Do you need to sell the family home to afford aged care?

March 3, 2016 BY

There is never an easy time to be looking into the aged care needs of a loved one and the transition can be emotionally taxing.

You may have heard about some of the substantial fees associated with aged care. Understandably, you will likely look to the incoming resident’s biggest asset to fund this transition; the family home.

You will be relieved to know that selling the family home may not be the answer. Analysis of the to alternative options for funding the transition into an aged care facility, with consideration to: the ongoing Centrelink impacts of the selling the home  ongoing nursing home fees, and  the income needs of the resident.

On July 1, 2014, significant changes were made to the calculation of Aged Care fees and the assessment of assets, including the family home.

If the family home is sold, then the net sale proceeds are counted towards the Centrelink asset and income assessments, which may result in a higher Means Tested Fee payable to the Aged Care facility.

The new calculations may allow you to keep the home and pay the fees via other assets, or even pay a part Refundable Accommodation Deposit (RAD) and pay the remainder via a Daily Accommodation Payment (DAP). advisor early. Our aged care specialists can an appropriate strategy to help you make these decisions.

This will include advice on how to structure assets to pay for accommodation as well as create To learn more about aged care fees and payment options, download our Aged Care Fact Sheet, or attend our free Aged Care seminar on March 18 at Crowe Horwath Principal – Financial Advice Damian McVilly.