Financial advice

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.

Throw in the payment/deposit system – Refundable Accommodation Deposit (RAD) or a Daily Accommodation Payment (DAP) – negotiating various fees with a facility, and filling in Centrelink forms, things can quickly become overwhelming.

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 payments

Whether to sell the family home or rent it out

How to maximise or keep the pension

This is happening all at a time when your main concern is finding a suitable place for your loved one to receive the care they need.

It’s important to take your time researching the options available and get answers to all your questions before making any decisions about how to pay for care.

By understanding the rules and being able to apply them to individual circumstances, financial advisors are able to save their clients thousands of dollars.

Things you ‘should not’ do

Decide to rent the home before everyone discusses and accepts the consequences.

Decide to sell the home before understanding the Age Pension and aged care fee impact.

Choose how you will pay the aged care fees before understanding all of your options.

Make untested or inaccurate assumptions about your ability to meet the aged care costs.

Allowing or enabling the dominant family member to influence the decisions.

Incorrectly assume that all decisions must be made before you can get the care needed.

Instead seek help from a Certified Financial Planner who is experienced in aged care.

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.

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

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 or have experience with aged care financial issues?

What licenses, credentials or other certifications do they have?

Will they provide you with an outline of all your options?

Will they provide their advice in ‘plain English’ and in writing?

Will they deal with Department of Veterans’ Affairs or Centerlink on your behalf?

How much do they charge?

Is the service a once-off or an ongoing service?