Forman Financial Services

Aged Care Strategy – Accommodation Payment – Drawing down DAP from RAD

This can benefit people who:

  • do not have sufficient cashflow to meet aged care expenses

Potential Benefits:

  • Paying DAP by drawing down from the RAD, reduces the amount of ongoing fees that have to be met from the persons cashflow
  • Where a person pays part of their accommodation payment as a RAD, aged care facilities must agree to the drawdown of DAP payments from the RAD

Things to be aware of:

  • Drawing down the DAP from the RAD will reduce the balance of the RAD over time.
  • DAP payments will increase over time as the outstanding balance of the accommodation payment increases
  • If RAD balance reduced to nil, the person will need to pay additional RAD or commence paying DAP from regular cashflow
  • Need to consider estate planning implications of reduced RAD payable on death

Aged Care & Home Care can seem complex.  We have a special offer for general advice for $225.00.
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