AGED CARE STRATEGY SUMMARY 12 Sep 2018

Blog / Aged Care

Each individual situation may have a different
strategy that help to reduce the means tested fees.
We have summarised the different situations and the
strategy that may assist.
 
If your situation is:     Strategies that may help:
(click the link below to read)
Paying ongoing means tested fee Purchasing a funeral bond
Purchasing a pre-paid funeral or burial plot      
Gifting within allowable limits
Paying an accommodation contribution Purchasing a funeral bond
Social security entitlements are reduced under either
the assets or icome test
Purchasing a funeral bond
Having sufficient funds to pay lump sum accommodation
payment without selling former home
Retain and rent former home
Retain former home and leave vacant
 
Having a former home that has a high market value Retain and rent former home
Retain former home and leave vacant
Retain former home for two years, then sell
Persons with a former home that will generate sufficient
rental income to assist with aged care expenses
Retain and rent former home
Retain former home for two years, then sell
Persons who qualify for the exemptions    
as they entered aged care pre 1 January 2017
(or 1 January 2016) and paid DAP/DA
Retain and rent former home
Persons who moved into aged care within previous
two years (asset value of home exempt for social
security purpose
Retain and rent former home
Retain former home and leave vacant
Persons who want to retain their former home Retain former home and leave vacant
Persons with sufficient income to meet aged
care expenses without renting former home
Retain former home and leave vacant
Persons with a short life expectancy Retain former home and leave vacant
Persons who will receive a reduced or cancelled
age pension when the former home becomes
assessable two years after entering aged care
Retain former home for two years, then sell
Persons who do not have sufficient funds to pay lump
sum accommodation payment without selling former
home
Sell former home
Persons with a former home that has a
relatively low market value
Sell former home
Persons with a former home that will not generate
sufficient rental income to meet aged care expenses
Sell former home
Persons with a former home that is not able to be
rented without substantial repairs/renovations
Sell former home
Persons residing in aged care who are under age
pension age
Contribute or rollover income streams to
accumulation phase if under age pension age
Persons residing in aged care who have a younger
spouse under age pension age
Contribute funds into spouse’s superannuation
fund if under age pension age
Persons receiving a social security payment and
residing in aged care, who have a grandfathered
account based pension
Drawing the minimum pension payments from a
grandfathered account based pension
Persons who have a grandfathered account based
pension where the assessable income from the
pension exceeds the deemed income on an
equivalent amount.
Switch grandfathering off by commuting
and rolling over grandfathered account
based pensions to apply deeming
Persons who are liable to pay an accommodation
payment for aged care
Pay accommodation payment as a Refundable
Accommodation Deposit (RAD)
Persons receiving a social security/DVA means
tested payment    
Pay accommodation payment as a Refundable
Accommodation Deposit (RAD)
Persons who do not have sufficient cashflow to meet
aged care expenses
Drawing down DAP from RAD
Persons who have a means tested amount just under
the threshold (currently $56.14 per day)
Qualifying as a low means resident
Persons who do not have the capped value of a former
homeincluded in their means tested amount assessment
Qualifying as a low means resident
Persons who are low means residents and can afford to
pay a lump sum RAC
Pay accommodation contribution as a
Refundable Accommodation Contribution (RAC)
Persons with insufficient funds to pay RAD Loan from family member to fund RAD
Persons who have family members that want them to
enter a facility that charges a higher RAD
Loan from family member to fund RAD
Persons who are the second spouse of a person
entering aged care and want to retain the former home
Loan from family member to fund RAD
Persons who are not permitted to pay the full
accommodation payment as a RAD due to the
minimum permissible asset requirement
Paying an additional RAD after 28 days
Couples who enter aged care at the same time Timing entry when couples enter care
Persons who are impacted by the income test for
social security purposes
Insurance bond in a trust
Persons with sufficient funds to invest in an insurance
bond in a trust
Insurance bond in a trust
Persons with funds available to invest after paying
ccommodation payment
Purchase long term annuity
Persons who require a regular cashflow to assist with
meeting aged care expenses
Purchase long term annuity
Persons who do not need to make voluntary
commutations from the annuity
Purchase long term annuity


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Disclaimer and Warning
The information above is of a general nature only.  It should not be used as a source to make financial decisions.  It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status.  We recommend that if you are looking for advice on this matter, you should contact us .




 


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