What to do with the family home?
As with most matters aged care, decisions about the family home must be made with both the heart and the head. Of course that assumes you have the choice to retain your home.
Many clients I advise need to sell their home to finance their move into care.
So if you had the choice, why would you not want to sell?
Some of what my clients say from the heart is: "It's where I raised my children, my husband built this home for us, too many wonderful memories, all our pets are buried in the garden, they'll just knock it down…"
And when I point out the significant financial benefits that renting the home can offer, my clients' heartfelt wish to retain their home is validated.
Benefits of renting
So exactly what are the benefits in renting out your home?
It’s all about how Centrelink assess the value of your home and any rent you may receive from it.
Even if you are self-funded don't think the mention of Centrelink means it's not relevant to you and how your aged care fees are calculated.
If you rent your home and are paying for your accommodation at least in part by way of a daily payment, the rent from your home is exempt from the calculation to determine your means tested care fee.
Plus, your home is exempt indefinitely from the age pension asset test and the rent is also not assessed.
Whether you are already in care, or planning a move into an aged care service and are unsure about what to do with the family home, talk to a financial adviser who specialises in aged care advice.
Contact David Codey (pictured above) from the Morgans Aged Care Advice Team on:
Alternatively contact your Morgans adviser
or your nearest Morgans office
to find out more.