If you are seeking Government assistance to help meet the accommodation and care costs of an aged care home, investing in Sureplan Gold funeral bond may be beneficial. To determine if you are eligible for Government assistance you will first need to complete an Income & Assets Test undertaken by either the Department of Human Services (DHS) or Department of Veterans’ Affairs (DVA). DHS or DVA will advise you of the result and the amount (if any) of the Government’s assistance towards the costs.
If it becomes apparent during the above process that you need to reduce your assets to maximise the Government assistance, consider investing in Sureplan Gold. Sureplan Gold is a funeral bond and, under current regulations, a contribution up to $12,250 may not be assessable under the Income and Assets Test.
The Income & Assets Test therefore can apply similarly for aged care assistance as it does for pension entitlement. An investment in Sureplan Gold, up to the allowable limit of $12,250, is an Exempt Asset for pension purposes. Therefore for some people an investment in a funeral bond may both help to increase their pension as well as their aged care financial assistance.
In regards to the pension Assets Test, be aware that there are changes coming into force on 1 January 2017 (refer our blog of May 5 2016). The asset test free amounts are increasing but the penalty for exceeding the limits is doubling, from $1.50 to $3.00 per $1,000 in excess of the relative limit.
For more information on how Sureplan Gold may be of assistance please call John Turner on 1800 817 105, or email john.turner@sureplan.com.au.