These Aged Care frequently asked questions will help provide some answers, however if we can help you further, please contact our Aged Care Professional, Jeanette O’Connor, for more information if you or a family member is considering moving into an Aged Care Facility. Helpful, related links on Aged Care also appear at the end of this story.
1. What upfront costs will I need to pay?
What do I need to do?
Understand if there is an accommodation payment payable and determine what assets you can use to meet the cost.
How an adviser can help
Your adviser can help you determine how to pay for your accommodation. This may involve a lump sum payment, regular instalments or a combination of both.
Who else can help?
The Department of Human Services (Centrelink) assesses your income and assets.
2. How much will I pay for ongoing care?
What do I need to do?
Determine which ongoing fees apply to you. This could include the basic daily fee, a means-tested care fee and any extra service fee.
How an adviser can help
There are strategies to minimise the fees you pay. Keeping or selling your home often forms part of the strategy as does how you invest. A poorly executed plan can result in a lower Age Pension and higher fees.
Who else can help?
The aged care facility and Centrelink can assist in determining your fees.
3. Can I keep my home or is it better for me to sell it?
What do I need to do?
Understand the various options and strategies available to you regarding your primary residence.
Your adviser can help
Your adviser can help you decide if it is best to keep or sell the family home. If kept, they can determine the best way to structure the accommodation payment to ensure the family home does not affect your Centrelink tests. If sold, they can also help with the best way to invest the proceeds and get the balance right between generating an income, maximising the Age Pension and minimising aged care fees.
Who else can help?
Your financial adviser can assist you to understand your options.
4. How do I maximise my social security benefits?
What do I need to do?
Determine how the social security Income and Asset tests apply to you.
How an adviser can help
Your choice of investments may help you to access or retain benefits, including the Commonwealth Seniors Health Card. The decisions you make regarding your home can also result in a lower Age Pension.
Who else can help?
Centrelink determines your eligibility for Government benefits.
5. How can I afford to pay for ongoing care?
What do I need to do?
Determine if your capital can be invested to provide enough cash flow to meet ongoing care costs.
How an adviser can help
Your financial adviser can assess your investment options and help you maximise your income.
Who else can help?
Your financial adviser is best placed to help you understand your options
6. Will I have something to leave for my family?
What do I need to do?
Identify which of your assets can be included in your estate and the best way to do so.
How an adviser can help
Your financial adviser can help identify what assets can be left to your estate.
Who else can help
Your lawyer can ensure you have a will that reflects your wishes.
7. How much tax will I need to pay?
What do I need to do?
Identify what tax offsets are available and which apply to you. You also need to be aware of any issues that may arise if you sell your home or change your investments.
Your adviser can help
An overall review of your situation will identify the various tax offsets that may be available to you, including the low income, seniors and net medical expense offsets.
A tax adviser can also flag issues concerning land tax and capital gains tax that may affect you.
Who else can help?
A tax adviser is best placed to advise on your tax position.
Further information
If you would like to meet with our Aged Care Professional, Jeanette O’Connor, please email or call her on (02) 4455 5333.
