There will come a time in a loved one’s life when they are unable to support themselves living at home.
Whether that time occurs early on due to a debilitating injury or illness, or simply through the course of natural aging, steps have to be taken to ensure that individual is cared for.
From children to siblings or close friends who understand their circumstances, there are professional organisations who can assist in these events.
Aged care financial planning services offer elderly residents and pensioners a chance to map out their transition without being crippled with unwanted bills and charged excessively for the move.
Here is where it is important for spouses, next of kin and carers to understand what is involved with these services.
Examination of Personal Circumstances
Any operator in the field of aged care financial planning will want to refer directly to the assessment handed down by the Aged Care Assessment Team (ACAT). This will be a report issued following a 45-75 minute consultation that can take up to 2 weeks to complete for local residents. The document will go into detail about medical history, current requirements, living circumstances, relationships with friends and family, and any other details that would be relevant to an aged care facility. The financial specialist will take those factors into account and view them through that prism, running a gauge on the cash flow, potential subsidies that can be utilized and what liabilities, if any, are included.
Home or Residential Care Options
Aged care financial planning representatives do not always push their clients into a new accommodation setting. Depending on the result of the ACAT review, it could be recommended that they source a carer on their own property, a service that will have to be paid for and potentially subsidized in some shape or form. Either option will have to be weighed up based on cashflow, ongoing fees and testing the income of the client through the pension. This means test will provide the individual with the options as they make a more informed decision.
Looking for Liquidity and Extra Financial Options
When clients sit down with a representative from an aged care financial planning service, all options should be on the table. This will likely be a permanent transition and there will be logistical issues that have to be considered from a financial standpoint. Does the premises need to be sold, rented out or retained within the family? Are there investments or stocks that can be sold for liquidity? Is there a superannuation fund involved? Are there other assets such as vehicles, electronics or household appliances that can be sold for cash? Seeing where extra money can be found is one of the core practices that these firms will run through for their client.
Lead in Phase to New Living Arrangements
When boiled down to its essence, aged care financial planning services are geared towards ensuring that a recipient is suitable to make the move into assisted living. A comprehensive strategy will be put in place to cover all costs and to oversee the sale of assets and the negotiations with the landlord. What will be established is the terms and conditions of the new living arrangements, setting up either Daily Accommodation Payments (DAP) or a Refundable Accommodation Deposit (RAD) depending on the circumstances. The risks associated with these plans will be outlined to offer contingencies in the ensuing 12-24 months and beyond should there be further action necessary. That will only be necessary if the reliance on certain funds are not sustainable.
Aged care financial planning services are incredibly valuable for clients who want to know what options they have and how they can afford assisted living initiatives. First consultations can be sourced at no cost, giving families the opportunity to test the waters in the market and make a sound judgment.