For many Australian families, the decision to move a parent or loved one into aged care often arrives suddenly—prompted by a health crisis, a fall, or the loss of a spouse.

It’s a period marked by emotional strain, urgency, and confusion. The shift into residential aged care can feel overwhelming, particularly as it often involves complex decisions about finances, housing, and family dynamics—all under significant time pressure.

Common Concerns for Families
  1. Finding the Right Aged Care Facility
    Choosing the most appropriate facility is often the first hurdle. Families want a place that provides quality care, is close to family, and suits their loved one’s physical, medical, and social needs. However, the range of options and variability in fees, availability, and services can make this process daunting—especially when decisions must be made quickly.

  2. What to Do with the Family Home
    A key decision point is whether to keep or sell the family home. While selling can free up funds for aged care costs, it also has financial and emotional implications. The home may have sentimental value, and there are Centrelink and aged care means test considerations, depending on whether the home is kept, rented, or sold.

  3. Understanding the Upfront and Ongoing Costs
    Aged care fees typically include a refundable accommodation deposit (RAD) or a daily accommodation payment (DAP), as well as basic daily care fees and means-tested care fees. Many families are shocked by the potential size of the RAD—sometimes several hundred thousand dollars. Understanding how to structure these payments and whether they can be partially paid through existing assets or income is essential.

  4. Managing Government Benefits
    Moving into aged care can affect Age Pension entitlements and eligibility for other government support. Means testing is applied to determine care fees and can also reduce or cut off pension benefits. But with the right financial structuring, it may be possible to preserve or maximise government benefits.

  5. Cash Flow and Estate Planning
    Once in care, residents often have regular out-of-pocket expenses. Ensuring adequate cash flow to meet ongoing fees while preserving financial security is crucial. Families also want to know: What will be left for the next generation? Ensuring that assets are used wisely and that estate plans remain up to date is an important step during this transition.

Tips to Navigate the Transition
  • Plan Ahead Where Possible: While many moves to aged care are sudden, families who have explored options beforehand are often more confident and less stressed when the time comes. Start discussions early with your loved ones.
  • Visit Multiple Facilities: If time allows, tour several homes and ask about services, staff ratios, visiting hours, and fee structures.
  • Keep Emotions in Check: Acknowledge the emotional weight of the decision but try to approach financial decisions with a clear, objective mindset.
  • Assess All Funding Options: Consider how different assets can be used to fund aged care, including superannuation, investments, and the family home.
  • Review Wills and Powers of Attorney: Ensure legal documents are up to date to avoid complications during the transition or in the event of further health decline.

Seek Professional Advice

Aged care financial advice is a specialised field that combines aged care regulations, Centrelink rules, tax implications, and estate planning. A qualified financial adviser can help you:

  • Model the financial impact of selling or keeping the home
  • Structure aged care fees to suit your family’s situation
  • Maximise Age Pension entitlements
  • Ensure sufficient cash flow for ongoing care
  • Plan ahead to preserve as much wealth as possible for future generations

Getting the right advice early can ease the burden, protect your loved one’s interests, and provide clarity during a time of great uncertainty.

Final Thought

The move to aged care is one of life’s more challenging transitions, but with the right support, information, and advice, families can approach it with confidence rather than confusion. Don’t navigate this alone—reach out to a trusted financial adviser who understands aged care to ensure the best outcome for your loved one and your family.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

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Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.