14 minute read
Financial advice
Expert financial advice imperative At a time when your main concern is the health and welfare of loved ones, you are faced with the complex financial issues of aged care.
The financial decisions surrounding aged care may be overwhelming, due to the different funding mechanisms that apply to nursing homes and ‘Extra Service’ facilities. These can be further complicated by the impact that a move to care has in terms of the pension paid by Centrelink and the fact that the family home is treated differently for pension purposes than for aged care purposes. Just getting a basic understanding of what forms you need to complete, when to complete them and where to send them, can be a difficult path to navigate. Paying for your care You then need to consider important issues such as how to pay for any accommodation payment, whether to sell the family home or rent it out, how to maximise or keep the pension, all at a time when your main concern is finding a suitable place for your loved one to receive the care they need.
WA Aged Care Financial Solutions continues to deliver...
Support and understanding from experts in Aged Care financial matters Advice on secure investments and estate planning needs such as Wills and Powers of Attorney
Peace of mind through a specialised financial plan for Aged Care complete with recommendations for the best possible financial solution Implementation of your financial plan Ongoing assistance dealing with
Government and other institutions
THE CHOSEN ONES YEAR AFTER YEAR
Selected by Aged & Community Services Australia year after year as its financial planning partner for Aged Care residents and Home Care recipients.
Aged CareWA Financial Solutions
1300 827 229
info@agedcarefswa.com www.agedcarefswa.com Unit 1, Wembley Green Offices 61 Flynn Street, Wembley WA 6014
Financial advice
By understanding the rules and being able to apply them to individual circumstances, financial advisors are able to save their clients thousands of dollars. How an expert can help The best financial strategies and options will depend on your specific circumstances, objectives and situation. A specialist aged care financial advisor can cut through the vast amount of information available and make sure that all aspects of your financial situation are addressed – the family home, accommodation payments and care fees, cash flow and investment planning. This will enable you to concentrate on finding the best place for care. A financial advisor can help you focus on the information and issues that are important to you and your specific financial situation. While every situation is different, there are some common elements of aged care financial advice which professional consultants often provide to their clients. Some of these elements include: Strategies to fund accommodation payments Financial modelling of multiple care options Review and planning of tax implications Maximising Government pensions Minimising nursing home fees Negotiating with aged care facilities
Unique placement & Unique placement & fi nancial services as individual as you are. fi nancial services as individual as you are. Unique placement & fi nancial services as individual as you are. Unique placement & fi nancial services as individual as you are.
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Call our team on 08 6143 2565Call our team on 08 6143 2565GET IN TOUCH GET IN TOUCH Email your enquiry to info@relacs.net.auEmail your enquiry to info@relacs.net.auCall our team on 08 6143 2565Call our team on 08 6143 2565 Visit our website at www.relacs.net.auVisit our website at www.relacs.net.auEmail your enquiry to info@relacs.net.auEmail your enquiry to info@relacs.net.au Visit our website at www.relacs.net.auVisit our website at www.relacs.net.au
See yourself happy
See yourself happySee yourself happy PLACEMENT JOURNEY FINANCIAL COMFORTSee yourself happy
PLACEMENT JOURNEY Your health requirements and desired living arrangements are our fi rst priority. We shortlist and liaise directly with suitable premises on your behalf giving you time for what’s important to you. You are not alone. From the fi rst visit, through application and settlement, until the day you move in, we are here. FINANCIAL COMFORT You can relax when you understand aged care fees and what you can afford. There are many ways to pay for your care. Let’s fi nd the best approach for you. We can structure your Aged Pension to help you make the most of it. We’ll complete your Income and Asset Assessment for you. PLACEMENT JOURNEY Your health requirements and desired living arrangements are our first priority. We shortlist and liaise directly with suitable premises on your behalf giving you time for what’s important to you. You are not alone. From the first visit, through application and settlement, until the day you move in, we are here. FINANCIAL COMFORT You can relax when you understand aged care fees and what you can afford. There are many ways to pay for your care. Let’s find the best approach for you. We will consider your Aged Pension and help you maximise it. We can complete Centrelink paperwork for you regarding your move into care. Your health requirements and desired living arrangements are our fi rst priority. We shortlist and liaise directly with suitable premises on your behalf giving you time for what’s important to you. You are not alone. From the fi rst visit, through application and settlement, until the day you move in, we are here. You can relax when you understand aged care fees and what you can afford. There are many ways to pay for your care. Let’s fi nd the best approach for you. We can structure your Aged Pension to help you make the most of it. We’ll complete your Income and Asset Assessment for you. PLACEMENT JOURNEY Your health requirements and desired living arrangements are our fi rst priority. We shortlist and liaise directly with suitable premises on your behalf giving you time for what’s important to you. You are not alone. From the fi rst visit, through application and settlement, until the day FINANCIAL COMFORT You can relax when you understand aged care fees and what you can afford. There are many ways to pay for your care. Let’s fi nd the best approach for you. We can structure your Aged Pension to help you make the most of it. We’ll complete your Income PLACEMENT JOURNEY Your health requirements and desired living arrangements are our fi rst priority. We shortlist and liaise directly with suitable premises on your behalf giving you time for what’s important to you. You are not alone. From the fi rst visit, through application and settlement, until the day FINANCIAL COMFORT You can relax when you understand aged care fees and what you can afford. There are many ways to pay for your care. Let’s fi nd the best approach for you. We can structure your Aged Pension to help you make the most of it. We’ll complete your Income Get the support and clarity you need during an emotional and stressful time. As Financial Advisors we have you covered however tricky your fi nancial situation. Get the support and clarity you need during an emotional and stressful time. As Financial Advisors we have you covered however tricky your financial situation. Get the support and clarity you need during an emotional and stressful time. As Financial Advisors we have you covered however tricky your fi nancial situation. you move in, we are here. Get the support and clarity you need during an and Asset Assessment for you. As Financial Advisors we have you covered however you move in, we are here. Get the support and clarity you need during an emotional and stressful time. and Asset Assessment for you. As Financial Advisors we have you covered however tricky your fi nancial situation. emotional and stressful time. tricky your fi nancial situation.
Keep in mind, not all financial advisors are experienced in dealing with the financial complexity of entering into aged care. Important questions to ask Some important questions you should ask before engaging the services of a financial advisor include: Do they specialise in dealing with aged care financial issues? What experience do they have in aged care financial issues? Will they provide you with an outline of all your options? Will they provide their advice in ‘plain English’? Will their advice be in writing? Will they deal with Department of Veterans’ Affairs or Centerlink on your behalf? Is the service a once-off or an ongoing service? What will it cost? Generally financial advisors charge a fee to help you with strategies to fund your aged care journey. Fees will vary and it pays to contact a number of experts for a quote on their services so you can compare. Financial counselling If you’re experiencing financial difficulties and have little income, you may be able to receive free financial counselling services to help you work through this.
Aged Care Financial Advice Specialists
Financial advice
Aged care choices are complex and the decisions to be made can seem overwhelming. Making the wrong decisions can come at a high price, both emotionally and financially.
Our aged care advisors specialise in identifying your unique needs and the financial issues that you and your loved ones face in relation to entering an aged care facility. Working with you we will identify what your choices are and their financial impact. We can then assist you to structure your financial affairs so that you can enter aged care knowing how to manage or even reduce your costs, maximise your Centrelink benefits and ensure that you can afford the care that is right for you. We empower you to make the right decision for your aged care needs with peace of mind. Phone: 9340 9200 and 9381 6622 Web: www.wpfp.com.au and www.destfp.com.au Email: aldis@wpfp.com.au | geoff@wpfp.com.au | craig@destfp.com.au Our offices are located in Osborne Park and Perth.
Our aged care advisors are part of the Aged Care Gurus Adviser Network
Financial advice
Operating from community organisations, financial counsellors can provide independent and confidential information, support and advice on a range of areas including consumer credit law, bankruptcy and debt collection laws, industry hardship policies and Government concession frameworks. They can help you in your negotiations with financial institutions and creditors and may also be able to assist with your budgeting and referral needs. Services are funded by State, Territory and Federal Governments and are provided free of charge. Find out more about financial counselling services in your State or Territory on financialcounsellingaustralia.org.au or call the National Debt Helpline on 1800 007 007 to speak to a financial counsellor over the phone. Disclaimer: The information in this book is general in nature and does not constitute legal or financial advice. Readers should seek their own personal legal and financial advice from a suitably qualified practitioner. Aged care cost – What you ought to know
Did you know? – Approximately one-quarter of your retirement is expected to be ‘care years’ where help may be needed with daily living activities, and nearly half of Australians take up an aged care bed within one month of being assessed as needing full time residential aged care.
Most people want to remain independent throughout retirement and to stay in control of where and how they live. Your ability to do so may depend on your health and physical well-being. As we age, some things become harder to do on our own. If your ability to live independently starts to decline and you need help with daily living activities such as cooking, cleaning and personal care, you may need to move into residential care. The costs for residential care are divided into three categories: Cost of accommodation Daily care fees Extra services The daily care fees can be up to $109,285 per year, but a large portion is paid by the Government. The contribution you would pay is between $18,845 and $46,599 depending on your financial means (as assessed by Services Australia). For most people however, the biggest concern is how to pay the large amounts quoted for a room. These range from around $100,000 to $2 million but will commonly be between $400,000 - $600,000. These lump sum payments are called Refundable Accommodation Deposits – RADs.
Financial advice
Seeking financial advice on what options you have for payment and funding strategies may help to minimise your stress. Let’s examine some of the facts around accommodation payments. Fact 1 – This is not lost money The first thing to know about RADs (paid since 1 July 2014) is that they are fully refundable when you leave care, unless you allow the service provider to deduct other fees to help with your cashflow. Repayment is also guaranteed by the Federal Government if paid to an approved provider. This is an important thing to check when you are selecting a care provider. Fact 2 – You don’t have to pay the lump sum Accommodation payments are quoted as a lump sum but are also converted to an equivalent Daily Accommodation Payment (DAP). The interest rate used for this conversion is 4.10% (for entry from 1 July 2020). For example, a RAD of $400,000 is converted to a DAP of $55.89 per day. If you accept a place in a residential service, you can choose whether to pay the full RAD, the full DAP or any combination of the two. You don’t need to make this choice until 28 days after moving into care and the service is not able to pressure you to choose any particular option. Fact 3 – Even with less assets, it may be affordable If you don’t have enough assets to pay the RAD the first step may be to see if you qualify for Government concessions as a low-means resident – this would require your share of assessable assets to be less than $171,535.20. If you don’t qualify you will need to find a way to fund the full accommodation payment requested by the service. If you don’t have enough assets, paying a part RAD and part DAP may help, but only if you have surplus cashflow to pay the DAP. One further strategy option is to pay as much of the RAD as you can afford and then instruct the service provider to take the DAP (on the unpaid amount) out of the RAD you have paid. This option leaves your income to meet daily care fees and living expenses but reduces the RAD refunded when you leave. Fact 4 – There is no pressure to act quickly or sign documents Understand that each group you may be dealing with, be it the hospital, social worker, aged care facility or Services Australia (Centrelink/My Aged Care) has a desire to assist you, but they do not put all the pieces of your puzzle together. Do not feel pressured into signing documents, completing forms or make decisions straight away. Seek advice first, as sometimes opportunities present themselves to improve your situation before you complete these forms.
Fact 5 – You should get advice – and not all advisers are ‘equal’ Identify an experienced and Accredited Aged Care Professional who can help you make the right decisions, outline the options available to you and the benefits and consequences of each decision you are considering. How they support you during this potentially very stressful and tumultuous time: Help you create a clear plan for aged care Family discussions, helping minimise disputes Evaluate the options and strategies for your accommodation payment Help you identify what’s important to achieve your goals and preferences Review your financial situation and help you evaluate what you can afford Develop strategies to optimise and improve your financial position Explaining the impacts to Centrelink payments and Aged Care Fees Review your estate plan to avoid unintended consequences Disclaimer: The examples provided are illustrative only and contain information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Rates are current as at July 2020. The information for this article has been submitted by Dianne Chalk (CFP®), Accredited Aged Care Professionals (TM) of Hillross Fairy Meadow ABN 84 144 960 934. Hillross Fairy Meadow is a Corporate Authorised representative of Hillross Financial Services Limited ABN 77 0003323 055 AFS Licence No 232705.
Financial advice
Are you feeling overwhelmed by the complexities and financial costs of Aged Care?
Perth Aged Care Financial Advisers are ready to help guide you through the Aged Care financial maze.
Our accredited advisers can assist you with specialist advice on:
✓ Ways to cover your accommodation costs ✓ Your entitlements to government pensions and other related benefits ✓ How to minimise the costs and tax consequences of aged care
Partnering with you to make informed decisions
Client Testimonial
‘Getting Perth Aged Care Financial Advisers involved was the first and best decision we made. At first we were overwhelmed with all the numbers and didn’t know where to start. They pointed us in the right direction, removed the financial stress and most importantly structured everything so fees were minimised and there was enough cash flow to pay for these fees.’ - A. Faliti -
