Recently a client called me and wanted to know what to do with his mother’s situation.

Although aged care can be a complex beast it’s important to work through the variables carefully to make sure you and your loved ones get what’s best.

The client’s situation was as follows:

Two brothers have a 90 year old mother who is starting to become frail. Both their living situations are not adequate to cater for the mother’s needs. The brothers were concerned about aged care facilities options, the sale of their mother’s home and whether the proceeds of the sale would impact one of the brother’s centrelink benefits.

In this particular situation we analysed and discussed the following options:

• To sell mother’s home/ or rent it out (Impact to pension and options with accommodation)
• Proceeds of funds from sale – lump sum vs income
• Impact to beneficiaries
• Estate planning issues
• Level or care options (low level vs high level)
• Costs and fees associated

By analysing the options available, and more importantly the pro’s and con’s of each, we were able to help our clients make the right decisions. Without the burden of all the financial questions they were free to take the best action possible for their mother.

If you are approaching decisions like these please don’t hesitate to contact us. We’d be happy to help.

Frank Marcaccio
Authorised Representative of AMP Financial Planning Pty Limited