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MELBOURNE 03 9601 6800

EMAIL jps@jpalmer.com.au

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F Palmer & ME Palmer
Trading as Joseph Palmer & Sons
AFS Licence 247067 · ABN 29 548 490 818

Case Studies

Case Study 1

 

This case involved a self-funded widow requiring care. Initially our clients (her children) tried 24 hour home care but eventually this became unworkable. They arranged to move their mother into an aged care facility and planned to rent out her home for the first year so as to give her the emotional comfort of knowing she still had her home.

The facility was asking a RAD of $650,000 and, in addition to the daily fee and extra services fee, their mother’s income and assets (including the home and rent), meant they were liable for the maximum Centrelink means tested fee of $71.26 per day or $25,940 per year and no entitlement to an age pension.

The children engaged our services wherein $150,000 was negotiated off the RAD and, following the implementation of an appropriate strategy, we were able to have the means tested fee reduced to $14 per day, saving $20,900 per year and qualified our clients’ mother for a part age pension.



 

Case Study 2

 

This case involved an elderly lady who needed to move into an aged care facility. Her assets included the unit she lived in and $200,000 in the bank. She received a full age pension.

 

The RAD at the aged care facility was $500,000, requiring that her unit be sold to raise the funds. The unit sold for $1,250,000 leaving her with $950,000 cash in the bank after the RAD was paid. As a result, her pension entitlement was gone and she further incurred a means tested fee of approximately $25,800 per year.

 

In most instances, the elderly hold their pensions very dear and gain a sense of security from the regular payments (whether they are actually needed or not). The seniors’ health card is also valuable at this time of life. Losing both often becomes a source of much angst, adding to the trauma of selling their home and moving into aged care.

 

We were engaged, and through appropriate financial structuring and use of investment instruments tailored to this lady’s situation we were able to reduce the means tested fee and have her a part age pension and the health card reinstated.