Helping a parent being placed into Aged Care is a very emotional time for all people involved.
From getting the initial ACAT Assessment, all the way through to actually driving Mum or Dad to the facility can take months and months, and can be very emotionally taxing.
Unfortunately, many people don't realise the funding options available to them to actually get the Refundable Accommodation Deposit (RAD) and secure the accommodation.
Too often the family believes that the only option is to sell their parents family home in order to fund the RAD, and this is often done quickly which may force a "fire sale" or even remove the option of keeping it in the family lineage.
There is a better way.
LaTrobe Financial has created a product that utilises the equity in the home, and secures the RAD to it.
Payments are not required to be made as they are self-capitalised, but the home must be sold after 7 years (long enough for the family to decide what they are doing with it), or until the loan reaches a 70% LVR.
Some of the quirky things about this product is that it is possible (if done the correct way), to have a renter in the old home and the rental income not count fully against the Centrelink Test.
Also, the Centrelink Assets Test is capped at a figure under $200,000 on any family home in the recipient’s possession - regardless of the value. This means potentially a better financial outcome in relation to Centrelink payments or subsidies.
As the ageing population rapidly grows in Australia, approximately $3 billion per annum is required to fund individuals that will need to move into aged care facilities. Individuals will have to pay a Refundable Accommodation Deposit (RAD). Such deposits commonly exceed $500,000. How to fund this payment is a complex problem for many families.
Reflecting our heritage La Trobe Financial has identified this as an area where customers are under-served and is taking a lead to address this problem by providing a specialist solution to help our ageing senior population. A product that specifically funds the payment of the RAD and also helps reduce the emotional stress for families when moving a loved one to an aged care facility.
To get specialised advice on funding options for Aged Care Facilities, contact Scott Butler of the Edge Specialist Advice Network in Toowoomba.
