For many older Australians, the move from the family home to an aged care facility often occurs as a result of a crisis. There is little time to plan the best option and significant emotional turmoil and financial stress can accompany the event – for the individual as well as family members.
Sandra Bettington* is a client of ours, aged in her mid 70s who came to see us because she wanted to avoid this scenario.
Living on her own, she had decided she would like to stay in her family home for the next few years and then move into a staged residential facility of her choosing.
She had looked around and found one she liked very much. But she was unsure how much it would cost and was anxious to ensure she would have enough money to afford it.
Sandra has a daughter, Kate who has a family of her own. If it was possible, she also wanted to give Kate a reasonable sum of money now, rather than to wait until after she had died to pass it on as an inheritance.
We reviewed Sandra’s financial situation in detail, along with the projected costs associated with moving into the residential facility in 2013.
Strategies to plan for aged care requirements
As a result, we came up with a range of options that would cover the entry bond and ongoing costs associated with her move. We also looked at strategies that would minimise any impact upon Sandra’s age pension entitlements.
The financial plan we constructed also meant Sandra was able to give Kate $50,000 now, which Kate used to pay a considerable sum off her mortgage.
Most importantly, Sandra has the confidence of knowing that she can plan her move in an orderly fashion, knowing she has enough money to comfortably meet all her expenses now and in the future.
The point of this story is to illustrate the benefit of planning ahead to help ensure that a move into aged care (by choice or necessity) is done in a way that minimises stress.
And with accommodation bonds in capital cities and regional areas now averaging $300,000, it is not something to procrastinate about.
You might be thinking about your own future needs, or perhaps you may be faced with making decisions on behalf of a parent or other elderly relative? Having expert advice to plan ahead can make the process much easier.
*Names changed to protect privacy
Contact us to find out more about planning ahead for aged care.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]