Seeking aged care residence for yourself or a loved one can be a confusing experience. Many facilities require significant amounts of paperwork that can be overwhelming. This blog is intended to outline some key features of the process of entering into an aged care agreement.
What should I expect?
The process of entering into aged care agreements often involves execution of the following documents:
Key Feature Statement
This discloses information specific to the room, and is not required to be signed by the proposed resident. It usually discloses information about the room type, features of the room and relevant amenities, access to common areas, and approximate pricing and payment arrangements.
Pre-Admission Resident Agreement
This usually outlines the state of affairs before the resident enters the accommodation. It contains recitals such as the details of the care provider, the resident and their representative/attorney/next of kin and the relevant dates of the care arrangement and room details. The agreement also usually outlines the payable deposit. The Agreement can take a form similar to a Heads of Agreement in commercial transactions.
Permanent Resident Agreement (AKA "Resident Care Agreement")
This is the crux of the aged care agreement and operates as would a normal contract. This document is more significantly detailed than the Pre-Admission Resident Agreement, as it outlines arrangements for services, fees and the rights and responsibilities of the care provider and the resident. For example, it covers things such as how regular payments are to be made, the provider’s policies and practices for fees and complaints, outline of any services the resident is to receive, and circumstances in which the resident could be asked to leave.
This agreement should most definitely be reviewed by an independent legal advisor prior to the resident signing. Legal advice can explain to the resident how onerous the agreement is and point out any particularly important terms of which the resident should be aware.
For what can I be charged?
Aged care facilities are legally only allowed to charge a resident fees that relate to their care. For example:
- Basic daily fee – covering living costs, eg. meals, power and laundry.
- Means-tested care fee – this is only payable by the resident if the Department of Human Services determines based on an assessment of the resident’s income and assets.
- Accommodation payment – this may be funded in part of wholly by the Government, but may be payable entirely by the resident if in private care. The resident may be required to pay a refundable deposit as a bond.
- Fees for extra or additional services – depending on whether the resident chooses a high standard of accommodation or additional services, they may be required to pay other fees.
It should be remembered that there are annual and lifetime caps in place to limit the total payable of means-tested care fees.
What else should I be aware of?
Permanent Resident Agreements also often contain a warranty provision, which states that the resident has sought and received independent legal and financial advice and understands the obligations and requirements of the arrangement. The nature of Permanent Resident Agreements is such that it is worth also seeking independent financial advice to comprehend the significant (and often extremely complicated) financial commitments and fee structures contained therein.
How can I learn more?
Melva Cameron.
Lawyer.
- Property Law & Conveyancing
- 03 9890 3321
- Email Address: m.cameron@robinsongill.com.au
Melva’s experience includes compulsory acquisitions, adverse possession applications, boundary re-alignments, sales and purchases of commercial and industrial, residential and rural land and leasing.
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