Deciding to move to a retirement village is a significant life choice. When exploring retirement living options, it’s crucial to understand the differences between retirement villages and aged care services, ensuring you choose the option that best suits your personal needs and financial circumstances. Retirement village contracts can be complex and contain terms that impact your lifestyle, finances, and future planning. At 360Private Legal, our priority is to ensure you fully understand the contract you’re entering into, offering expert legal guidance to help you make informed decisions.
What Is A Retirement Village Contract?
A retirement village contract is a legal agreement outlining the terms of your residence in the village, the costs involved, and your obligations. Whether you’re exploring options for downsizing or preparing for future living arrangements, our team will go over every detail with you before you sign on the dotted line to ensure you fully understand the contents of the contract and what it means for you.
Our legal team works together with our financial planners to ensure your retirement village contract aligns with your long-term financial goals.
Components Of A Retirement Village Contract
When you’re reviewing a retirement village contract, there are several important factors to consider. These can often be complex, so it’s essential to have the right advice:
- Entry Fees – These are the upfront costs you’ll need to pay when you move into the village
- Ongoing Costs – weekly, fortnightly or monthly fees for maintenance, utilities, and village services can add up. We’ll ensure you know what’s covered
- Exit Fees (Deferred Management Fees) – These are often a surprise to people when they leave the village. We’ll break down the percentage that will be deducted when you sell your unit and what other fees will be payable
- Capital Gains or Losses – Some contracts allow you to benefit from capital gains on your property, while others do not. We’ll make sure you’re aware of how this works in your contract
- Maintenance and Repairs – Understanding who is responsible for maintaining your unit and the surrounding property is crucial, especially if there are refurbishment costs when you leave.
Tailored Legal Support For Your Retirement Living Decisions
At 360Private, we know that no two retirement village contracts are the same. That’s why our services are designed to suit you, and nobody else. Whether you’re entering a village for the first time or reviewing your current contract, we will ensure you’re informed and protected.
We are able to assist with:
- Contract review – we’ll go over your contract to identify any potential risks or hidden fees
- Financial impact analysis – we’ll explain how your retirement village contract could affect your pension, Centrelink benefits, and long-term financial health
- Asset structuring – whether you’re thinking of selling or keeping your family home, we can advise on the best course of action for your estate and financial planning.
Key Considerations And Potential Pitfalls Of Retirement Village Contracts
Before signing a retirement village contract our Legal team can identify, outline and explain some of the common pitfalls including:
- Complicated Exit Fees – these fees can be calculated in various ways and may escalate the longer you stay in the village. We make sure you understand the exit costs from day one
- Ongoing Costs – many residents are surprised by the increase in village fees over time. We’ll help you understand how these fees are structured and what to expect down the track
- Residence Rules – some villages have very detailed rules pertaining to the use of your unit and the common property. We’ll clarify these rules to ensure that there are no surprises
Financial Considerations For Retirement Village Living
We understand that choosing a retirement village isn’t just about lifestyle – there are other factors around your finances that should be taken into account. We can ensure that your finances are well organised, and all essential factors are taken into consideration:
- Means testing and Centrelink benefits – entering a retirement village can affect your pension and other government entitlements. We work with your financial advisor to ensure your contract is structured in a way that maximises all benefits that are available to you
- Superannuation and investments – if you’re drawing on your superannuation or other investments, we can provide guidance on how to manage these assets in line with your retirement village contract
- Estate Planning – deciding whether to keep or sell your family home is a big decision. We can help you with your estate planning and advise on the best course of action, considering the impact on your estate and your financial future
Secure Your Future With 360Private
At 360Private, we understand that entering a retirement village is a significant decision. That’s why we’re here to guide you through the process and ensure you’re fully informed at every stage. With our assistance, you can have peace of mind knowing that your contract will protect your financial and personal interests.
Contact us today for expert legal advice on your retirement village contract, or other aged care planning services.
