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Aged Care
Financial
Advice

Get the best care for your loved one, make informed decisions and gain peace of mind.

Aged Care Financial Advice
Aged Care Financial Advice

Make informed financial aged care decisions for your loved one

The difference between the best decision and the worst decision can add up to as much as $100,000 over five years.

Transitioning a loved one into aged care is an emotional and stressful time. The process can be complex and confusing. We can help you and other family members with the process, to ensure appropriate, and considered decisions are made for the care of your loved one and their estate.

We can help you answer questions like:

Should we sell the house?
How can we afford care?
What is a RAD and ACAT?
How should we pay for the care?
Where is the best place for my loved one?
How do I complete an income and asset test?

Contact us to discuss your options. Even if your loved one is already in aged care, we can help you to ensure that their finances and estate are in order.

Achieve the best care for your loved one, gain peace of mind

Our Aged Care Specialist Adviser, Gary Watson, can help you navigate and complete all steps in the aged care process. Gary will help liaise with Centrelink and give advice on existing investments and estate planning. He will provide guidance on questions like:

How to structure and minimise fees to maximise entitlements?
What are the implications of selling or rent the family home?
Where is the best place for my loved one?
How can we afford to pay for care?
What is a RAD and ACAT?
How do we complete an income and asset test?

Aged care costs are complex and expensive, particularly if the wrong strategy is adopted. By making informed decisions, our clients can have some certainty that their assets and lifelong savings are not unnecessarily diminished by excessive charges or failure to fully access entitlements. Aged care financial management can generally save thousands of dollars. The difference between the best decision and the worst decision can add up to as much as $100,000 over 5 years.

The Aged Care Process

Our goal is to make a difficult and emotional process easier for you and your family to navigate.

Step 1 – Complimentary 30 min Initial Phone Meeting

The start of the aged care advice process is a free, no obligation 30-minute phone discussion to ascertain the extent of advice you need and determine a cost estimate. This is an opportunity for us to get to know your circumstances and provide general advice on the process.

Step 2 – Complete an Online Aged Care Questionnaire

This is a critical step in the process. One of the biggest challenges with aged care advice is collating all the required documentation as those seeking the advice (usually the children) often require time to locate the required information (of their parents). This questionnaire helps step you through the process to make sure that nothing is missed.

Step 3 – Review of Questionnaire and Documentation

Once we have received the completed questionnaire and related documentation, we will review it and make sure nothing is outstanding. You will then have a follow up discussion with our Aged Care Specialist either over the phone or in person.

Step 4 – Strategy Paper Preparation

Preparation of a comprehensive aged care strategy paper specific to your circumstances which could include:

Review of current financial situation for the purpose of funding the aged care costs.
Analysis and verification of aged care accommodation costs (the document compares up to five accommodation funding options).
Modelling the impact of concessions for the family home.
Strategies regarding the family home and investment portfolio (including, if applicable, exiting a Retirement Village).
Where applicable – financial advice regarding the redemption of investments / sale of property to fund costs and resettlement of portfolio.
Advice on strategies to fund the basic daily fee, means tested fee and additional or extra daily costs.
Detailed cash flows over five years, taking into account available tax offsets and Centrelink exemptions.
Projection of future asset values for beneficiaries.
Your rights under the Aged Care Act and the aged care facility’s Residential Agreement.
Application of the Aged Care and Social Security provisions.

Step 5 – Presentation of Strategy Paper

We will meet with you to present the recommendations in the strategy paper, answer questions and discuss any associated issues.

Step 6 – Preparation of Centrelink Application(s) for your Submission

If required, we will support you with the preparation and completion of the many complex documents required for Centrelink and Aged Care applications for your submission.

Fees

There is no charge for your initial obligation free, 30-minute discussion.
Then our advice is fee-for-service, based on the time taken to provide the advice you require.
As a guide, if the returned questionnaire is complete, the initial/presentation meetings and preparation of the strategy paper will take approximately 2.5 – 5 hours.
Our Aged Care Specialist hourly rate is currently $330 (including GST).

Case Study

Martin is 83, he saved over $14,000 in one year, after seeking professional advice.

Martin has lived independently, at his family home since his wife, Sonia, of 55 years passed away, over three years ago. Martin has a daughter, Susan. After Sonia’s passing Martin decided to appoint Susan his Enduring Power of Attorney and Enduring Guardianship.

Unfortunately, Martin has recently had a fall and broken his hip and now needs to transition, as a permanent resident, into an aged care facility.

Martin owns the family home in Mayfield. Its current market value is $530,000 and he has $200,000 in bank savings. Martin is entitled to the Age Pension. He receives $926.20 per fortnight.

Susan has located an aged care home, at Waratah, that she thinks it will be suitable for Martin. The Refundable Accommodation Deposit (RAD) is $375,000. This amount can be paid in full or in part. Susan will be able to enter the residential agreement on behalf of Martin, in her capacity as his Attorney. Also, as Martin’s Guardian, she can be involved in developing his care plan and ongoing medical support.

Both Martin and Susan would prefer not to sell the family home. However, before getting financial advice, they believed there was no other option. Susan expects the net proceeds of the sale will be approximately $510,000 and thought they would invest the balance, after paying the RAD to pay ongoing costs.

Option 1 – Sell House

Before seeking advice, Susan planned to sell the home, and place any residual proceeds in Martin’s bank account to fund ongoing fees.

By selling the house, Martin’s assessable assets under Centrelink would be increased.
This would result in a reduced pension (from $926.20 pf to $562.57).
Martin would also be required to pay more for his age care costs.
Martin’s total assets would be reduced from $710,00 to $667,903 within five years.

Option 2 – Retain and Rent House

After seeking advice from us, we recommended that the house be rented.

By renting the house, Martin will receive over $23,000 in rental income to supplement his income and pay for his aged care costs.
This will income will offset the resultant reduction of $9,454 in the age pension
Furthermore, Martin’s assets, over a five-year period, would grow from $710,000 to over $739,000.

The recommendations would have left Martin $71,097 (or approx. $14,000 pa) better off, over the same five-year period.

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