Retirement Villages & Elder Law

We can all take steps to simplify the management of our financial affairs, predetermine the type of health care we are comfortable with, and ensure our hard-earned assets are structured to our greatest advantage as we age.

Elder law considers the issues that arise during this important phase of our lives. We offer a range of services to help you transition from retirement to beyond. We can review your Will and estate planning needs and implement strategies tailored to your individual needs. If you are considering retirement village living, we can help you to understand the different options available so you can make an informed decision about your future living arrangements.

Aged care advice

Retirement villages are operated by private enterprises or community organisations with accommodation and service levels varying significantly between each. Laws in each state govern the relationship between operators and residents and set out the legal and disclosure requirements of operators.

Aged care is regulated and assessed under Commonwealth laws. Entry into a retirement village does not result in an automatic entitlement to aged care services. Aged care services are government funded and potential recipients must first be assessed.

It is important to understand the lifestyle, legal and financial implications when considering retirement village living or entry into an aged care facility. These decisions are often made with the assistance of family members, a legal advisor and financial professional.

Retirement village law

There are several ways for people to own or occupy premises in a retirement village. People often occupy retirement villages under long-term leases, under license or through strata title ownership.

Under a long-term lease, the occupier is entitled to live in the property for a period of time pursuant to the lease (commonly 99 years). The property developer maintains ownership of the property, but the lease can be transferred by the occupier. Beyond the lease agreement, a ‘service agreement’ sets out the terms and conditions regarding the services provided. Long-term leases usually call for a trustee company to be appointed to take care of the financial aspects whilst a manager is appointed for day-to-day village management.

Under a license, the property developer again maintains ownership of the property, but the occupier provides a long-term loan or donation in return for the right to occupy the property. This can be a more cost-effective approach as the cost of entry is substantially lower. The downside however is forgoing the benefit of capital gains the property attracts as the market matures.

Strata title ownership is the most secure form of occupation with the added benefit of body corporate membership, granting certain rights to contribute to the management of the retirement village. The downside to this approach is a higher cost of entry due to stamp duty on the purchase, however, the advantage is accruing capital gains on the property as the market further matures.

Checklist when considering retirement village living

Entering into a retirement village contract is an important financial and lifestyle choice. If you are considering retirement living, we recommend that you:

Make enquiries and shop around for a retirement village that offers the accommodation and services you need given your age, health status and interests.
Scrutinise the facilities and services on offer – they should be sufficient for your needs, but you should not be paying for the upkeep of golf courses, tennis courts and swimming pools if you do not enjoy any of these activities.
Ensure you are provided with mandatory disclosure documents from the village operator before signing a contract.
Understand your financial commitment under the residence contract including initial contributions, ongoing payments and fees and exit fees. You may wish to consult a financial advisor to assist with this.
Read the by-laws and rules carefully so you understand what is expected of the residents as well as any restrictions, for example, regarding pets, visitors, and car parking.
Ask other residents about the village you are considering and discuss your decision with your family.

We always recommend seeking the advice of an experienced lawyer whilst reviewing alternative retirement villages and certainly prior to signing any documents regarding occupation. We can also assist you with interpreting the Retirement Villages Act 1999 and can provide you with a full understanding of your legal position.

Managing and protecting your assets, ensuring your retirement and beyond is as comfortable and fulfilling as possible, and that future medical and lifestyle decisions reflect your values are important issues for all of us.

If you need assistance, email [email protected] or call 07 3855 8880 for a no-obligation discussion and for expert legal advice.