The financial aspects of aged care are confusing and overwhelming. Aged care is a complex area, and poor decisions could cost thousands or even tens of thousands of dollars. If you get the structuring of fee payments and assets wrong, your loved ones could lose their age pension, increase aged care costs and leave reduced assets for the Estate that could affect your whole family. They have worked hard their whole life and taken care of you, now it is your turn to take care of them.
So how do you do it? How do you negotiate the complexities of all the possible fee combinations:
– Basic daily care fee
– Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP)
– Refundable Accommodation Contribution (RAC) or Daily Accommodation Contribution (DAC)
– Mean tested fee
– Extra Service fee
When entering into aged care you may need to pay a variety of different fees depending on your chosen aged care service and your loved one’s assessable income and assets. An aged care financial adviser can help you to understand these fees and estimate the costs. They will also provide you with options on how to fund these costs in the best possible way to maximise age pension (where applicable), and minimise fees.
It is vital for you and everyone in your family to get these decisions right. If you are struggling to determine whether to sell or retain the family home, whether cash flow will meet expenses or you need help organising their estate so your loved ones can relax, then an aged care adviser will be able to assist you to get peace of mind, knowing everything is structured in the best way possible.
Helping someone to enter aged care is stressful enough without the financial complexities involved. Outsource the financial side to someone who knows what they are doing, and then focus on your loved one’s personal needs and the changes involved with peace of mind.
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.