Moving into aged care may have most of their wealth tied up in the family home.

For a couple, major decision include:

  • Should the spouse stay in the family home?
  • Should the spouse downsize and move to a more manageable property or perhaps a retirement village or in permanent care as well?

For a single person, the decisions can be more complex because they may need to use the capital invested in the home or rental income from it, to fund their new accommodation in the residential aged care service. A major decision becomes what to do with the former principal home? 

The decision process needs to take into account the financial as well as emotional implications.

The diagram below highlights a range of issues that should be considered when comparing the outcomes of the available options:

The role of the financial adviser is to help the clients understand the financial implications of their choices and the best way to structure the selected arrangements to manage cashflow and overall net wealth. Ultimately, it is the client’s choice which way to proceed as it is not just about the bottom line.

Please give me a call on 0410 377 873 or email me at

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