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, rented or to 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