Perspective

If your family member needs aged care, you will likely face a significant inequality in bargaining position. You will probably be negotiating with a large national or global corporation. 

Admission Agreements for aged care homes are not all the same. One (and there could be more) of the major providers in New Zealand has extraordinary provisions in its standard agreement, such as an unlimited third-party guarantee, a charge over all the resident’s present and future assets, and a litigation costs clause that could be invoked to ruin an estate. No sensible person could agree to these provisions, and at least two major competitors of this provider do not have them in their standard documents, which suggests that they are unnecessary. 

Don’t accept the old lie that unreasonable provisions are merely standard. Don’t believe it when you are told that the plain meaning of the words is not the meaning at all and wouldn’t be used against your family.

Aside from the documentation, beware of renovation. Undisclosed plans to renovate can lead to the effective eviction of your loved one and typically a marked increase in cost if they return to the upgraded facility or survive temporary relocation during the work.

Do some research before you are forced into a rushed decision by a fall or other severe physical or mental decline and seek advice regarding unfamiliar documents. If you have no time, you will have no choice.

Finally, this note is not about retirement villages; that’s a whole other story, as they say. This note concerns the residential and hospital care stages for those unable to live quasi-independently.