Forman Financial Services

Aged Care Strategy – Accommodation Payment – Paying an additional RAD after 28 days

This can benefit people who:

  • are not permitted to pay the full accommodation payment as a RAD due to the minimum permissible asset requirement

Potential Benefits:

  • Aged care facilities cannot accept a RAD that leaves the person with less than $48,50014
  • For couples, 50% of the combined assets of the couple are measured against the $48,500 threshold. This assessment can result in the person wanting to pay a higher RAD, but being prevented from doing so as only half of the couple’s assets are included in the assessment.
  • Where a person pays an additional RAD 28 days after entering aged care, the minimum permissible asset rule also does not apply

Things to be aware of:

  • When determining the person assets, the market value of their former home is included
  • If the person pays an additional RAD after 28 days from entering aged care, ensure they have sufficient funds to meet their expenses. If a member of a couple, consider whether the other member of the couple will require aged care funding

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