Bond rules confusing aged care residents
Advisers have been urged to clarify “confusing” bond rules under the Government’s new aged care reform program in order to protect their clients from undue distress.
Wealth management advisory firm Centric Wealth said there was a growing amount of uncertainty about the Living Longer, Living Better reforms, particularly around bonds.
Some aged care residents did not know the accommodation bond was held in trust and feared it might be lost, according to Centric Wealth adviser Louise Donald.
“The last thing most families need when investigating aged care or dealing with an estate is the surprise of extra costs or lost monies. That’s why it’s so important to ensure you understand exactly what you need to pay and what entitlements may be available,” she said.
“From 1 July 2014, retention amounts will not be deducted from accommodation bonds. Rather, the full bond amount will be refunded, which is also reflected in the new name for lump sum bonds from 1 July 2014 - 'refundable accommodation deposit’.
“It should also be noted that residents who elect to pay the bond by interest-only instalments will not receive any of this back from the nursing home on exit,” she said.
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