It\u2019s a common question we hear when a family member needs to transition into an Aged Care facility, which in turn, begs other questions\u2026<\/p>\n
Usually, you are required to pay a deposit to enter an aged care facility and these can vary in size. \u00a0If you choose to keep the home, you may only be able to pay a part or none of the required Residential Aged Care Deposit (RAD.)\u00a0 This means you still need to fund the remainder and this can be done on an interest only basis, which in turn adds to the daily fees.<\/p>\n
The decision to keep, rent or sell the former residence is a big decision families face and in nearly every case, requires specialist financial advice. \u00a0Most specialist Aged Care Advisers will be able to provide a strategy paper that outlines the costs of various options and also highlight the potential CGT consequences when the house is sold.\u00a0 Naturally enough, there are also potential income tax consequences on the rental income received.<\/p>\n
For the purposes of your Centrelink pension, the home has a two-year asset exemption.\u00a0 Good news!\u00a0 However, note that any rent received WILL be assessed under the income test.\u00a0\u00a0For the purposes of aged-care, the house value will be included in assets up to $162,815 (capped) and rent will also be included in the means test.<\/p>\n
Each individual scenario can have a variety of moving parts, including taxation issues, pension changes, aged-care costs, cash flow impacts and estate planning to consider.\u00a0\u00a0It\u2019s a complex area, often more-so than first thought and it\u2019s definitely in your best interest to get specialist advice, and we’d be happy to help.\u00a0 Don’t hesitate to call on 07 5593 0855.<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s a common question we hear when a family member needs to transition into an Aged Care facility, which in turn, begs other questions\u2026 If you rent out the house out after they enter aged care, when does the house become subject to capital gains tax (CGT)? Does it start from the date they move […]<\/p>\n","protected":false},"author":3,"featured_media":1281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3,4],"tags":[21,32,35,25,33,54],"class_list":["post-683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aged-care","category-centrelink","tag-aged-care","tag-centrelink","tag-financial-adviser","tag-housing","tag-pension","tag-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts\/683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/comments?post=683"}],"version-history":[{"count":0,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/posts\/683\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/media\/1281"}],"wp:attachment":[{"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/media?parent=683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/categories?post=683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trustedagedcare.com.au\/newsite\/wp-json\/wp\/v2\/tags?post=683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}