Q&A: Retirement villages and the cost of frail care
What are the tax implications when your village repurchases your life right?
Q: A relative, Ms L, is giving up her home in a retirement village and moving into frail care. She bought life rights in the retirement village scheme about 17 years ago.
The life right gave her the right to occupy the unit for the rest of her life but should she leave the unit for whatever reason (move out, die or move into frail care), the retirement village would repurchase the life right and pay the same amount that she paid for it back to her or to her estate. ..
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