If you are in a blended family, it is common that a Will may be drafted that allows your executor to acquire an interest in an aged care facility for the benefit of your surviving spouse.
This can become a problem because frequently the contract with the retirement village or aged care facility may require the accommodation bond to be refunded to the estate of the life tenant.
Care should be taken to ensure that there are suitable arrangements made in writing either between your executor and the surviving spouse or directly with the aged care facility to ensure the bond is refunded to your estate.
Another issue that can arise is the manner in which the accommodation costs are paid. The costs can be paid as a refundable accommodation deposit or as daily accommodation payments, which are not refundable. The accommodation costs may be paid as a combination of both.
Problems can arise if the resident stops paying the daily accommodation payment, as the facility often has the ability to deduct unpaid amounts from the refundable accommodation deposit.
It is important that your Will is tailored to your specific needs and that proper thought is given when choosing an appropriate executor. Contact our accredited Specialist in Wills and Estates, Manny Wood, for further information.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au
This article is intended to be for information and educational purposes only and cannot be relied upon as legal advice. The information may not apply to your circumstances or to your particular situation. If you need specific advice or you have any questions, we welcome you to contact us directly.
