Cash flow monitoring...................................................................................................................10

[Where aged care facility quote has been done AND RAC/DAC applies]

Once these changes are in place, we recommend that you will pay the Basic Daily fee of $XXX per day ($XXX per year) plus a Refundable Accommodation Charge of $X and / or a Daily Accommodation Charge of $Y>. We recommend your daily charge be paid from your cashflow / specific asset. This is based on our estimate of your combined means test assessment which is explained in more detail in the Appendix to this SoA.

[Where aged care facility quote has been done AND RAD/DAP applies]

Once these changes are in place, we recommend that you will pay the Basic Daily fee of $XXX per day ($XXX per year), <a daily means tested fee of $X> <plus a Refundable Accommodation Deposit of $X and / or a Daily Accommodation Payment of $Y>. We recommend your daily Payment / Charge be paid from your cashflow / specific asset / RAD. This is based on our estimate of your combined means test assessment which is explained in more detail in the Appendix to this SoA.

Inflow

Age / DVA Pension

Account Based Pension

Annuity Income

Investment Income

Rental Income

Other Income

Cash flow surplus / deficit Outflow

$XX Normal living costs $XX Basic daily fee $XX Daily Accommodation Payment / Charge $XX Means tested fee $XX Additional Service costs $XX Other expenses $XX $XX $XX $XX $XX $XX

$XXXX

[Where aged care facility has not been selected]

In order for us to finalise your cash flow assessment, you will need to select your Aged Care Service and provide us with a quote of the indicative accommodation costs. We can then provide advice on the balance of <Refundable Accommodation Deposit and Daily Accommodation Payment> OR <Refundable Accommodation Charge and Daily Accommodation Charge> that is best to ensure you have adequate cash flow available. Based on calculations and recommended asset restructure, we estimate that you will need to pay the Basic Daily fee of $XXX per day ($XXX per year) <and a daily means tested fee of $X>.

Benefits:

 An aged care facility can provide you with the level of care you need.  [Where age care costs are known and accommodation cost payable] By paying your accommodation costs as a combination of a lump sum and a daily fee, you will have sufficient cash flow to <meet your living expenses and> pay your aged care fees. <RAP>Your refundable accommodation deposit is asset test exempt from the age pension means test <and increases your age pension entitlement>.  [Age pension] By restructuring your assets as recommended, we estimate that your age pension entitlement will increase by $X per fortnight and your aged care daily costs combined would decrease by $X. This is an overall saving of $X p.a. if you implement our recommendations.  By maintaining your home, it will be preserved for your beneficiaries / your spouse/protected person can continue living there / and it will be exempt from asset testing OR it will be exempt from asset testing for the age pension for the first two years <where appropriate>.  Your home value is capped for means test assessment purposes.  Renting out your home will provide rental income to help meet your living and aged care costs.  [Where RAD/RAC to be paid] The annual and lifetime caps on means tested fees can help manage the fees you pay.  [Where RAD/RAC to be paid] Your refundable accommodation deposit / charge will be paid to your Estate upon death.  [Sell family home] By selling your home you will have enough cash to pay your refundable accommodation deposit / charge which will help to reduce your daily accommodation payment / charge.

Points to Consider:

 Please refer to detailed advice recommendations following on in this SoA regarding: <delete as appropriate> o Investment Bonds o Asset Gifting o Lifetime / Term certain Annuity o Funeral bond/s  The aged care fees you pay are determined by the Department of Human Services and will reduce the income you have available for your normal living expenses.