An aged care financial adviser in Melbourne, writing it down before the decisions have to be made.
An aged care financial adviser in Melbourne, working Australia-wide. This is one of the most expensive and emotional decisions a family makes. The cost of getting it wrong is felt for years. We work through the numbers and the family conversation in plain writing.
The six decisions that drive the outcome.
Aged care planning has a vocabulary all of its own and the rules change often. Most of the value comes from working through six decisions: accommodation payment, means testing, the family home, Centrelink, asset structure, and the family conversation.
We work each one in turn, document the trade-offs, and leave a written record the family can refer back to. That document tends to matter more than any individual product choice. Aged care planning usually picks up where retirement planning leaves off, and it leans heavily on Centrelink optimisation work done a few years earlier.
Six decisions, one file.
None of these is a product. Each is a decision that, made deliberately, changes the cost of care and the size of the estate.
RAD vs DAP
Refundable Accommodation Deposit (a lump sum) or Daily Accommodation Payment (an ongoing fee), or a mix. The choice changes means-tested fees, Centrelink, and the estate.
Means testing
Aged care fees depend on an assets-and-income assessment. Small changes in how assets are held can move the means-tested care fee significantly.
The family home
Whether the home is sold, kept, or rented changes both the aged care position and the Age Pension. There are exemptions and time-limits to apply correctly.
Centrelink interaction
An aged care move usually triggers a Centrelink reassessment. We coordinate the forms and time the changes so the entitlement is not lost by accident.
Asset structuring
Gifting rules, deeming, and the various exempt asset categories all matter. Done well in advance, structuring widens the options at entry.
The family conversation
Aged care decisions are rarely made by the resident alone. Adult children, powers of attorney, and the estate plan all sit at the table. We document the decision in writing.
RAD or DAP: the question that frames the rest.
The accommodation cost can be paid as a lump sum (RAD), as an ongoing daily fee (DAP), or as a combination. The choice depends on liquidity, the family's plans for the home, the means-test outcome, and what suits the estate. None of these inputs is fixed.
We model both extremes and a mid-point. The decision then becomes informed rather than reactive. It is also revisited if circumstances change in the first year of care. Where an SMSF sits in the picture, trustee succession and pension drawdowns need to be re-set at the same time, and the financial planning pillar page covers how those pieces meet.
- Quoted RAD at facility
- Current MPIR (DAP rate)
- Means-tested care fee
- Age Pension entitlement
- Family home decision
- Estate intent
Frequently asked questions.
Costs vary by facility and care needs. Typical components include the accommodation payment (RAD or DAP), a basic daily fee, a means-tested care fee, and any extra-service fees. We model the household's particular numbers, not industry averages.
It depends on the rest of the means-test picture, who else lives there, and the household's cash-flow needs once a parent enters care. There is no single right answer. There is a right answer for each family, and it should be written down before the move.
Yes. Many of the most useful decisions are made in the first three to six months of entry. Earlier is better because some structuring takes time, but it is rarely too late to add value.
Both, where appropriate. The advice is given to the client, with the family present where the client wants them. Powers of attorney and decision-making capacity are handled with care.
Continue reading
- Financial planning overviewThe pillar page. How a Statement of Advice is delivered.
- Centrelink optimisationAge Pension, asset and income tests, and how aged care interacts.
- Retirement planningPension phase strategy that often precedes aged care.
- Superannuation adviceWhere the super balance fits into aged care funding.
- SMSF advice and lendingWhat happens to the SMSF when a trustee enters care.
Information on this page is general in nature. It does not take into account your personal objectives, financial situation, or needs. Read the relevant Product Disclosure Statement and consider whether personal advice is appropriate before acting on any information here.
Time to write the aged care plan?
An initial conversation is free and obligation-free. Bring whatever you have. We will work through what is missing.