In this column LUISA CAPEZIO and CRAIG PHILLIPS, of Phillips Wealth Partners, outline five key areas to consider when planning to move into aged care…

ANYONE moving into residential aged care will, most likely, be faced with many personal and financial decisions.

Here, we go through five key areas to help make the transition in care easier.

Planning

A useful first step is to plan early. Start this process by having a family meeting to make shared decisions. Use the meeting to have frank and open discussions about:

• Care options and preferences. 
• Potential concerns or issues.
• Who needs to be involved in any planning.

Accessing options

To access subsidised aged care, register with MyAgedCare and arrange a free assessment by the Aged Care Assessment Team. This team will help grant approval to access subsidised aged care services such as home, respite or permanent residential aged care.

Understanding the costs

What you pay for residential aged care will be divided into contributions towards accommodation, care and additional services.

How much you have to pay will depend on:

• The choices you make.
• Your assessable assets and income.

The total payable can be hard to calculate without good advice. Eveyone’s is different. There is no “one-size-fits-all” cost. 

Covering the costs

Before making a move, a complete review of your financial situation is ideal to ensure you create sufficient cash flow and maximise your estate.

At Phillips Wealth Partners, we work with clients to review their full financial situation. We develop an appropriate strategy to help them make a decision on how best to pay for their aged-care fees on arrival, the first year and projected several years ahead.

Moving

When you accept a place in care you will be required to sign a residential agreement. This agreement includes information about rights, obligations, and aged-care fees. 

The fees will commence when you accept to enter permanently, but you get 28 days to tell the aged-care home whether you will be paying a lump sum, a daily fee or a combination of both. There are always options to change the payment structure down the track. 

For the best outcome, start planning early, involve your trusted advisers and look beyond just the first year implications.

To learn more, call us on 1300 10 22 33 or book a 15-minute call (at no cost) via our website phillipswp.com.au

Disclaimer: This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Phillips Wealth Partners or your professional adviser. Phillips Wealth Partners Pty Ltd ACN 624858420 is a corporate authorised representative of Insight Investment Services Pty Ltd AFSL 309996.