Many people moving into aged care facilities do so following a hospital stay and are unable to return to their home. This burdens their family with having to quickly find a suitable aged care facility attend to dealing with household possessions and selling the property. This is a particularly stressful time for everyone.

For people considering moving from home into aged care, I suggest making the move sooner than leaving it too late. Here are some considerations which should help make the transfer easier for you and your family. 

1)        Where to start?  See an Aged Care Financial Planner

Start by consulting a licensed financial planner who specialises in the complex area of aged care. They will analyze your current financial position and help determine the quality of the care you can afford. They determine if your investments are suitable, advise if you should sell the family home and provide strategies to make your money last as long as possible.
As aged care is expensive, it is important to maximise any Government benefits and subsidies that may be available. The Financial Planner will help you understand those benefits and explain the aged care fees and payment structures. 
Once you have a clear understanding of your finances, you can then set about finding the appropriate aged care facility.

2)        Where to live?  See an Aged Care Placement Agent

Even if you know where you want to move to, people find an aged care Placement Agent a great help in making the move to a facility. A Placement Agent helps streamline the transition, so you do not have to navigate the complex system alone. 
They access your specific needs and preferences, then recommend appropriate residences based on their experience of helping other clients. This saves you from inspecting a vast number of facilities, a time-consuming and difficult task. 
They negotiate with the Facility to secure the best possible terms, pricing and conditions for you. With their experience, they should obtain a better deal than you would. 
The paperwork involved in moving into aged care can be overwhelming for someone navigating the process for the first time. They manage the application process, from submission forms to assessments to care arrangements. 
Using an aged care placement agent can make the transition so much faster, smoother and less stressful, for you and your family. 

3)        Consider the big costs - RADs and DAPs

If you don't qualify for Government assistance, the biggest single cost of living in an aged care Facility is the Refundable Accommodation Deposit (RAD). These vary depending on the location and quality of the facility. The RAD is refunded in full when you no longer live in the aged care residence.
If you don’t pay the RAD, you will be charged a Daily Accommodation Payment (DAP). The DAP is calculated at a variable interest rate (currently 8.3% p.a.) on the RAD. You can pay a portion of the RAD which would reduce the amount of the DAP. 
These payments are means tested. Depending on your income, the government may pay all or part of your accommodation costs. 
This cost is in addition to the other fees and charges made by the residential aged care organisation.

4)        Property taxes you may not have thought of

If you intend to retain your home, there are some additional taxes that may arise. 
If your Melbourne home is unoccupied for more than six months, you could be liable for the Vacant Residential Land Tax. Currently the rate is 1% of the property’s capital improved value for the first year then the rate progressively rises to 3% after three years. 
Your family home should be free from capital gains tax when it is sold. However, if you rent it, then after 6 years from the time you move out, you will lose part of this tax benefit. 
It is best to get some tax advice from your lawyer or financial advisor so there are no surprises for you or your family.

5)        Outsource the property sale to a Vendor Advocate

Most people sell their home when moving into aged care. This is a daunting prospect and often the biggest barrier to making the move. 
What to do with the belongings of a lifetime? How to fix the house for sale? Which estate agent to trust to sell the property? 
A good vendor advocate can help with these decisions and make the process easier and less stressful. 
We at Tower have been managing property sales since 2004 and understand the issues faced by people moving out of their home. 
We arrange for the sorting and storing of all possessions from the home, assess if the value of the property could be increased, and manage all the work required to get the property to market as soon as possible. 
We obtain marketing proposals from the two best local estate agents and assess which presents the better offering. We then work with the selected agent through the sales campaign until the property is sold and settled. 
If you don’t have the funds to improve your property for sale, we will pay those costs with repayment from the sale, so you can maximise the value of your home. 

As we manage the entire sales process, that is one less barrier to helping you move. You can relax and focus on what is most important, settling into your new home and community.

Regards, Robert Allanadale Director m: 0418 517 643