Making the move into Aged Care can be one of the most significant transitions a person and their family will face. It can also be an incredibly complex one.
That’s why I’m pleased to share that I have recently completed my Aged Care Accreditation, adding another level of specialist knowledge to the advice we can provide at Moore Financial Advice.
Aged Care advice is about much more than simply understanding the cost of a room. There can be important decisions around Centrelink, Aged Care fees, the family home, investments, cash flow and estate planning – often at a time when families are already dealing with significant emotional and practical pressures.
My aim is to help clients understand their options, make informed decisions and, importantly, have a clear plan in place.
While every situation is different, there are some things families can do before an aged care need arises that can make the process considerably easier.
Tim’s 5 Tips for Families Planning Ahead
- Get your Centrelink affairs up to date
If you or your loved one receives an Age Pension or other Centrelink benefits, make sure the information Centrelink holds is accurate and current.
Aged care fees can be affected by a person’s financial circumstances, so outdated asset or income information can create unnecessary complications and delays when entering care. Having Centrelink records in order beforehand can make the process much smoother.
- Make sure there is a valid and up to date Will
Moving into Aged Care is a good prompt to review your estate planning arrangements.
Make sure there is a valid Will in place and that it still reflects your wishes and current circumstances. It is also worth considering whether other important estate planning documents and authorities are up to date, particularly those that allow trusted people to make financial or personal decisions if you are no longer able to do so yourself.
A solicitor can assist with ensuring the appropriate documents are in place.
- Have a plan for paying the RAD
One of the biggest financial decisions when entering residential Aged Care can be how to fund the Refundable Accommodation Deposit (RAD).
Depending on your circumstances, you may consider paying the RAD in full, paying an ongoing amount instead, or using a combination of the two. You may also need to consider whether assets should be sold to fund it – including what happens with the family home.
There isn’t one answer that is right for everyone. The important thing is to understand the alternatives and their impact on your cash flow, Centrelink position, Aged Care fees and longer-term financial position before making the decision.
- Think carefully about location and the right facility
Finances matter, but Aged Care is first and foremost about quality of life.
Consider where the most appropriate location will be – not only for the person entering care, but also for the family and friends who will be visiting and supporting them.
Being close to family can make an enormous difference. It is also worth taking the time to visit different facilities and consider the level of care, environment, activities and overall feel of each one. The cheapest, closest or newest facility isn’t automatically the right one.
- Have open and honest family conversations
Perhaps the most important step is also one of the easiest to put off.
Talk openly about what you want.
If you’re planning for yourself, let your family know your preferences. If you’re helping an ageing parent or family member, involve them in the conversation as much as possible and make sure their wishes are heard.
Where would they like to live? What matters most to them? How important is staying close to family? What are their thoughts about selling or retaining the family home? Who would they like involved in making decisions?
These conversations can be difficult but having them early – before a decision needs to be made urgently – can remove a great deal of uncertainty and stress later.
Planning Before the Pressure Is On
One of the biggest lessons with Aged Care is that the best time to start planning is before you need to.
When a family is suddenly faced with an Aged Care decision following an illness, hospital stay or change in circumstances, there can be a lot to work through in a relatively short period of time.
Having your affairs in order, understanding your options and talking about your wishes beforehand can make an enormous difference.
With my recent Aged Care Accreditation, Moore Financial Advice can now bring an additional level of expertise to these conversations, helping clients and their families navigate the financial side of Aged Care and understand the choices available to them.
Because ultimately, good Aged Care planning isn’t just about getting the numbers right. It’s about helping you and your family make important decisions with greater clarity and confidence.
