Author: Janelle Kirk When we are kids, most of us get taught about the basics…
Why Aged Care financial advice is essential
If you or someone you care about is transitioning into Aged Care, you are likely considering what to do with the family home.
As Australia’s aging population continues to increase, more and more people are moving into Aged Care and recognizing the complexities and the challenging decisions surrounding the process.
On top of the many Aged Care and financial decisions you make during this time, one of the most important is what to do with your family home.
By the time you retire, your house is likely one of your biggest assets.
However, if you are considering moving into residential aged care, you won’t necessarily need your home anymore.
So, should you sell it? Should you rent it out? Or maybe a different avenue is for you to move into a new house that is better receptive to your changing mobility and other needs and delay aged care?
As you grow older, your existing house may not be safe or convenient for you anymore. It could have inaccessible, narrow areas or too many stairs, or maybe it’s just too big!
Either way, part of the Aged Care process requires you to decide whether to sell or keep.
Should you sell or keep the family home?
If you are moving into Aged Care, you may be thinking of selling your home to pay for the bond/RAD (Refundable Accommodation Deposit).
Or maybe you’re thinking of renting your home out to help you pay for the ongoing costs?
The choice you make with your property can affect your pension, tax, and care fees. It is important to consider the financial and tax implications.
According to ASIC (Australian Securities & Investments Commission), here are some things you should consider when making the decision about your home1.
If you sell your home…
Its value will count towards the Age Pension assets test.
If you rent out your home…
Its value may count towards the Age Pension test depending on when you moved into aged care.
If you keep your home without renting it out…
It is exempt from the Age Pension assets test for 2 years from the date you moved into aged care.
It’s important to note that the table above is only a general guide – a certified and registered Aged Care Financial Adviser can help you determine what the detailed implication are for your situation.
Transitioning into Aged Care can be a stressful, expensive process. It is important to take the time to consider your options and seek professional financial advice for your financial decisions.
How can a Certified Aged Care Specialist / Financial Adviser help?
Aged Care costs and decisions can be difficult to navigate. Whether it is for you or a family member transitioning into aged care, it can be an emotional and challenging process, not to mention confusing and time-consuming.
Aside from helping you decide on your decision with the family home, a financial adviser with Aged Care experience and specialization can assist you by:
- Providing strategies to fund your accommodation
- Providing you with care options and explain the financial implications of your choices
- Maximizing your government pensions
- Negotiating with aged care facilities to minimize your nursing home fees
- Reviewing and planning for tax implications
- Support you to make informed aged care decisions
Are you looking to engage a Specialist Aged Care Financial Adviser to help with the transition and financial impacts of Aged Care?
At CCFPG, two of our financial advisers are extremely experienced and passionate about helping Central Coast residents transition smoothly into Aged Care.
If you are seeking aged care financial advice, book an appointment with Rosie or Janelle. Your initial meeting is complimentary so that we can get to know you and your family, understand your goals, and create the best, most personalised plan to suit your needs in your golden years.
The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group and Sydney Wealth Advisers are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.