Aged Care Financial Planning Advice

Supporting & guiding you through unfamiliar territory

The decision to transition a family member into an aged care facility is one of the hardest you’ll ever have to make. The process is made even more difficult by the complex and foreign financial landscape that needs to be navigated.

Government legislations around accommodation payments, daily care fees, means tested fees, government benefits, maintaining the family home for the spouse remaining at home – with so much to consider its important you seek the support of your financial planner.

At Blenkhorn Financial Planning we’ve helped many clients navigate this journey. This often includes helping you understand and make the best choices on:

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Facility Fee’s:

This can include a daily care fee, an extra service fee and an income tested fee, which is based on the person’s income.

Payment Options:

There are three main payment options: a refundable  accommodation deposit -RAD or a  daily accommodation payment -DAP or a combination of these two; a means tested fee -MTF which is determined by your assets and income and a basic daily fee. There is also the possibly an additional service fee in some facilities that pays for luxuries. The choice the individual makes about which funding option is right for them will depend on their financial circumstances. We will discuss your options for funding the accommodation payment and structuring of finances including cash flow advice, as well as information on government benefits and minimising means tested fees.

Structuring the Right Finances for the Spouse:

A key thing to remember is that when families are considering the right care for elderly parents, it is rare for both people to need to go into care accommodation at the same time. With this comes a series of financial considerations – household bills need to be paid and the family home needs to be maintained. Often, families are working and busy with their own children, and there is an emotional price to pay for having to ensure mum or dad are ok.

The Right Choice with the Family Home:

The existing family home can be an added complexity in these decisions. Is it better to sell it or rent it out? Each situation is different and will have a different outcome. The primary residence is generally not considered as part of the asset pool for financial assessment when moving into care. And in certain circumstance the income generated from renting the home may not be included in the income assessment test. Therefore it’s critical to seek financial advice before selling the family home.

Finding the right facility, that best suits your family and finances, is critical. There are three important financial steps to consider when making that decision which we can help guide you through:

 

 

1. What will it take to be offered a place?
2. Can the person afford these payments?
3. Does the fee represent value for money?