Q&A
Phil has been supporting his son after a workplace injury
Well done, but now it’s time to consider your own care
Q A few years ago, my son sustained a workplace injury. He had to change jobs and accept a significantly reduced income ($60,000pa). To counter this loss of income we developed a plan.
The plan involved him moving out of his rental property and moving back home, where he lives rent free. His income is now continuously invested in exchange traded funds for dividends and capital appreciation in an effort to build his wealth and income. In our plan he will also inherit my home so that he will have a place to live. The plan has worked well so far.
The problem is, I may become frail with advancing years and my home may be lost to pay for my care. The alternatives that I have considered are:
1. I help my son buy a unit (he would struggle with the costs of maintaining a property at this time); or
2. I gift a share of my home to him (probably a third) so that he could live here regardless of what happens to me.
I don’t know what to do and I would really appreciate your thoughts on our dilemma.
Phil, your son is both unlucky and lucky. Clearly, the work-related injury was traumatic and greatly impacted his earning potential and I am sure other parts of his life. But he is lucky when it comes to having your support and determination to build and help implement a long-term plan for him.
Moving home and
