The Random thought thread

[nomadpete]

A related 'Random Thought':-

 

We already have a tough system of wealth redistribution in Australia.

 

It's called Aged Care.

 

My Mother-in-law recently moved into residrntial care. This requires payment of $600k, plus other ongoing costs. So far we have already paid over $15,000 over the past couple of months.

 

So, the family home sold for $1.3 million. Less CGT because she had it for less thsn 20yrs.

 

Hooray, she's a millionaire! Meanwhile there are bills to pay along the way. Depending on her longevity, over half of her nest egg will be redistributed.

 

I haven't an issue with 'user pays' concept.

 

I am pointing out that perceived windfalls from selling a family home do not offer the luxury lifestyle that being a millionaire implies.

 

We all have to pay for the late stages of our lives. I prepaid by paying my mortgage during my productive years. But those who never achieved home ownership suffer financially most. They are given no reasonable choices in their autumn years.

[octave]

1 hour ago, onetrack said:

But at the end of the day, you can always cash in on that major value in your house, and purchase something smaller and newer and easier to maintain, such as an apartment.

I totally agree with this, but I guess I understand if others have a different view.  We downsized substantially at the age of 55 in order to retire while still young enough to actively enjoy life.  We are unconcerned about leaving an inheritance.  We have one son who, thankfully, is much more economically successful than we are, so he is unconcerned about whether he gets anything from us when we go.  Moving to a smaller place frees up time and money from maintenance tasks.  Throughout our working lives, we mostly pursued jobs we were interested in rather than money, and at times lived on little money.  Through super and the sale of our property, we are now quite financially secure, although not wealthy.

I do find it unfortunate when people have an asset that they may have struggled to pay for throughout their life, and are not able or willing to enjoy the fruits of it in their old age.

[octave]

3 minutes ago, nomadpete said:

This requires payment of $600k, plus other ongoing costs.

I am not sure what your situation is, but in my mother's case, she paid $250k.  This is a bond, though and will be returned upon her death (RAD refundable accommodation deposit). Other than that, she pays a monthly fee that is most of her pension, but she also gets an English pension 

[nomadpete]

Each nursing home has it's own schedules and individual contracts. There are cheaper options, but in her area, they were sterile environments devoid of dignity and proper care.

 

My MIL just wanted to die in her 'forever' house  that she and her late husband built together. But even before the dementia diagnosis, a combination of changing rules made it financially impossible.

 

It was never a viable farm - 100 acres of blacksoil in a rainshadow. But insurance & water licensing, and rates all kept rising fast over recent years.

[octave]

3 minutes ago, nomadpete said:

Each nursing home has it's own schedules and individual contracts.

 

True, but the government funding I thought was quite standard (the RAD and DAP).  I just ask out of curiosity, having done this twice, once for my dad and then again a couple of years ago for my mother, who is still in care.   We had the option of paying a variable refundable deposit, which would then determine her monthly accommodation fee. Bigger RAD equals a small monthly fee.  The lump sum deposit is returned in the end, though. 

[red750]

When I mentioned probate, I was referring to the filing fee. At present in Victoria the fee is $2,471.10 for an estate worth between $1 million and $2 million. $2 million to $3 million it goes to $4,942.10, and $3 million to $5 million it is $7,396.40, and so on to a maximum of $17,297.50 for an estate of $7 million or more. My property is estimated to be worth about $1.2 million according to the Domain Real Estate website, so I have a bit of wiggle room before it goes up. If my $20 million Powerball ticket comes up a winner, I will split it between the three kids who can then cover all the bills and anything I want to buy.

 

As you know, I live with my elder son and daughter. He was just starting primary school grade 1 when we moved here, and my daughter came here in a bassinet 15 months later. She was registered carer for my mother-in-law, and later for my wife, who had a palliative care nurse drop in a couple of times a week. She is now recorded as my carer, although all she has to do is the cooking. No nursing homes so far. The house is split between the three of them in my will.