Client Background
Janet, a 79-year-old widow and client, approached us for guidance regarding her children’s proposal for her to sell her fully-owned house valued at $480,000. Her children suggested that Janet move into a larger family-owned property to live with them. The underlying intention was for the children to receive their inheritance early, thereby avoiding future estate complications.
Challenges
The primary concern for Janet was the potential impact on her government retirement benefits if she sold her home. Additionally, Janet valued her independence and was hesitant to make a move that might compromise her financial security. The children believed that living together would provide Janet with better support, but Janet was not fully convinced.
Approach
As Janet’s performance coach, we engaged in a series of discussions to understand her values, needs, and long-term goals. We also conducted a financial analysis to forecast the impact of selling her property on her retirement benefits and potential care needs in the future.
We explored the emotional aspects tied to her home and her need for independence, aligning these with her financial well-being. The possibility of leveraging home equity for future care needs was also considered as an alternative to outright selling.
Outcome
After careful consideration, we advised Janet to retain ownership of her home. This decision supported both her emotional well-being and her financial stability. By not selling, Janet maintained eligibility for her retirement benefits and preserved the home’s equity, which could be utilised for care services if required in the future.
Her children were counselled on the value of Janet’s autonomy and the financial implications of their proposal. They came to understand the significance of allowing Janet to make decisions that supported her sense of independence and financial security.
Conclusion
Janet’s case emphasises the importance of a holistic approach to retirement and inheritance planning. It highlights the need to balance financial benefits, personal values, and family dynamics. By prioritising Janet’s independence and security, we ensured that her retirement benefits remained intact, providing her with peace of mind and a stable financial future.
If you have a parent or friend who could use some assistance with managing their retirement and estate planning affairs feel free to reach out to Shane or any of the Inspired Money Team on 08 6222 7909.
This article was a case study based on a real client of ours but for the purposes of this case study and to maintain their privacy names have been changed. The case study was written by Director & Senior Adviser Shane Mitchell and provides general information that should not be considered personalised financial advice. If you have specific questions or concerns book a session to review your situation or any other financial planning issue by contacting Shane directly on 08 6222 7909 or book a meeting directly via his booking page.
