Recently I got a frantic call from a man, his Mum’s health had taken a turn for the worst. Mum now needs permanent residential care…urgently of course!
The son asked if it would be possible for the care facility to put a caveat on the family home to pay for Mum’s care fees? As often happens, there are lots of property assets and not a lot of cash available, which meant he was stressed and grasping at straws to avoid selling a property.
I explained Government policy focuses on user-pays contributions, meaning cost of care is means tested. He was shocked, he’d been thinking only the family home would be included…but all assets would be included.
Mum’s ACAT (aged care assessment), the gate opener to aged care, was being done as we spoke. We won’t know the outcome or our options until the report is received in a few days; so we’re meeting next week, once the ACAT is available, to look at what care will cost and how to best fund it.
The family have complex financial structures, which have helped save a lot of tax over time, and quite a lot of assets.
We have to consider: a family trust, loans to the trust, gifted assets (a farm), a private company, an investment property, some cash and a family home with a massive value, so we can decide how best to fund the cost of Mum’s ongoing permanent aged care fees.
Understanding aged care fees isn’t simple. It can be hard on the nerves and can be even harder on the finances if you get it wrong.
Do you need help to understand the cost of aged care fees? Call Gayle on 0407159298, she’ll be happy to help you.