Whilst the long life is something to be celebrated, health-care boosted resilience can mean a long and often unexpected wait for an inheritance greatly diminished by care costs.
Practitioners have stated that often during the estate planning process clients will cite inheritance from their parents as an asset in their estate, however the cost of healthcare may dwindle this bequest dramatically – in some cases down to nothing.
The average age of death for Australian men is 80, and women even later at 84. Many parents despite being in their 80's may live for an additional 10-15 years and possibly outlive their adult children.
Whist in the past many counted their parents' inheritance to be included in their estate, to leave behind for children or loved ones, this may no longer be a possibility.
Australia has the third longest life expectancy in the world, and this will only grow with further health care developments. The Australian Institute of Health and Welfare figures have revealed that the ''completed length of stay'' for those who are permanently resident in a care home is 146 weeks – or almost three years.
The cost of residential care varies between $35,000 - $66,000 per year (two-thirds of this is usually covered by the government, dependent on income). This can be incredibly costly and may eat into a large part of what someone expects to leave behind for his or her loved ones or what a beneficiary expects to inherit.
Those who believe they may be inheriting a great amount from their parents or loved ones now really need to take care they do not become reliant on such a bequest. They should still focus on financial planning for retirement and building up their own portfolio to leave behind for their children.
Furthermore, provided you still have capacity, if the amount you are leaving behind has been greatly diminished by care costs, you may wish to have a look again at your Will or consider writing a new Will to take these changes to your estate into account.
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If you are considering planning your estate or making a will contact us today - it is important to seek expert legal advice as quickly as possible.
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