There was another woman, whose mother wanted to move into an Aged care facility very close by, however the mother did not have the money to pay the Accommodation Payment, and the daughter was happy to pay it for her.

The aged care facility told her that her mother could stay as long as she could afford to pay the Lump Sum – RAD ($550,000), & the daughter told the facility that she would pay the RAD for her mother, & her mother became permanent that day (May 2017).

The aged care facility said you had better hurry & get the Means Test form into Centrelink, otherwise you will lose the bed to someone else. The woman sought advice from her financial planner (who did NOT specialise in aged care, but dabbled in it), but he advised the woman that her mother would be a supported resident, & that it would be cheaper if her mother was supported.  So, completed the Means Test form.

In August  2017 the response was received from the Dept. of Human Services advising that the mother was supported & didn’t have to pay an Accommodation Payment at all. The aged care facility then advised she would have to take her mother to another aged care facility because they will not accept supported residents. The daughter was surprised & unhappy, because there was no other facility nearby that suited their purposes.

The problem was the financial adviser, did not know enough about aged care, to know that he SHOULD have said, “It is cheaper for Mum to be a Supported resident, HOWEVER you need to check with the facility to ensure they will accept your mother as a Supported resident BEFORE we complete the form” because once it is completed & assessed, we cant change it in most circumstances”.

Consequently, they got an outcome they did not want & which could have been avoided, had they spoken to someone who does nothing else but aged care.

Many financial advisers dabble in aged care, but that is a bit like doing a first aid course & setting yourself up as a doctor or surgeon. Unless the financial adviser does nothing else but aged care, there is a risk they may not know the traps & pitfalls that we see everyday