Ageing or sick relatives

Case study: Looking after ageing or sick relatives

Taking care of ageing or sick relatives can place significant financial strain on the family who assume responsibility for managing their affairs. It is common for family to pay parents’ medical expenses by extending their own mortgage or taking out loans at a time in their lives when they are retired, semi-retired, or looking to retire. Often, all the familial wealth is tied up in the family home with limited funds to draw on.

Managing the financial affairs of relatives

Leslie approached StrategyOne Advice Network with a dilemma – her elderly parents were struggling to look after their property and wanted to move into a small apartment. With their children long departed, their house was too large for them and the maintenance was becoming far more than they could handle.

Leslie wanted to help them but, with limited discretionary funds, and her brother and sister also involved, was unsure on how best to go about it.

As Leslie was over 60 years old and fully retired, we advised her to access her superannuation funds to buy a unit. She would need to sell her parents’ house to recoup super funds before she turned 65 in order to receive maximum benefits with minimal negative repercussions.

Leslie discussed this with her brother and sister and they agreed on a plan. Leslie went ahead and withdrew the funds necessary to purchase a suitable unit. Her parents moved in while she and her siblings renovated their house and prepared it for sale. After it was sold, Leslie’s loan was repaid into her super account.

Wills and estate planning

Leslie’s parents’ wills were updated with a Testamentary Trust that would provide for Leslie and her siblings.

Setting up her parents in a new unit and reorganising their assets into a Trust gave Leslie and her family far more freedom and choices. Living in a unit made Leslie’s elderly parents’ lives much easier, which in turn, made Leslie’s life easier.

Call StrategyOne today to arrange your obligation-free meeting: 02 9419 5233.

StrategyOne Advice Network is an authorised representative of Fitpatricks Private Weatlh Pty Ltd, AFSL No. 247429, ABN 33 093 667 595 (“Fitzpatricks”).

The information in the above Case Study is of a general nature only and is not intended as a personal advice. It does not take into account your particular investment objectives, financial situation and needs. Before making a financial decision you should assess whether the advice is appropriate to your individual financial situation, needs and objectives. We recommend you consult a professional financial planner who will assist you.

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