A Christmas conversation that could help alleviate the complexities of Aged Care
By Chris Young
As we approach the end of another year many people will be looking forward to the festive season and the chance to catch up with family. This time of year can also be a time when adult children may also begin to notice changes in their ageing parents.
It can be confronting to accept that your parents who were once vital may soon need help to manage their day-to-day needs. Hard decisions may need to be made and many children and parents will need professional guidance to convert the mountain of data on aged care into meaningful and relevant information and ultimately into appropriate decisions.
Navigating this transition to aged care, including the financial obligations of aged care facilities, can be overwhelming and confusing to say the least. Everyone’s situation is different, which means there is no one-size-fits-all approach to this life stage.
The good news is, there are many financial solutions available for people undergoing this transition.
Talking through some of the options available with your parents now, may mean you save having these conversations at a time of stress and urgency.
As Advisers, we can help facilitate this conversation and answer some of the trickier questions around this topic.
It is our aim is to ensure that we maximise the existing resources of our clients to ensure they get the level of care they desire.
Common questions about paying for aged care
When it comes to funding aged care facilities, one question we are repeatedly asked by our clients is ‘Do we have to pay the lump sum refundable deposit to be accepted in our chosen aged care facility?’ The answer to this is no.
Some people may be in a position where they can sell existing investment assets to pay the lump sum deposit. Alternatively, they may choose to retain their investment assets and use the earnings to pay aged care facility costs in daily amounts as opposed to the lump sum.
Another commonly asked question is ‘Will I have to sell my home in order to move in to an aged care facility?’
For some people it may involve the sale of their home while others may choose to retain their home and make daily payments to the aged care facility.
What many people don't realise is that they can pay a daily equivalent amount, similar to paying rent, or a combination of the quoted lump sum and daily amounts.
There are a myriad of other financial considerations around this decision such as; depending on the way you structure the payment of your aged care facility deposit, it may have an impact on your potential age pension entitlements.
Obtaining customised advice to ascertain how you manage your financial transition to aged care can help relieve a lot of stress and complexity.
By being prepared and planning for this transition in advance, you will be in the best position to make the best financial decisions that are right for your situation.
Chris Young is a Financial Planner with Morgans Port Macquarie. Chris has a comprehensive range of financial planning skills that he uses to take the difficulty out of planning for your future. He specialises in aged care, retirement planning and personal risk protection advice.