When Aged Care Decisions Feel Overwhelming, Clear Advice Changes Everything

Introduction

Moving into aged care is rarely just a financial decision. It is often triggered by changes in health, safety or independence, and it can be an emotional and stressful time for families who are suddenly required to make complex decisions under pressure.

At Heard Financial, we regularly support families during these pivotal life transitions. Our role is to bring clarity to an often-confusing system, reduce financial stress, and help families feel confident that they are making the right decisions for their loved ones — both now and into the future.

This case study highlights how our structured, hands-on approach helped an elderly client and her family move into Residential Aged Care with certainty, security and peace of mind.

A Look at the Situation

Our client was an elderly woman who, due to age and health concerns, reached a point where remaining at home was no longer safe. After careful consideration, both she and her family agreed that moving into Residential Aged Care would provide the level of care, support and supervision she needed.

Financially, her situation appeared relatively straightforward. She owned her home outright, had a small amount of savings, no debt, and was receiving the Age Pension. However, like many families in similar circumstances, the complexity of the aged care system quickly became overwhelming.

The client and her family were unsure how the entry process worked, what costs applied, how those costs were assessed, and what would happen to the family home. They had heard conflicting information and were anxious about making decisions that could negatively impact long-term affordability or reduce assets unnecessarily.

Our Approach: Clarity, Structure, and a Clear Funding Strategy

At Heard Financial, we believe that clarity is the foundation of confidence — particularly during emotionally charged life transitions.

We began by taking the time to explain the aged care system in clear, simple language, walking the family through the entire process step by step. This included how assessments are conducted, how fees are calculated, and what options were available to fund both upfront and ongoing costs.

We then conducted a detailed analysis of the client’s personal financial position and assessed it against aged care and Centrelink legislation. This allowed us to provide advice that was not only technically sound, but practical and tailored to the client’s real-world needs.

Rather than offering a one-size-fits-all solution, Heard Financial presented the family with a range of strategies, clearly outlining the advantages and disadvantages of each. This empowered them to make informed decisions aligned with their priorities.

Based on the client’s circumstances, we recommended selling the family home — a tax-free transaction — and using the proceeds to pay a fully refundable accommodation deposit of $750,000.

Following the sale, surplus funds increased the client’s assessable assets, which resulted in a reduction to her Age Pension. To manage this, we assisted in investing the excess proceeds into low-risk investment structures, designed to generate reliable income while maintaining access to capital and preserving long-term security.

With the client’s consent, Heard Financial also worked directly with the aged care facility to ensure that fees were calculated correctly from the outset. This proactive approach helped avoid delays, confusion, and the possibility of the client being charged higher fees while waiting for Centrelink confirmations.

The Outcome

With clear advice and a structured plan in place, the family was able to move forward with confidence.

As a result of Heard Financial’s guidance:

• The client secured a place in an aged care facility located close to her children
• The $750,000 accommodation deposit was preserved in full and remains refundable to the client or her estate
• Ongoing care costs were clearly understood and manageable
• Surplus funds were invested conservatively to support long-term living expenses

Most importantly, the advice removed the financial uncertainty from an already emotional transition.

Why This Strategy Made a Meaningful Difference

Had the client chosen to pay her accommodation costs as a daily payment instead of a refundable lump sum, the cost would have been approximately $58,350 per year, with no refund of capital.

By structuring the entry into care appropriately:

• The client preserved her asset base
• Long-term costs were significantly reduced
• Financial flexibility and security were maintained

This approach ensured that the client’s finances were positioned to support her care needs for the rest of her life.

The Difference We Made

While no financial strategy can remove the emotional challenges associated with moving into aged care, the right advice can dramatically reduce stress and uncertainty.

Through Heard Financial’s hands-on and compassionate approach, the family gained:

• Confidence in their decisions
• A clear understanding of the aged care system
• Reassurance that their loved one’s care was affordable
• Peace of mind knowing assets were protected and managed appropriately

By handling the calculations, paperwork and communication with third parties, Heard Financial allowed the family to focus on supporting their loved one — rather than navigating complex financial processes alone.