Top 10 FAQs About Aged Care

1 – What is a RAD

A refundable accommodation deposit (RAD) is effectively an interest-free loan to an aged care provider. It pays for your accommodation and entitles you to live in the aged care home. Similar to a bond paid to a landlord for the use of his unit as accommodation.

2 – Is my RAD safe?

Your RAD is guaranteed by the Australian Federal Government.

3 – How much can I expect to pay for a RAD?

The average size RAD can vary in city and regional areas. It is not uncommon to see RADs in the vicinity of $300,000 – $550,000. The aged care homes need government approval to charge more than $550,000.

4 – What if I do not have enough money to go into care?

Good planning with assistance from an accredited aged care specialist will guide you through this process. The government provides subsidies to aged care homes so that they will accommodate older folk with limited financial means. The laws were changed as at 1/7/2014 in order to make it easier for those with limited means to be accommodated in an aged care home

5– How do I find a suitable aged care home?

You can visit the government aged care website – www.myagedcare.gov.au and search for accredited homes in your desired postcodes. There are qualified Aged Care Brokers who can carry out this function on your behalf.

6– What if I don’t like this home?

If you are unhappy with the home you have chosen, you simply need to supply the home with a letter, giving them 7 day’s notice of your intention to leave and then move to the new home. It is always wise to try to settle any issues you have with the aged care home before moving.

7 – What happens to my RAD if I leave?

Your RAD is transferrable and will be forwarded to your new home by your existing home.

8 – What happens to my RAD should I pass away?

The aged care home has 14 days, after receiving probate form your executor, to pay the balance of your RAD to your estate. Should they take longer than the 14 days, they will be required to pay interest of the full amount until paid.

The aged care home has 14 days, after receiving probate form your executor, to pay the balance of your RAD to your estate. Should they take longer than the 14 days, they will be required to pay interest of the full amount until paid.

9 – Do I need to sell my home?

Not necessarily. You should seek advice. You may be able to retain, rent or sell your home. Some folk consider Aged Care Loans against their home to pay the RAD. It is always important to seek the advice from an accredited aged care specialist before making major decisions on the family home.

10 – Can I have a pet?

This will depend on the home. Some homes welcome small cats and/or dogs. Some homes have resident cats, dogs, chickens, birds and gold fish. Discuss this with the home before you enter.

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