The professional aged caring industry can be confusing for families particularly the first-timers.
From the first step up to the last when the elderly finds an aged care residence, there are many chances to commit mistakes. That is why aged care financial planning companies exist—they can help with the finances.
However, most of all, there are reliable residences for aged people available. The following are some of the most common pitfalls of families looking for professional aged caring residences that are better off avoided.
There is no will or estate planning
It is ideal for someone who is ready for the aged care residence to have a valid will. However, it might surprise you that often there is no will if not the will is outdated. Without any will, the family and children are likely to experience distress and conflicts. It’s wise to check the status of the will of your loved one who is about to enter a residence for older people.
Selling the family’s residence without checking the repercussions on the pension
This is the most popular mistake committed by families: selling the family home to pay for the accommodation bond. Most families do this to take care of the professional aged caring cost, but this can cause problems with the retirement pension. Any amount left from the sale is considered as an asset of the Centrelink. It means that if there is some cash left after paying the accommodation bond, this may be gone too.
The lack of power of attorney
It’s not a complicated thing to acquire this document yet many families forget to secure it until it becomes too late. Always make it a point to secure an enduring power of attorney for the senior parents or relatives before they are sent into a facility that is caring for elder people.
A POA cannot be issued once the senior relative loses mental capacity due to several illnesses such as stroke, dementia, and Alzheimer’s. When this happens, it will be difficult for the family to manage the finances.
Not negotiating for the accommodation bond
It’s common that aged care facilities charge $500,000 or even more for the accommodation bond. Even if it will be refunded 14 days after death minus the retention amount, it still means a lot of money.
The truth is that aged care facilities, such as a facility that provides Footscray area respite care, are willing to negotiate regarding fees and charges. This is especially true when it involves huge amounts of money. The family can seek help from a financial planner who will create a structure of payment for the costs. This can bring down some fees or even have them waived.
No financial advice and planning
Most families become surprised when they hear about aged care financial planning. Those who are without assets or only less do not need this. Nevertheless, families with two or more of the following need to have financial advice and planning. This includes trusts, superannuation income, pension income, a family home, secondary properties, annuities, significant cash holdings, and shares and investments.
The palliative care nursing at Arcare is something you can consider. Arcare can give you referrals for a reliable financial planner. For more details, visit at https://arcare.com.au/melbourne-aged-care/arcare-portarlington/.