There’s an investment you may not have considered that can achieve good returns, and it’s guaranteed that you’re going to need it one day: your funeral.
In aged care, the means testing of your assets is tiered. If your assets are between $59,500 and $201,231, you will have 17.5 per cent of your assets included in the means test, so for every $1000 spent on your funeral could save you $175 a year in aged care fees.For example: Jack is a full pensioner with assets worth $150,000. If he pays $25,000 for his funeral, his aged care costs will reduce by $4375 a year.
If you’re thinking about paying for your funeral, or buying a funeral bond, it’s important to realise that one may exempt more than the other. If your funeral and final resting place will be a large sum of money, then a funeral bond is not going to cover it.