Who Pays When the Money Runs Out? The Hidden Cost of Aged Care

Imagine this: Mum has a fall and is admitted to hospital with a fracture. The doctors tell you she's no longer able to return home and now needs residential care. A fancy word for "Rest home". You are now faced with another challenge—finding a rest home bed. We all know beds can be hard to come by. But let's say you find one, and you are happy with it. Then come the questions almost every family asks: How are we going to pay for it? When do we have to start paying? And what happens if we can't afford it? The reality is that while most of us plan for retirement, very few of us plan for longevity—for what happens if our savings need to fund years of residential care. Understanding the system, isn't easy either. It spans multiple government agencies, relies on decades-old legislation and case law, and is complicated enough that even lawyers can get it wrong. That's why I'm delighted to be joined by Theresa Donnelly, Head of Legal at Perpetual Guardian and one of the few people in New Zealand who truly understands how it all works. Today she'll explain how the Residential Care Subsidy works, when fees start and who pays them, why trusts can sometimes work against you, what happens while you're waiting for subsidy approval, and the difficult financial decisions many families are forced to make when the money starts to run out. Let's get into it. The Next Bit Host is: Hannah McQueen - Founder of Brightly Guest: Theresa Donnelly, Head of Legal at Perpetual Guardian Join our community! We love to hear your feedback and questions. Instagram: https://www.instagram.com/thenextbitpodcast/ Facebook: https://www.facebook.com/profile.php?id=61584248556816 TikTok: https://www.tiktok.com/@thenextbitpodcast YouTube: https://www.youtube.com/@TheNextBitPodcast Credits Director, Executive Producer & Editor: Arama Murray from Mention Direction Podcast Creator, Executive Producer & Host: Hannah McQueen Research & Production: Shelley Smith Additional Support: Billy McQueen