For most women, family is the most important aspect of their lives and in a normal working day it is not uncommon for time to be spent taking care of the children as well as tending to the needs of elderly parents. As a result of these dynamics, today's women are often referred to as members of the "Sandwich Generation".

With our ageing population we are witnessing an increasing number of elderly parents moving in to live with their adult children. Not always because of frail health, but sometimes simply to be closer to family members and be more actively engaged in each other's lives.

For life planning purposes we are also seeing an increasing number of elderly parents transferring the legal title of their principal residence to their adult children whilst retaining a life interest in that property. This is commonly referred to as a ‘Granny Flat' arrangement and does not necessarily need to result in the residence being a separate dwelling on a parcel of land owned by family where the elderly person can live.

To be recognised as a ‘Granny Flat' for Centrelink/Department of Veterans' Affairs purposes, it needs to meet the following criteria:-

• A right to occupancy for life or a life interest in a private residential property is provided; and
• Payment is made for the right of occupancy in either cash, transfer of property/assets or a combination of both; and
• Neither the granny flat resident (nor their partner or any company or trust they control) may be the owner of that property.

Everyone's family is uniquely different and despite our many personal life challenges, many women simply cannot ignore the needs of loved ones, especially elderly parents. The thought of placing mum or dad into an aged care facility is sometimes too hard to bear and this is where the ‘Granny Flat' arrangement may be able to help.

There are different ways of creating a ‘Granny Flat' interest. For example, a person may:-

• Transfer the legal title in their home to another person in exchange for the right to remain residing in that property; or
• Fund the construction costs of accommodation on another person's property in exchange for the right to reside in the newly constructed property; or
• Provide part or all of the purchase price of a property that will be registered in another person's name in exchange for the right to live in that property; or
• Pay a reasonable amount to a person in exchange for the right to reside in a property that they own.

Any one of these options will need careful consideration before proceeding to establish a ‘Granny Flat' interest. Both financial and legal advice will need to be sought as well as family discussions held to make sure that it is the right decision for everyone involved.

The financial considerations of a ‘Granny Flat' interest are extremely complex and sometimes even more so is the emotional strain this can have on you, your parents and your family. It is never easy to acknowledge that your parents are ageing and losing the confidence and ability to independently look after themselves.

With this in mind, the best approach can sometimes be to openly discuss these issues with family much earlier in life giving all parties the ability to express their wishes and their concerns therefore giving everyone involved more time to weigh up the advantages and disadvantages of establishing a ‘Granny Flat' interest later in life.

Whilst women tend to nurture others first and look after themselves second, this is one situation where you will need to make sure that you do not forget your own priorities in life. Make sure this decision not only helps you provide a safe and loving environment for your parents but also enables you to maintain a sense of self and purpose.

Theresa Chapman is a Certified Financial Planner passionate about helping women achieve financial security. For more information email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit www.sppgroup.com