KNOW YOUR RIGHTS… TAKE YOUR 28 DAYS!

At Orange Financial Planning, we see many people who feel lost in navigating the aged care system. We provide comprehensive retirement and aged care advice to help with the big decisions.

How you choose to pay for your room in aged care is an important decision, and with large dollars involved, it is one that should not be rushed. Know your rights and take time to get advice.

LUMP SUM OR DAILY FEE?

When moving into residential care, your first financial challenge is likely to be deciding how to pay for your room – a lump sum or a daily fee. Some people feel pressured to make this choice quickly, but we advise taking the time to make a considered decision.

You (and not the aged care provider) have the right to choose which option you want to take. The legislation gives you 28 days after moving into care to make this choice.

In our experience, problems arise when the aged care provider does not follow the rules, or families don’t understand their rights and make the choice too quickly.

WHAT CHOICES DO YOU HAVE?

The room price is set by the aged care provider, while the government sets the interest rate that converts this lump sum into a daily fee. If you choose to pay a lump sum, the care provider must give you six months to rearrange your assets to pay the fee.

WHEN DO YOU NEED TO MAKE THE CHOICE?

No matter what an aged care provider tells you, they should not force you to make the choice before you move into care. In fact, you have the legal right to take up to 28 days after moving into care to make the decision. At the time of entry, when you sign the Resident Agreement, you only need to agree on the room price.

Despite the rules, we see many cases where providers encourage residents to make the choice when accepting the room offer. The provider might have good business reasons for taking this stance, but the rules do not allow it.

If paying the lump sum works for you, there may be advantages to accepting this option. But make sure you have taken time and sought advice before deciding.

CAN YOU CHANGE YOUR MIND?

If you are unsure on the best option, you might choose the daily fee because you retain the option to change your mind and pay a lump sum later. But if you make the choice within the 28 days to pay a lump sum, the provider can hold you to this choice.

MAKING A FULLY INFORMED DECISION!

Advice can help you to make a fully informed decision. However, not all advice is good advice. Aged care financial advice is a specialist area. The rules change constantly, as do the available strategies. You don’t need extra stress wondering if you’ve received quality advice! We specialise in aged care advice, so if you need help, please reach out before making any decisions.

MAKE AN APPOINTMENT TODAY!

Give us a call at Orange Financial Planning TODAY to see how we can help you with quality retirement and aged care advice. Kim Bryant is a Financial Planner with Orange Financial Planning who is Aged Care Accredited and holds a Masters FP, Grad Dip FP, and Assoc FPA

Tyron Mitchell

Contact us today on (02) 5310 4477 or drop us a line HERE!

See here for more information on Orange Financial Planning services…

WHAT WE DO – RETIREMENT PLANNING                                              

WHAT WE DO – AGED CARE

Also check out our blog… PLANNING FOR AGED CARE – WITH EARLY PREPARATION AND GOOD ADVICE 

 

Mitchell Advice Pty Ltd ABN 44 625 356 872 t/as Orange Financial Planning is a Corporate Authorised Representative of Synchron AFS License No 243313. Unless specifically indicated, the information contained is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek personal advice from a financial adviser.