Aged Care Advice
Understandably, most people want to stay in their own home for as long as possible because it is familiar and comfortable. The thought of going into an aged care facility is traumatic. If someone you care about is no longer able to manage at home on their own but is fortunate enough to have assistance with everyday tasks such as shopping, cooking and transport to medical appointments, they may be able to stay in their home longer. They may even be eligible for Government-subsidised home care.
However, if they are unable to manage in their home, you may need to help them transition into an aged care facility.
What comes next?
You can arrange for an ACAT Assessment to determine the level of care required and the facilities that can provide this level of care. An ACAT assessment is a prerequisite to entering Aged Care. We can help you with the ACAT assessment.
Once you have chosen a facility you will need to work out the finances with the assistance of a professional financial adviser who can look at the value of the family home and other assets and explain how various fees work.
A financial adviser can also look at any Centrelink benefits that are available and determine whether you are eligible.
Once the decision is made, a financial adviser can assist you with the application documents to help you secure a place in your preferred aged care facility.
Types of Care
There are different levels of care appropriate for different people. An Aged Care Assessment can help you determine. It is important to be clear on what services are provided by the ones of your choice and what the costs may be.
Costs
Each resident entering a permanent residential facility will incur a standard resident contribution fee to cover basic daily care. Fees such as the means-tested care fee, accommodation payments (or accommodation contribution ), and additional fees for extra services need to be considered. The cost will largely be determined by the level of care provided.
We can work with you and explain the costs based on your circumstances and the type of facility you are applying to.
What about the family home?
The decision on whether or not to sell the family home to enter an aged care facility can be one of the most significant and most emotional decisions you will ever make. Many years of memories are tied up in your home and selling it is the final step in leaving your life behind to enter an aged care facility.
As financial advisers, we want to help our clients to make the best decision possible in relation to keeping or selling the family home. The decision depends on the specific client's circumstances. Are both partners still alive? What is the age difference between partners?, will both clients be going into care or only one?, do you have enough other funds to cover the cost of Care? All these issues and more need to be taken into account. Our role is to help you make the best financial and emotional decision possible, to ease some of the emotional burden.
What you choose to do with the family home will also impact fee assessments and Centrelink entitlements. We can determine whether or not the family home is counted as an asset in the assets test by examining who lives in the home and whether they are classed as protected persons, eligible dependents, or carers. This can impact the asset test and whether or not the home is sold.
The Age Pension
If you move into an aged care facility without selling your home, it will generally be exempt from the age pension assets test for two years from the date you move into care. This date may vary if you are, or were, a couple at the time you moved into aged care.
Whilst it is never too late to have this discussion, we recommend having it before a facility is required so you have time to consider the options rather than being caught out if a quick decision needs to be made.
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