Aged Care Strategy – Accommodation Payment – Drawing down DAP from RAD 29 Aug 2018

Blog / Aged Care

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. 
Please click here for more information.
For more information on this subject feel free to get in touch with us click here 
To receive free updates on relevant information click here 
To read more about specialised service offers for Aged Care please click here


Disclaimer and Warning
The information above is of a general nature only.  It should not be used as a source to make financial decisions.  It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status.  We recommend that if you are looking for advice on this matter, you should contact us .


Recent News Aged-Care Financial-Planning SMSF Special-Disability-Trusts Aged Care Strategy – Accommodation Payment – Drawing down DAP from RAD
SOLOMON FORMAN SMSF SPECIALIST ADVISOR SMSF SPECIALIST AUDITOR Forman Financial Services SOLOMON FORMAN CERTIFIED FINANCIAL PLANNER® Forman Financial Services
 
© Forman Financial Services 2014. Design & Developed by maxmoment interactive