One of the toughest decisions when moving into aged care is whether to sell the family home or rent it out.
Not only does renting the house out delay making a decision to sell, the income generated can help with the cost of aged care accommodation.
Up until 1 January 2016 there was a potential advantage for people entering aged care to keep the family home and fund all or part of their accommodation costs in the aged care facility through rental income. The former home remained an exempt asset for pension purposes, and the rent received was also exempt under both the pension income test and the means tested care fees for aged care purposes.
Unfortunately, the rent is no longer exempt and other ways of paying the accommodation cost may have to be considered.
You can read our February Snapshot here.
If you would like to discuss your aged care funding options, in light of these changes please give us a call to speak to one of our advisers on 07 5562 2200.