Category Archives: Aged Care

Can a Nursing Home Take All of Your Assets
Author Shaun Ganguly Categories Aged Care, Finances Leave a comment

Can a Nursing Home Take All of Your Assets?

If you are a senior citizen, there is a good chance that you are either already living in a nursing home (aged care home) or will need to do so at some point in the future. Nursing homes can be a great place for seniors who need assistance with their day-to-day activities, but they can also be quite expensive. 

In many cases, the cost of nursing home care exceeds the amount of money that the elderly person has saved up over the years. This can create some difficult financial decisions for family members who are responsible for their loved ones’ care. One question that often comes up is this: Can a nursing home take all of your assets? 

The answer to this question is NO. A nursing home cannot simply seize all of your assets. However, there are certain circumstances under which you may be forced to sell your properties, such as your home, in order to pay for nursing home care. In general, these situations arise when the cost of your care is not covered by some form of financial assistance. 

Nursing Home vs Assets Risk

If you are facing the prospect of having to sell your assets to pay for nursing home care, there is a government financial support program in Australia that can help. The Financial Hardship Assistance Program provides financial assistance to people who are unable to pay their caring home fees. There are a number of eligibility criteria that must be met in order to qualify for this assistance, but it is worth exploring if you are struggling to pay your fees. 

The bottom line is this: While a nursing home cannot take all of your assets, there are certain circumstances under which some of your property may need to be sold in order to help pay for your care. This is a difficult situation that no one wants to face, but it is important to know that you have options available to you. If you find yourself in this situation, it is important to seek advice from an expert. 

The best way to protect your assets and prevent having to sell them to pay for nursing home care is to plan ahead, even before you reach retirement age. Speak with a financial adviser about your options and make sure you are taking steps to protect your assets. With proper planning, you can ensure that your assets will be there for you when you need them most. 

Five Ways to Protect Your Financial Assets from Nursing Home Costs
Author Shaun Ganguly Categories Aged Care, Finances Leave a comment

Five Ways to Protect Your Financial Assets from Nursing Home Costs

While aged care homes or nursing homes can provide a necessary level of care, they can also be expensive. This can be a burden for you and your family. If you’re not prepared, they can quickly drain your bank account. Fortunately, there are ways to protect your financial assets from being used to pay for nursing home costs. In this blog post, we will discuss some of the ways to protect your finances during and even before this difficult time. 

1. Seek financial advice from a financial adviser beforehand 

It’s important to start planning early, even before you or a loved one enters a nursing home. You should seek professional aged care financial advice to help you understand the costs and how to best protect your assets. This will allow you to create a solid plan that will safeguard your money while still ensuring that you have the aged care you need. 

2. Shop around for the best deal 

Not all nursing homes are created equal. Some are more expensive than others, but that doesn’t necessarily mean they’re better. When you’re looking for a nursing home, make sure to compare the cost of care as well as the quality of services. This will help you find the best value for your money, helping you to keep more of your assets in the long run. 

3. Ask for help from the government 

The Australian government has a financial assistance program called financial hardship assistance. This program is designed to help eligible nursing home residents who are struggling to pay for their nursing home costs. It is important to note that this program is means-tested. This means that your assets will be taken into consideration when determining your eligibility for assistance. If you’re qualified, your basic daily fee, means-tested care fees, and/or accommodation fees may be shouldered by the government either entirely or in part. 

4. Receive support from family and friends 

This might be a no-brainer, but it is still worth mentioning. If you have family and friends who are willing and able to support you financially, you can ask them to contribute to your nursing home costs. Of course, you should only do this if you’re comfortable with it and if they’re able to contribute without putting themselves in a difficult financial situation. This will take some of the burdens off of your shoulders and help you protect your financial assets. 

5. Negotiate with the nursing home 

Finally, you can try to negotiate with the nursing home. This may be a difficult process, but it’s worth a try. If you’re able to negotiate a lower rate, you may be able to save some money on your nursing home costs. It’s important to remember that this is a negotiation, so you’ll need to be prepared to compromise. 

These are just a few of the ways that you can protect your financial assets from nursing home costs. It’s important to remember that every situation is different, so you’ll need to consider what will work best for you and your family.  If you’re unsure of what to do, it’s a good idea to speak with a financial adviser or lawyer. They will be able to help you make the best decision for your unique situation. 

The Benefits of Senior Living
Author Shaun Ganguly Categories Aged Care 2 Comments on Why Aged Care is Important: The Benefits of Senior Living

Why Aged Care is Important: The Benefits of Senior Living

As we age, our needs change. For some people, this means that they need more help with everyday activities like bathing, dressing, and cooking. That’s where aged care comes in – aged care services provide the support and assistance seniors need to live safe, happy, and healthy lives. In this blog post, we‘ll discuss the many benefits of senior living and why aged care is so important. 

The Benefits of Senior Living: Provides assistance with everyday activities 

The later years of life can be a time of great vulnerability. As our bodies begin to slow down, we may find it difficult to perform activities of daily living. For many seniors, this can be a source of great frustration. Aged care services provide crucial support for these individuals, helping them to maintain their quality of life. Aged care workers are trained to provide the necessary assistance with tasks such as bathing, dressing, and eating. 

Maintains independence for as long as possible 

Many seniors prefer to stay in their own homes rather than move into a retirement village or nursing home. Home care is a way to allow seniors to maintain their independence and live in their own homes for as long as possible. Aged care companies offer home care packages that provide seniors with the support they need to live independently. These home care packages can include things like domestic assistance, personal care, and transport services. 

Further, aged care workers can provide home care and in-home support with activities of daily living, giving seniors the freedom to live as they please. In addition, they can provide companionship and emotional support. Aged care workers are trained to deal with the unique needs of seniors for their home care, and they can help to make the transition to old age a bit easier. 

Provides a social outlet for seniors in aged care facilities 

For seniors who choose to live in retirement villages or aged care facilities, the benefits of social interaction can be significant. These aged care facilities provide a much-needed social outlet for seniors who may otherwise be isolated and cut off from the outside world. In addition to the interaction, they receive from aged care workers, residents of aged care facilities have the opportunity to interact with their peers on a daily basis. This social interaction can help to improve mental health and overall well-being. 

Provides peace of mind for both seniors and their families. 

Aged care can provide peace of mind for both seniors and their families. Knowing that there is someone there to provide home care and help with everyday tasks can take a lot of stress off of families. And, because aged care companies are staffed with professionals who are trained to deal with the unique needs of seniors, families can rest assured that their loved ones are in good hands. 

These are just a few of the many benefits of aged care. If you or a loved one is considering aged care, be sure to weigh all of the options and choose the option that best meets your needs. Aged care is an important part of ensuring that seniors can live happy, healthy, and independent lives. 

The Importance of Aged Care: Why It Matters for Seniors and Families
Author Shaun Ganguly Categories Aged Care 3 Comments on The Importance of Aged Care: Why It Matters for Seniors and Families

The Importance of Aged Care: Why It Matters for Seniors and Families

Aged care is a vital service that helps seniors and their families manage the challenges of aging. It can be difficult for seniors to live on their own, especially if they have health concerns or mobility issues. That’s where aged care comes in. Aged care professionals can help seniors stay safe and comfortable in their own homes, while providing support and assistance to their families. In this blog post, we will discuss the importance of aged care and why it matters for both seniors and their families. 

The Importance of Aged Care: Supporting independence and community connection 

Aged care is a vital service that helps seniors remain independent and connected to their communities. As we age, we often face declining health, mobility, and cognitive function. This can make everyday tasks difficult and can lead to isolation and loneliness. Aged care can help to offset these problems by providing essential services such as home care, respite care, and day care. In addition, aged care facilities typically offer a wide range of social and recreational activities, which can help seniors stay active and engaged. By receiving the care they need, seniors can enjoy a better quality of life and remain a valuable part of their communities. 

Keeping our seniors safe and healthy 

Aged care professionals can provide assistance with activities of daily living, such as bathing, dressing, and eating. They can also help seniors manage their medications and monitor their health. Aged care is important because it helps seniors maintain their independence and quality of life. It can also prevent serious health problems from developing or worsening. Without aged care, many seniors would be at risk for falls, dehydration, and other health issues. 

Families don’t need to go through it alone 

The end of life is a difficult time for everyone involved. As our loved ones age, they often need more care and attention than we are able to provide. Aged care can help families by providing support and respite care. This can help reduce stress and allow families to continue to provide the best possible care for their loved ones. Aged care professionals can help in providing transportation to doctor’s appointments and other activities. In addition, they can provide emotional support to both the aging individual and their family. Aged care can help families cope with the challenges of aging, and to ensure that their loved ones receive the best possible care. 

Wrapping up 

Aged care is an essential service that helps seniors and their families manage the challenges of aging. If you or someone you know is in need of aged care services, be sure to reach out to a professional provider. Aged care can make all the difference in maintaining a high quality of life for seniors and their families.

Reduce Cost of Aged Care - EOFY Can Be A Great Time
Author Shaun Ganguly Categories Aged Care Leave a comment

EOFY a chance to reduce the cost of aged care

Reduce Cost of Aged Care: When it comes to residential aged care (what used to be called “Nursing Homes”) many people believe if they don’t have any money, they won’t be able to move in. It simply is not true. Most aged care homes keep a ratio of low means residents and market price payers. Low means residents pay a contribution towards their accommodation based on their means and the government provides a “tops up” to the facility, up to a maximum of $61/day. 

That doesn’t mean that if you are a low means resident, it will be affordable. 

The means test to calculate your accommodation contribution will levy you 17.5% of your assets between $52,500 and $178,839 plus 50% of your income above $28,974/ year for singles or $28,454/year if you are a member of a couple. The income threshold is based on the income of someone receiving the full-age pension, so for most people, it is the asset test that affects them.   

In addition to the accommodation contribution low means residents pay the basic daily fee, set at 85% of the Age Pension, currently $55 per day and of course you will still have your own personal expenses and the cost of any additional services (like wine with meals, Foxtel or hairdressing) 

Strategies to reduce your assessable assets such as repaying debt, gifting, prepaying funeral expenses or purchasing a funeral bond and/or purchasing an income stream with an asset test exemption (or a combination) can have a significant impact on your accommodation contribution. 

Reduce Cost of Aged Care – Let’s look at an example 

Shirley receives the Full Age Pension, she has $100,000 of investments and $5,000 in personal assets. Shirley’s daughter lives in her home and qualifies as a protected person. 

Shirley’s accommodation contribution under the income test is zero. Under the asset test, she would need to pay $2.24/day which is $9,187/year. Shirley has the choice to pay her accommodation contribution by a lump sum, daily payment, or a combination. The lump-sum amount, which is calculated using a government-set interest rate (currently 4.07% p.a.) is $222,354, clearly, she cannot afford this but she may choose a combination. 

For many low means residents seeing these numbers causes a lot of financial stress and some wrongly believe that they will have to sell their home.  

For Shirley the combination of the accommodation contribution and basic daily fee means a cost of aged care is $80/day which is $29,174/year and far more than her pension and other income. Paying a lump sum of $226,000 is likewise impossible. But if Shirley could reduce her assessable assets by $40,000 – which could be through a combination of repaying debt, gifting, pre-paying funeral expenses and/or purchasing an income stream with an asset test exempt amount – her accommodation contribution would drop from $25/day to $6/day and the equivalent lump sum would reduce from $226,354 to $53,898. 

End of financial year can be a great time to look at asset reduction strategies as the gifting limits are $10,000 per financial year (with no more than $30,000 in 5 years) potentially enabling you to gift $10,000 on 30 June and $10,000 on 1 July.  

Many low means residents think that they can’t afford to get financial advice, I think they can’t afford not to get it. 

If you have any questions, consulting with an Aged Care Expert is a great way to learn more about your best options. Get in touch now with one of our Aged Care Experts. 

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