When the time comes to help a loved one into an aged care facility, it can be confusing and emotionally challenging for everyone involved.
You know you want the best care, but the practical issues also need to be considered:
- Is the preferred aged care facility affordable in both the short and long term?
- Will the choices you make now impact on pension entitlements?
- Will the family home need to be sold to obtain capital to pay for aged care?
Understanding the true cost of aged care
It’s important to ensure you know all the facts and take some time to plan to make sure you make the right decisions at this challenging time. We can meet with you to formulate a plan that considers all of your aged care funding options.
Our plan incorporates:
- payment options for the upfront accommodation payment
- the applicable daily care fees
- the calculation of Means Tested Fees
- minimising these costs and charges where possible
- planning to make care affordable in both the short and long term.
Key reforms to Australia’s aged care system affected new residents entering residential aged care from 1 July 2014.
An important change for these residents was a new set of rules for the calculation of accommodation payments and ongoing care fees and charges. For many residents, the new system was a more ‘user pays’ system where fees are determined by both an income and assets test.
As your financial adviser, we can review your parents’ situation and provide advice on a range of areas including a comparison of the level of fees and charges payable.
We can also assist by explaining the various aged care options and provide advice on a range of areas including:
- accommodation payments
- minimising fees and charges
- maintaining the Age Pension and other social security entitlements
- implications of keeping or selling the family home
- structuring income and assets to meet the ongoing costs of aged care
- the potential taxation implications of different aged care options and decisions
- estate planning needs such as Wills and Powers of Attorney.
It’s important to consider the options and commence the planning process early so that decisions do not need to be made under stressful conditions. If you would like to discuss your parents’ situation, please contact us +61 8 6315 2700 or, if you would prefer, you can submit the form below and we will contact you.