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Aged Care Financial Planning Services
Make Aged Care Decisions with Confidence and Clarity
When families face aged care decisions, the financial complexity can be overwhelming. The intersection of accommodation costs, age pension eligibility, asset restructuring and estate planning is a web of considerations that requires specialist expertise. Our aged care financial planning services help families make informed decisions that optimise financial outcomes and quality care for their loved ones.
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Understanding the Aged Care Financial Landscape
Aged care decisions have significant financial implications that go far beyond the cost of care. From Refundable Accommodation Deposits (RADs) and Daily Accommodation Fees (DAFs) to age pension impacts and estate planning considerations, every decision has long-term consequences for the person entering care and their family.
The weight of these decisions is compounded by the emotional stress of transitioning a loved one to aged care. Our role is to provide clarity, strategic guidance and peace of mind during this difficult time so families can focus on what matters most – their loved one’s wellbeing.
Comprehensive Aged Care Financial Strategy
Pre-Planning and Assessment
Plan ahead for aged care
The best aged care financial planning starts well before care is needed. By planning ahead, families can structure their assets and finances to optimise outcomes and reduce stress when decisions need to be made quickly.
Pre-Planning Considerations:
- Asset Structure Optimisation – Review current asset ownership and consider restructuring to minimise aged care fees and maximise age pension entitlements
- Investment Portfolio Review – Review current investments for liquidity and income generation needs
- Insurance Evaluation – Review life insurance and consider specific aged care insurance products
- Estate Planning Integration – Ensure aged care planning aligns with broader estate planning objectives
- Family Communication – Facilitate discussions about preferences, expectations and financial responsibilities
Immediate Decision Support
Expert guidance when aged care placement is imminent
When aged care is needed, families often face time-critical decisions with significant financial implications. Our immediate support service provides rapid assessment and strategic advice to help families navigate this critical transition period.
Key Decision Areas:
Accommodation Payment Options:
- Refundable Accommodation Deposit (RAD) – Full upfront payment that is refunded when care ends
- Daily Accommodation Fee (DAF) – Ongoing daily payment instead of a lump sum
- Combination Payment – Mix of RAD and DAF to optimise cash flow and investment returns
Home Ownership Decisions: One of the biggest decisions families face is whether to sell or retain the family home. This decision impacts age pension eligibility, accommodation costs and estate planning outcomes.
- Selling the Home – Provides immediate liquidity for aged care costs, but may affect age pension entitlements
- Retaining and Renting – Generates ongoing income but requires property management and has different age pension implications.
- Family Occupation – Spouse or dependent continues living in the home, which affects both age pension and aged care fee calculations
Age Pension Optimisation: Understanding how aged care decisions impact age pension entitlements is critical to maximising government support and minimising out-of-pocket costs.
- Asset Test Implications – How different accommodation payment options affect assessable assets
- Income Test Considerations – Managing deemed income from financial investments
- Homeowner vs Non-Homeowner Status – Understanding the different thresholds and their implications
Ongoing Financial Management
Ongoing support throughout the aged care journey
Aged care financial planning doesn’t end with initial placement decisions. Ongoing management ensures families continue to optimise their financial position as circumstances change.
Ongoing Support Services:
- Regular Portfolio Reviews – Ensure investments continue to meet changing income and liquidity needs
- Age Pension Reviews – Monitor and optimise ongoing age pension entitlements
- Estate Planning Updates – Adjust estate plans to reflect changed circumstances
- Fee Management – Monitor aged care fees and identify opportunities for reduction
- Family Financial Coordination – Help families manage the financial aspects of ongoing care
Specialised Aged Care Planning Scenarios
Couples Separated by Care Needs
When one partner needs aged care while the other remains at home, families face unique financial challenges. We help couples optimise their combined financial position while ensuring both partners are adequately provided for.
Couples Strategy Considerations:
- Asset Attribution – Strategic allocation of assets between partners to minimise aged care fees
- Income Splitting – Optimise income distribution for tax efficiency and age pension maximisation
- Home Ownership Decisions – Balance the needs of the partner remaining at home with aged care funding requirements
- Estate Planning Coordination – Ensure wills and estate plans reflect changed circumstances
High Net Worth Aged Care Planning
Families with significant assets face different aged care challenges, often prioritising estate preservation and tax efficiency over government benefit maximisation.
High Net Worth Considerations:
- Estate Tax Minimisation – Minimise tax for beneficiaries through asset restructure
- Intergenerational Planning – Balance current aged care needs with wealth transfer objectives
- Trust Structures – Use family trusts and other structures to optimise aged care fee assessments
- Investment Management – Maintain sophisticated investment strategies while meeting aged care liquidity needs
Real Life Examples
Case Study: Andrew’s Family When Andrew’s mum, Jacqui, needed nursing home care and his dad, Barry, stayed at home, our strategic advice delivered results. We restructured Barry’s account-based pension before the estate transfer and saved Andrew and his sister $24,000 in tax. We also set up a monthly income stream for Barry to cover aged care costs and guided them through the Centrelink age pension process.
This example shows how proactive aged care financial planning can save thousands while ensuring all family members are looked after during this transition.
Learn more about how our aged care financial planning has helped other families optimise their outcomes while providing for their loved ones.
Why Specialised Aged Care Financial Planning Matters
Aged care financial planning requires specialised knowledge of complex legislation, changing regulations and the interaction between government programs. General financial advice doesn’t address the unique challenges families face during this transition.
Our expertise ensures families:
- Minimise aged care costs through planning and asset structuring
- Maximise government benefits by understanding and optimising age pension entitlements
- Preserve family wealth through estate planning and tax strategies
- Reduce family stress by providing clear guidance and ongoing support
Get the facts before making a decision
Next Steps
Aged care planning is best done before care is needed, but even if decisions need to be made quickly, strategic advice can still help.
Whether you’re planning ahead for future needs or facing immediate aged care decisions, talk to us today to schedule your aged care financial planning appointment and see how we can help you navigate this complex process with ease for your family.
Contact us today to book your initial consultation and start your financial journey.