Many families with elderly relatives are reviewing the available aged care services and deciding to care for their parents or elderly relatives in their home. This can be a great solution for both parties. The homeowners often receive cash or assets in exchange for care and creating a dedicated area of their home. It’s a good solution for the elderly relatives because they receive care and companionship at an increasingly lonely stage of their lives.
Consider a Formal Agreement
On the surface, caring for elderly relatives in your home represents a viable solution, but as time moves on and situations change, it can become more challenging. For example, all parties need to know what to do when the relative’s care needs become increasingly demanding, if one of the carers becomes ill or if the home owners wish to buy another property. In these situations having the foresight to create a formal granny flat agreement initially can ensure there are no surprises for either party.
Avoiding misunderstandings or expensive legal disputes is best achieved with the preparation a Deed of Family Arrangement as a formal granny flat agreement that covers some common events that may occur. Our experience shows that a small initial outlay can avoid expensive legal battles with other family members in the future. Having a formal granny flat agreement can also aid in demonstrating compliance to Centrelink and ensure that any funds paid or assets transferred do not affect pension and related benefits.
We regularly work with clients who are exploring granny flat agreements, and we are well placed to advise you on what should be included and how to incorporate the agreement into overall Estate Planning. If you would like to know more, click here or call us on 6492 6655 for a complimentary initial telephone consultation.