If you are assisting someone you love to plan for the aged care phase of their life, the best advice is plan earlier rather than later.
Planning for aged care should begin when aged care is imminent.
Decisions relating to lifestyle and expenditure, as well as accommodation choices can affect the options available when care is required.
Many professionals in the Aged Care Financial Planning industry believe that planning for aged care should begin around 5 years prior to the likelihood of a requirement for aged care.
It is also likely that you will need professional financial assistance to understand the aged care options and the requirements of legislation that changed from July 1 2014 that include income tested fees that are now means tested on both income and assets.
A financial advisor can assist you by offering options for restructuring financial affairs and suggesting appropriate solutions for meeting Aged Care fees as required. As Centrelink payments could be affected, alternative arrangements can be recommend so that the income and assets can be assessed more favourably under the Centrelink Age Pension tests and your aging relatives or those you care for may be able to retain their pension.
Individual circumstances will determine the most suitable outcome from the options available. Some may prefer to remain in their own home, while others may need more specialised care. Most certainly, discussions will include options for the principal home, social security, tax and estate planning and aged care expenditure.
It can be a confusing and emotional time when confronted with the decisions for aged or disabled relatives. The focus is to find the most appropriate care and financial solution.
If you would like to find out more about planning beyond your retirement, contact us today.