Can you qualify as a ‘low-means’ aged care resident if you have substantial assets?
When loved ones suddenly need to enter residential aged care, families often face some tough decisions.
The situation can be even complex when early onset dementia is in the picture. However, as one couple discovered, seeking expert financial advice can result in not only substantial financial savings but also peace of mind.
Shaun Ganguly, a specialist financial adviser at Aged Care Financial Planning, recently assisted a husband and wife with this very situation. The husband, diagnosed with early onset dementia, was in urgent need of higher-level care.
The couple had substantial assets, including a family home worth $4.5 million and $1.2 million in superannuation. They assumed they would never qualify for any Age Pension or income support payments.
As the wife was aged 59 and under the Age Pension age, Shaun developed a strategy involving the inversion of the wife’s superannuation accumulation phase and a strategic transfer from the husband’s superannuation into the wife’s name.
While there was a slight increase in taxation within the superannuation fund, the family saved over $100,000 without having to sell the family home.
“They were considerably less stressed, found the right facility, and knew that they might need to readdress this strategy in a few years. But for now, everyone has been looked after very well,” said Shaun.
Another example of the importance of seeking professional, specialised financial advice when navigating the complexities of aged care.
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