Most of us will at some point be faced with difficult decisions regarding aged care either personally or for a family member. Entry into a Residential Aged Care Facility can have a very significant impact both emotionally and financially.
The most important thing is to have a well-considered plan before the need to find an aged care facility. For those thinking they may require aged care in the future, it is wise to review your situation to determine the impact aged care would have on you and your loved ones. For those who are carers of a family member who may require aged care in the future it is also wise to review their situation to determine the impact aged care would have on them as well as their loved ones.
The types of aged care facilities include community aged care packages which provides local government support to those still able to live in the family home, independent living accommodation such as retirement villages, and Residential Aged Care for those requiring ongoing low level of high level care.
The various costs of Residential Aged Care differ significantly between facilities as well as between residents. With specialised aged care advice these costs can be managed to ensure that the financial impact on the aged care resident and their family is minimised and their goals and wishes achieved.
Aged care planning strategies
There are a number of issues that need to be reviewed and considered some of which may not be so obvious. Issues may include:
Whether to retain or sell the family home to cover the cost of entry:
- Reducing the daily aged care costs;
- Optimising social security benefits;
- Invest remaining assets tax-efficiently; and
- review the estate plans of the new resident given their circumstances would most certainly have changed.
For example, entry into an aged care residence is often based on the need to sell the family home in order to fund the accommodation bond (cost of entry). If the family home is to be retained, there may be significant benefits by renting it out and negotiating with the residential aged care facility to pay part of the accommodation bond by lump sum and the remainder via periodic installments.
Your Godfrey Pembroke adviser is supported by the research capabilities of the Godfrey Pembroke network and the wider MLC group, so they are ideally positioned to help you navigate an increasingly complex regulatory landscape. We also work closely with your other professional advisers, such as your solicitor, to help ensure you enjoy the best possible outcomes.