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Joy recently moved from her own home to live with Mandy and her family following the death of her husband. However, she needs full-time care and together Joy and Mandy have decided that Joy will move into an aged care facility.
- 50 years old
- Has Enduring Power of Attorney for her mother Joy who is age 82
- Joy is living with Mandy and her family but is unwell and needs full-time care
Mandy used the My Aged Care website to explore some aged care facilities close by and found a place they like. They have been asked to pay a Refundable Accommodation Deposit (RAD) of $550,000 to secure a place for Joy. Mandy is worried as neither her family nor Joy have this amount of cash available and she doesn’t want to sell Joy’s home to pay the RAD.
She is also concerned whether Joy will have sufficient cash flow to meet day-to-day expenses, including the basic daily fee and means-tested care fee that the Joy will need to pay to the facility.
Mandy met with a UniSuper Private Client Adviser who prepared a Statement of Advice.2 She was immediately relieved to hear that she doesn’t have to pay the $550,000 RAD in full upfront.
The advice also:
- explored options for Joy to pay the RAD.
- compared her cash-flow and asset position should Joy keep her home, sell her home or rent it out.
- outlined strategies to increase Joy’s Age Pension, reduce her aged care means-tested care fee and maximise her cash flow.
Mandy’s Private Client Adviser continues to provide financial advice support to Mandy and her family helping them through this difficult transition.
1 Mandy is a hypothetical member, but the relevant facts are based on a real member. All advice provided to Mandy is based on the specific circumstances detailed in this scenario.
2 Mandy paid an advice fee for this specific advice. Refer to the Financial Service Guide for more details of fees payable for Comprehensive Advice.
The information contained in this case study is not legal, taxation or accounting advice. It is intended to provide general advice only. It has been prepared without taking into account your objectives, financial situation or personal needs. Prior to making any investment decisions, you should speak with a financial adviser to consider whether this information is appropriate for your needs, objectives and circumstances. You should also obtain a copy of the relevant product disclosure statement (PDS) prior to making a decision regarding any investment in any financial product. Whilst care has been taken in the preparation of this information, the accuracy or completeness of the information is not guaranteed. This case study was prepared and issued by UniSuper Management Pty Ltd ABN 91 006 961 799, AFSL No: 235907, which is also the administrator of, and wholly owned by, the UniSuper Superannuation fund (ABN 91 385 943 850). UniSuper Limited (ABN 54 006 027 121) is the trustee of the fund.