How would you cope if you suddenly had to take over the management of your parent’s finances? If your parent(s) were to fall ill or become incapacitated, someone has to take over the payment of bills, managing their money, and general well-being.
Not everyone has to pay to enter residential aged care, but if you are like most people and have assets or income of some sort (whether that’s from investments, superannuation, or rent from your home), you will need to contribute toward the cost of your care.
A granny flat right is established when accommodation is provided in exchange for a payment or a transfer of assets. It is important that Centrelink has provisions for people to transfer assets or make payments to live with another person so that the transfer is not counted as a gift under the deprivation of asset rules.
There are 4 possible costs associated with a move into residential aged care, with 2 of those based on a person’s income and assets (refundable accommodation deposit (RAD) and means-tested care fee).
Placing a parent or loved one into an aged care facility can be a stressful and distressing time for a family. It is not a pleasant financial experience either!
Quite often, the decision as to whether a loved one needs to access the Aged Care System in Australia is taken out of the hands of families.