Consider keeping your home to pay for frail care

Making arrangements to ensure that you will be able to afford frail-care if and when you might need it ranks right up there with regularly updating your will – it is not something most people relish, says Berry Everitt, CEO of the Chas Everitt International property group.
“But similarly, it is something worth doing to relieve your children or other family members of a lot of personal and financial anxiety.”
Places in old age homes and retirement villages, and especially those with good frail-care facilities, are scarce and waiting lists are usually long, he notes. “Full-time frail-care can also cost up to around R25 000 a month or even more, which can be a serious problem for retirees who are living on a fixed income, or for the families that might need to subsidise those costs.
“However, if it is done properly, the family home you own can be used as an asset to help pay for frail care. We believe the best option is to pay off the home loan on the property as soon as possible and then, if it becomes necessary, to let it and use the monthly rental income to contribute to the cost of frail-care. This situation can be made even more favourable if you own more than one property.”
Writing in the latest issue of the Property Signpost newsletter, Everitt says the biggest advantage of this type of arrangement is that the property will still form part of your estate, although landlord issues, such as who will accept the rental payments, channel the money to the frail-care centre and see to maintenance of the property do need to be clarified with your family ahead of time.
“You should of course also consult your attorney and your accountant or financial planner to discuss matters such as ownership and inheritance, who needs to hold a power of attorney to make decisions should you fall ill, and how to take care of paperwork to reduce tax and legal liabilities – for your heirs as well as yourself.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    • 21 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 21 May 2018
      With sectional titles growing in popularity, an increasing amount of homeowners simply do not have the garden space to install a tool shed in their backyard.
    • 18 May 2018
      Home improvements are a great way to add value to your property, but not all of us have bottomless pockets for a full-on renovation. Lucky for us, there are plenty of affordable DIYs that can spruce things up over a free weekend.
    • 18 May 2018
      The need for large office spaces is slowly eroding as more and more employers choose to allow their staff to work remotely. As a result, the home business model has grown in popularity, with many new entrepreneurs choosing to start their business from home rather than in a business district. But, what are the legal implications of operating a business in a residential area?
    • 18 May 2018
      Proxi Smart Services Pty Ltd, a company that deals with the day to day administration of property transfers while the conveyancer attorneys perform the legal side of transfers, lost its bid for the court to allow them to do business in this regard.
    • 17 May 2018
      If you’re a first time buyer, then you are probably only just beginning to realize how expensive furniture can be. That three-piece lounge suite you’ve had on your “Dream Home” inspiration board probably seems like nothing but an unrealistic fantasy to you now. But, a little bit of financial discipline mixed with a dash of smart shopping can go a long way towards helping you furnish your fantasy.
    • 17 May 2018
      In recent years the demand for sectional title apartments – both for rent and to purchase - in Rivonia, which is considered to be one of the most affluent residential and suburbs in Johannesburg, has been incredibly strong.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us