Granny Flat Arrangements

Granny Flat Arrangements (GFAs) are many and varied across Australia and have become increasingly popular due to the rise in housing prices and an alternative to entering the residential aged care system or assisting in delaying entering the aged care system for as long as possible.

Essentially, in most types of GFAs, the elderly person such as a parent enters a living arrangement with another younger person who is commonly their child or another trusted person.

Examples of GFAs based upon using the proceeds of the sale of the elderly person’s home include but are not limited to:

• Renovating the younger person’s property or building a granny flat, typically at the rear; and

• Discharging a mortgage on the younger person’s property with the elderly and younger person living in the same property; and

• Purchase of a property for the younger person and the older person to live in.

  
  

Another GFA type includes transferring the whole or part of the older person’s property to the younger person.

Typically there are social security issues that need to be addressed so that older people are not disadvantaged. The process of preparing a written GFA assists in addressing those issues and providing documentary support in dealings with Centrelink.

Please contact one of our Wills and Estates Team solicitors for an appointment.

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