A family may wish to avoid paying an accommodation bond, but a bond may secure a better standard of accommodation (although it does not always do so). On the other hand, some families may wish to place more than the required bond payment into the aged care home as a way to ‘hide’ assets.

If an accommodation bond arrangement is entered into, it should be structured in a way that protects the interests of the older person, not their adult children. Sometimes your client may wrongly perceive these interests to be the same. They may choose to ignore your advice and wish to structure the arrangement to benefit others. You should nevertheless make certain you have advised them on all options.

• What are the tax implications of accommodation bonds?
• Is a house considered to be an asset if one moves into aged care?
• What if it is rented out or sold?