Suppose your granny is in the 1%

Suppose your granny is in the 1%

What occurs on Boxing day every year is what is known in the aged care industry as ‘Granny Dumping’ when the family realises that Granny is no longer independent.

Yep there are about 221,000 residents in aged care & of those about a quarter are aged under 65.

I.e. It might not be  Granny or Pop but maybe Molly falling of a ladder or your son king hit from behind or a car accident or a birth incident.  

As the family has gathered over Christmas there is  the realization that something needs to be actioned. However dropping her off at the closest aged care place is not as simple as maybe dropping of the family poodle at the RSPCA before going away on holiday.

As government is nearly always involved then there are usually four steps & a system to follow & paperwork at each step. Then there are technical terms that you need to comprehend.

1.       Before entering an aged care facility your health must be assessed to decide which level of care is appropriate. The assessment can be performed by any doctor, nurse or social worker who is a member of an Aged Care Assessment Team (ACAT).

1: A2.     There are two types of residential aged care facility – hostels (‘low level care’) and

nursing homes (‘high level care’) which is why the health assessment.

The main difference between hostels and nursing homes is the  level of care provided. Hostels provide personal care, accommodation and some level of nursing care, whilst nursing homes provide 24-hour nursing care and accommodation.

 3.       On entry to a facility, you will be required to pay depending on the type either

a.       an accommodation bond (a once only lump sum) or

b.      a daily  accommodation charge (ongoing).

 4.       Regardless of what type of facility you choose there will also be

a.       a basic daily fee to pay and

b.      there may be a ‘daily income-tested fee’.

 Some facilities offer you a higher level of service or a higher standard of accommodation or food. If you have chosen a higher level of services there will also be

c.       An ‘extra service’ fees payable.

  As we asked Sheila recently if she had to

·         which facility does she want to go to.

·         What upfront payment will she need to pay?

·         How much will we pay for ongoing care?

·         What happens to the pension?

[This is particularly relevant if the house is sold as it could be an asset that pays an income.]

·         Do we keep the home or should we sell it.

[there are conditions & exemptions as you would expect]

·         What does Granny leave in her estate?

·         Do we pass the hat around for her in the meantime?

·         And plenty more.

·         Do you want to pay the minimum daily fees or do you want the maximum care?

[ be warned as the facility does NOT need to accept you]

 

If Granny is in the top 1% financially then she most likely  have done her estate planning. However 60% haven’t made wills & Enduring Powers of Attorney & other powers are usually sensible.

As there are many variables then there is no single solution  for each Granny or Pop.

The easiest solution may not be the ideal as there are consequences affecting the pension & the costs vary accordingly.

 The ideal is frequently to retain the health card & the full pension. Sheila also deserves the best care.

We also comment on those unfortunate 25% many who have an accident that it can take years to move through the court system & then the solicitor might take 30% of the lump sum awarded.

Hence some tailored income protection up to 75% of your income is preferable to what the government offers in the meantime.

 

Welcome to call on 07 3848 1088 or email or visit our websites & be warned over Christmas there is up to a 3 month wait  for ACAT.

  

John McAuliffe