number that devastates the family's finances.

What RAMQ Counts as Income

The assessment captures all sources of regular monthly income:

• Federal pensions: Old Age Security (OAS) and Guaranteed Income Supplement (GIS)
• Provincial pension: Quebec Pension Plan (QPP)
• Private pensions: Employer pension plans, annuities
• Registered withdrawals: RRIF minimum withdrawals and any RRSP redemptions
• Investment income: Interest, dividends, realized capital gains
• Rental income: Net rental income from any property

The calculation is monthly, based on the resident's income from the preceding month. This means income fluctuations — a one-time RRIF withdrawal, a capital gain from a stock sale — can spike a single month's contribution.

The Asset Test

RAMQ also evaluates the resident's asset base. This is where the system diverges most from what families expect.

Exempt assets (not counted):

• Principal residence equity up to $389,677 — but only if a spouse, dependent child, or certain relatives continue to live there
• One vehicle up to $10,000 in market value
• $2,500 in liquid assets for a single resident ($5,000 for a couple)
• $2,500 in real property/household goods for a single resident ($5,000 for a couple)
• Prepaid funeral arrangements (up to the industry standard limit)

Non-exempt assets (counted and penalized): Everything else. Additional savings accounts, TFSAs, non-registered investments, secondary properties, and vehicles beyond the first.

The penalty is severe: RAMQ applies an imputed income rate of 1% per month (12% annually) to all non-exempt assets above $40,000. A resident with $150,000 in applicable savings would have $1,100/month added to their calculated income ($150,000 − $40,000 = $110,000 × 1%), regardless of what the money actually earns. This single rule transforms a moderate retirement fund into a liability that pushes the monthly contribution toward the maximum.

Spousal Protections

The formula builds in protections for a non-accommodated spouse:

• Spousal income deduction: $1,512/month is automatically deducted from the calculation, ensuring the at-home spouse retains minimum support
• Principal residence exclusion: The home is protected while the spouse lives there
• Involuntary separation: Filing with Service Canada (forms ISP-3040 and ISP-3025) recalculates OAS/GIS as two individuals, often boosting the at-home spouse's income significantly

The involuntary-separation filing changes the federal OAS/GIS calculation to individual income. RAMQ continues to apply its own accommodation-contribution rules, including the spousal deduction described above.

What Common-Law Partners Need to Know

Quebec civil law recognizes de facto (common-law) spouses differently from married spouses in some contexts. For RAMQ's accommodation contribution, however, de facto spouses or de facto separation are not recognized for establishing the contribution without a legal separation or divorce decree.

The Assessment Timeline

1. Admission day: The facility registers the resident with RAMQ and notifies them of the maximum rate
2. Application filed: The family submits Form 3657/3807 with full financial documentation
3. RAMQ review: RAMQ reviews the submission
4. Notice of decision: RAMQ sends the calculated monthly rate, effective from the filing date
5. Retroactive adjustment: If the application was filed late, the reduction is not backdated — families pay the maximum rate for every month before the application date

This timeline creates real urgency. Filing Form 3657 on admission day versus filing three months later means three months at the full maximum rate, with no retroactive adjustment.

Our Quebec Long-Term Care Costs & Subsidies Guide includes a financial assessment preparation worksheet that lists every income source and asset category RAMQ evaluates, with calculation examples showing how the imputed income rule affects different savings levels.

See more Quebec guides →