Page 17 - Understanding Aged Care

UNDERSTANDING AGED CARE

TIP: Only pay the RAD if this leaves you with • Are conflicted about moving into residential
sufficient cashflow or other assets to fund your aged care and would like to keep your home
expenses. It is also important to consider in case you change your mind
the implications into the future. A reasonable
cash reserve is important with a rental strategy • There is potential for good growth on the
to cover any unforeseen costs or periods family home or current market conditions for
where rental income is not being received or for selling are unfavourable
maintenance.
A mixture of these considerations usually
determines whether the strategy is appropriate.
When is it appropriate strategy Seeking financial advice and discussing the
to use? options with your family are both important
steps in making a fully informed decision. Each
Renting your former home may be an person’s situation is unique and advice is always
appropriate strategy if you move into permanent important to compare and evaluate options.
residential care from 1 January 2017, plan to
retain your former home and:

• Are happy to rent your home to generate
additional income

• Do not want to sell your home and wish to
understand the impact on your Centrelink/
DVA benefits and aged care fees

• Have sufficient income and available assets
to pay aged care fees, living expenses
and costs associated with maintaining and
renting the home

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