When a parent suddenly needs aged care – whether after a fall, hospital admission or rapid health decline – families are often thrown into panic. You may be feeling overwhelmed, unsure what to prioritise, and worried about making the wrong decision. The good news? There is a clear pathway. The key is knowing what to do first – and what not to rush.
Firstly: Understand the Type of Care Being Recommended
If your parent is in hospital, you may hear terms like:
- Respite care
- Transitional care
- Permanent residential aged care
- Home care package
Before making financial decisions, clarify:
- Is this temporary or permanent?
- Is there pressure to move quickly?
- What alternatives have been considered?
Urgency doesn’t mean you skip planning – it means you prioritise the right steps.
There is no stupid question so don’t be shy to keep asking the medical team.
Step 2: Register With My Aged Care (If Not Already Done)
All government-funded aged care services require assessment through My Aged Care.
If your parent hasn’t already been assessed, this needs to happen urgently. Hospitals often assist with this process, but families should confirm:
- Has the assessment been completed?
- What level of care has been approved?
- Is it for respite or permanent care?
Without this approval, placement options may be limited. In my experience, these can happen reasonably quickly in a hospital setting.
Step 3: Don’t Sign Anything Financial Yet
This is where many families can make costly mistakes.
Aged care facilities will provide agreements outlining:
- Refundable Accommodation Deposit (RAD)
- Daily Accommodation Payment (DAP)
- Basic daily care fee
- Means-tested care fee
Under pressure, it’s tempting to sign quickly – especially if a bed is available.
However, how you choose to structure payments can significantly impact:
- Cash flow
- Age Pension entitlements
- The family home
- Long-term financial sustainability
Once agreements are signed and payments structured, changes can be difficult.
Pause. Get clarity first. (This is where you would engage someone like us – a financial advisor specialising in aged care)
Step 4: Understand What Happens to the Family Home
One of the first questions we are asked is: “Do we have to sell the family home?”
In many cases, the answer is no. But the correct strategy depends on:
- Whether a spouse remains living in the home
- Your parent’s asset levels
- Centrelink assessment
- Cash flow needs
Selling too quickly can create unnecessary financial consequences. Keeping it without understanding the implications can also be problematic.
This is where tailored advice matters. If you were to see us, we would lay all your options in black and white will enable you to make informed decisions and understand all the consequences.
Step 5: Consider the Impact on their Age Pension
Entering aged care can affect Age Pension entitlements.
Without proper structuring, families can experience:
- Reduced pension payments
- Higher means-tested care fees
- Missed entitlements
We regularly see people not receiving what they are entitled to simply because no one reviewed the numbers carefully.
Step 6: Get Specialist Advice Early
Urgency increases the risk of mistakes.
An aged care financial adviser can:
- Explain accommodation options clearly
- Model different RAD/DAP strategies
- Review the impact on Centrelink
- Advise on whether to sell or retain assets
- Liaise with Centrelink on your behalf
- Provide clarity in what often feels like chaos
We hear it all the time – families tell us they wish they had spoken to someone sooner. If your parent needs urgent aged care, the most important thing is not to panic. There is a structured process. There are options. And there are ways to ensure the financial side is handled properly while you focus on your parent’s and your own families wellbeing. If you would like clarity around your family’s situation, we are here to help. We work with families across Melbourne to simplify the process, explain options in plain English, and ensure financial decisions are made with confidence.
