The short answer is “maybe” but it is more likely to be “no”. The real answer is “It depends……”
There is usually a lump sum payment required when entering an aged care facility. It is called a Refundable Accommodation Deposit (RAD). This lump sum payment can be up to $550,000 for Government approved facilities.
You can search for a preferred facility from http://www.myagedcare.gov.au website to determine the possible lump sum payment amount.
But before you panic and wonder how you are going to possibly put your parents in care when they need it, consider the following:
What happens if I don’t want to sell the family home?
Don’t worry, there are other options for you to consider:
– Sell other assets
– Use a “reverse mortgage” to release equity from the family home
– Obtain a loan
– Pay as a Daily Accommodation Payment (DAP)
– Pay a combination of RAD and DAP
– Deduct DAP from RAD if there is a struggle with cash-flow
Clearly there can be many options to pay for Aged Care costs without having to sell the family home but which is the best option for your family’s circumstances?
The decision to sell or retain the family home is not only based on funding aged care costs but also needs to consider factors such as:
– its condition to be placed on the market for sale
– its condition for renting if you want to keep it
– who else is living in the home or wants to live in the home
– personal attachment the family has to the home
– Is it affecting your parent’s Centrelink or DVA payment?
– Is it affecting the aged care mean tested fee?
The complexity of the aged care world is staggering.
Getting accurate information and advice now will help you make the best choices for your loved ones’ future care, security and happiness.
Paying for advice in this complex area could save you and your family many thousands of dollars and an awful lot of stress, so act now and let Aged Care advice experts with specialist qualifications sort it out for you, so you can take care of your family.
Lina Ngan Bui
CERTIFIED FINANCIAL PLANNER®
B.Bus (Fin. Plan)
Accredited Aged Care ProfessionalTM
Authorised Representative No. 1001079
This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.