Decisions over aged care for loved ones can be an emotional draining experience - and that's before the additional stress associated with the costs of funding the aged care and the complexity of the social security system. So it pays to get well rounded advice and the key is to plan ahead as your loved one's circumstances can change quickly.
Depending on whether you or your loved ones decide on a hostel, nursing home etc, the high costs and complex financing options for retirement and aged care facilities means many issues need careful planning including:
Aged care costs - what are the entry fees (including accommodation bond and accommodation charges) and ongoing costs (including basic daily care fees, income tested fees and extra service charges) of residential care?
How can these be funded effectively to most suit your needs?
How does the aged care rules interact with the social security rules?
The family home - will someone still be living there? Should it be sold? Should it be rented out? Is a reverse mortgage appropriate?
Social Security - how can you maximise your Age Pension entitlement by structuring your assets in the right way?
Tax - what special tax offsets may be available when living in residential aged care?
Estate planning - have you or your loved ones sorted out the Power of Attorney or Enduring Guardianship?
Aged care is a complex area. There is much to be considered and it is important to ensure you get the right balance between your assets, the cost of aged care, and the impact on your Age Pension entitlement.
At Nexia, we help you answer these questions and explain how they will impact you.
Alternatively please contact our aged care specialist - Sylvia Liang.
