The aged care process can feel like a whirlwind. When a loved one suddenly needs care, families are often forced to make quick decisions which are often emotionally charged ones at that! Unfortunately, this is when financial mistakes are most likely to happen. As experienced aged care financial advisers, we’ve seen the same traps catch families time and again.
Here are five common scenarios that can end how to avoid them with the right advice.
1. Rushing Into a Facility Without Understanding the Costs
It’s natural to focus on finding a bed quickly – but not all facilities are priced the same. RADs (Refundable Accommodation Deposits), DAPs (Daily Accommodation Payments) and other fees can vary drastically.
Tip: Before you sign anything, make sure you fully understand the payment structure, your options, and how it fits your loved one’s financial situation. A specialist can model out the real cost of each option.
2. Assuming You Have to Sell the Family Home
This is the most common misconception we hear – and one of the most emotional decisions to make. In many cases, the home can be retained, rented out or excluded from means testing under certain rules.
Tip: Don’t rush into selling until you’ve reviewed all the implications. An aged care adviser can show you side-by-side outcomes – financially and emotionally.
3. Getting Advice Too Late
By the time many families come to us, they’ve already committed to a facility or payment strategy – and missed out on key opportunities to structure things more efficiently.
Tip: Seek advice early – ideally as soon as you know aged care is on the horizon. You’ll have more choices and avoid unnecessary stress later on.
4. Not Factoring in Centrelink Entitlements
Aged care fees are often tied to income and assets. Without proper planning, you could lose key entitlements like the Age Pension, or fail to claim everything your loved one is eligible for.
Tip: We work directly with Centrelink on your behalf to maximise entitlements and avoid overpaying.
5. Overlooking the Impact on the Family
Who’s managing finances now? What happens to the estate later? How will care costs affect siblings or other family members? These are the questions that often go unasked – until it’s too late.
Tip: Aged care financial planning should include family dynamics, estate planning, and clear communication between all involved parties. We can provide referrals to solicitors if needed.Need help navigating the aged care maze? At Aged Care Specialists VIC, we help Melbourne families understand their options clearly and avoid costly mistakes. We work compassionately and thoroughly to ensure your loved ones are cared for – without financial regret. If you want peace of mind, reach out to Claudia today.
