How your deposit is settled when you leave aged care
Lump sums that you pay for a room in residential aged care come back to your estate. This is what you need to know about when and how your money is refunded.
One of the most misunderstood areas of residential aged care is how accommodation payments – called refundable accommodation deposits (RADs) – work. What many people don’t realise is that a RAD is not “lost” money as the amount you pay is refundable when you leave care or die.
The provider does not pay you any interest on your money while you live in care – but payment of the lump sum does save you the cost of the daily fee that would otherwise be payable. Edwina Pickles
