STRATEGIC ADVICE

There are strategies that may be employed to minimise the financial impact of a person’s entry to permanent aged care. Being able to consider these strategies long before the potential entry date is a great advantage over trying to handle the entry on a ‘crisis basis’.

Strategic decisions include:-

  • How to deal with the interests of any protected person
  • Keep the home empty, rent or sell it.
  • Down-sizing property value to liberate cash and retain home-owner status
  • Unwinding a member/trustee from an SMSF before loss of cognitive ability
  • Choosing which assets/monies to direct and pay all/part of the RAD
  • CGT issues on disposal of assets now, or in the future
  • Potential tax on superannuation benefits paid to adult, non-dependant beneficiaries
  • How much to pay of the RAD, alternative opportunity cost analysis
  • Centrelink/DVA impacts of alternative strategies
  • Short-term and long-term opportunities in gifting assets
  • The use of annuities and insurance investment bonds to manage assets/income values
  • Planning for the entry of the second partner to permanent Aged Care