When trying to understand your choices in paying for aged care, there are 2 big questions:
- Are you managing the situation to make the most of government support available?
- Are you confident the costs of care can be met over time?
Unfortunately, maximising government support available might mean managing costs over time can be very challenging - and the main reason for this is around the treatment of the family home.
Simply put, retaining the home may mean that the government sees a smaller asset base to assess, however there may be a need for that asset to be sold to help fund the cost of care over time.
Meanwhile, selling the home means higher assessed costs.
It’s a very challenging proposition, if an asset is sold to fund the cost of care - the cost of care goes up. This may not seem fair, but it is how the system works.
So what do you do?
The first step is to be completely clear on what the alternatives are. This means understanding in detail exactly what choices are available, and the full implication of each course of action.
As a minimum, a course of action that is based on emotion - for example retaining the family home, should be considered with a clear view of the financial impact.
Then you should look at the longer term implications - around how easy will it be to manage the ongoing costs of care.
The financial side of emotional decisions - leave it to us
That is what we do at Later Life Advice - we clarify the financial side of your aged care choices, and help you find the right balance.
In the end the right financial decision should be a relatively simple one to make, and it will normally be about about getting the balance right.
We look forward to helping you.