Arranging for aged care is not as straightforward as most people would like to imagine. Complex emotions get in the way of significant decisions, which often lead to stressful situations. One critical decision that most people struggle with when arranging for aged care is financial planning. For instance, most people do not hesitate to buy a life insurance policy but find it challenging to plan for their aged care needs. Notably, aged care in Australia can be quite expensive; therefore, seeking professional help from a financial advisor is essential. This article highlights ways a financial advisor helps with aged care planning.
Illustrate Government Subsidies on Care Costs -- Aged care can be quite expensive for ordinary people, which might explain why most individuals do not bother to talk about it. However, what people do not know is that the government subsidises aged care costs up to a specific limit. Ideally, the Australian government pays a given amount for each person receiving aged care. The government has even gone further to pay for supplements for some specific needs. However, a financial advisor will tell you that you are only entitled to the subsidies if you reside in government-approved home care or residential care. It will help you save a tidy amount.
Discuss Estate Planning -- When a loved one enters an aged care facility, the refundable accommodation deposit paid upfront is repaid to their estate upon their passing. Ideally, a loved one should also think about revising their will if they have not done so. However, it is easier said than done, and which is why a financial advisor is crucial. For instance, if an elderly loved one has lost the legal capacity to update their will, enduring power of attorney must be invoked to determine whether they want their estate divided. Furthermore, a financial advisor includes the refundable accommodation deposit in the updated will, which is something most people forget to do.
Negotiating with Aged Care Facilities -- Although the government expects you to partially or fully pay for your aged care, it pays to shop around regardless of your financial position. The reason is that aged care facilities charge differently, giving you room to negotiate. A financial advisor is well placed to do it, and they can cut back thousands of dollars with the right strategy. For instance, some aged care facilities charge additional service fees for luxury services, such as bi-weekly massages. If a loved one does not benefit from the services, your financial advisor will point it out and eliminate the cost.
To learn more, contact a resource that offers aged care financial advice.
The blog covers the idea of financial planning from the perspective of the client’s perspective. It will look at the benefits and risks of certain financial decisions and help readers to work out where the gaps are and how they can be closed. Financial planning is about planning for your future life. It’s not about just money, it’s also about work, family, savings and retirement. I'm not a financial expert but I've always been extremely interested in this area. I've done lots of reading about the sector and the various factors which are taken into account when planning your financial future.