Law Talks Episode: Preparing for aged care and selling the family home

Robyn: Good morning and welcome to another edition of 4CRB’s Law Talks, and today we’re joined by Bindy Marshall, an accredited aged care professional and aged care paralegal at Attwood Marshall Lawyers. Thanks for joining us this morning, Bindy.

Bindy: Thanks for having me, Robyn.

Robyn: Well, today we’re discussing one of the biggest decisions and most emotional transitions many people face as they age, making the decision to sell the family home due to declining health. Whether the home becomes physically difficult to manage, or additional care is needed, it’s a significant life change. Bindy, the family home is one we all cherish. How do people typically cope with the emotional weight of having to leave it behind when moving into aged care or perhaps a retirement village?

Bindy: Yes, it can be a really tough transition. The family home often represents decades of memories. Raising children, celebrating milestones or even grieving losses. But as we age, it can start to feel more like a burden than a haven. Maybe the stairs are becoming difficult, or the maintenance is too much, or the home just doesn’t suit our needs anymore. For many, the idea of selling feels like losing a part of their identity, but recognising the need for change, especially when your health is on the line, is an important part of the journey.

Robyn: So how can people manage the grief or the sense of loss that often comes with leaving a long-term home?

Bindy: Grief is a normal part of letting go, but it’s not all about the bricks and mortar itself. It’s about the life we’ve lived there.

People may feel dismissed if others say, oh, you’ll love your new place without acknowledging what’s being lost.

If you’re downsizing or moving into care, allow yourself the time to emotionally prepare. If possible, a good tip is to aim for a 60-day settlement instead of 30, to give yourself time to breathe and sort through personal belongings and decide what stays and what goes and what might need to be donated.

It’s also important to have an experienced property lawyer to manage the sale. They’ll make sure everything runs smoothly, and the settlement isn’t delayed, which can be critical if aged care placement or financial planning depends on those sale proceeds.

If something simply like visiting your new home, or taking measurements, or imagining where your furniture can go, often helps the change feel more real and a little bit more manageable.

Robyn: Yeah, perhaps reframing the move not as the end of something, but as the beginning of a new chapter might help.

Bindy, I imagine the stress increases when moving to aged care where space and options are more limited.

Bindy: Oh gosh absolutely. When transitioning to residential aged care, you often only have a space for a few treasured personal items, not the contents of an entire house. I’ve seen many people try and squeeze four bedrooms worth of furniture into a small room or a unit, and that is overwhelming.

Robyn: I can imagine.

Bindy: Working with a professional downsizer can really help. They understand what will realistically fit and they offer emotional support through what can be a really sentimental process.

Robyn: Bindy, what can help people manage the stress of these moves particularly when the transition was unexpected or happens quickly?

Bindy: Look whether the move is planned or it happened suddenly after a hospital admission, preparation is the key, even if it’s happening on short notice.

If the move is sudden, some important steps are number one, notify your power of attorney if you have one so they can assist with the decisions and support you.

Number two, engage an accredited aged care professional. They can help with the admission paperwork, explain the aged care fees and rules. An aged care lawyer can also review the aged care contract before you sign anything and explain your rights and responsibilities, so you’re comfortable with what you’re signing.

And number three, consult a financial advisor who specialises in aged care. They can guide the decisions like selling the home or renting the home, and how it might affect your Centrelink entitlements. That’s really important.

And number four, don’t forget hospital social workers are also a great resource and can provide support in finding placement options as well.

Robyn: And Bindy if it’s the attorney who has to make the decision, say selling the family home to fund aged care, what’s important for them to know? And how can they support the person going through this transition?

Bindy: Look, it’s a big responsibility. If the person no longer has capacity and their enduring power of attorney is activated, that attorney must act in the best interest before selling the home.

They really should obtain a letter of incapacity from the doctor to confirm the principal can no longer make their decisions, get legal advice to understand any restrictions or considerations, particularly with retirement village contracts which may have significant exit fees. Number three, speak with a financial advisor to compare the options to see what supports the person’s care needs, while preserving their assets where possible.

Understanding how the sale impacts the pension entitlements and aged care fees is crucial. The goal is to keep the person in a financially stable position and ensure their care needs are fully met along with their personal preferences and wishes.

Robyn: Yeah, it really is a team effort. Legal, financial, medical, all working together to support the person transitioning into care.

Bindy: Exactly. It isn’t just something people should face alone. Having a trusted support network, whether it’s family, professionals or both, can really ease the burden and make a very emotional time a little easier to manage.

Robyn: Well, I hope today’s conversation has provided some insight and reassurance for our listeners. Thanks for joining us, Bindy.

Bindy: Oh, thanks Robyn.

Robyn: You’ve been listening to law talks here on 4CRB which you can hear every Friday morning from 9 o’clock.