Aged Care
Financial Advice
Aged care decisions involve some of the most complex financial choices a family will face, from RAD and DAP accommodation payments to the family home, Centrelink entitlements and ongoing fee structures. Getting the right advice early can protect your assets and reduce unnecessary costs.
HOW AN AGED CARE ADVISOR CAN HELP
Transitioning to aged care involves complex financial and emotional challenges. Seeking advice from financial advice specialists can provide valuable insights to manage the financial aspects of this change. Despite the challenges, transitioning to aged care can be a positive experience with the right preparation and support.
We will help you determine the best approach for you and your family, such as funding initial accommodation payments, structuring your cash flow, the benefit of tax offsets, consider your options regarding your family home, optimise Centrelink entitlements, reduce the impact on your life savings and estate implications. Our advisors will also review your superannuation and investment strategies to ensure they align with your aged care needs.
Our aged care advice covers:
- Accommodation payments – RAD, DAP or a combination
- Family home – sell, rent or retain
- Centrelink & DVA entitlement optimisation
- Cash flow structuring for ongoing care fees
- Tax offsets and aged care cost reduction
- Superannuation and investment strategy alignment
- Estate planning and wealth protection
Aged Care Financial Advisory FAQs
What is the difference between RAD and DAP in aged care?
When entering residential aged care, families are typically asked to choose how they’d like to pay for accommodation. A Refundable Accommodation Deposit (RAD) is a lump sum payment that is refunded when the resident leaves the facility. A Daily Accommodation Payment (DAP) is an ongoing daily fee paid instead of, or in combination with, a RAD. It’s also possible to pay a combination of both.
The right choice depends on your family’s financial situation, available assets, cash flow needs and the impact on Centrelink entitlements. Speaking with an aged care financial adviser before committing to a payment structure can help ensure the decision suits your circumstances.
Should we sell the family home when a parent moves into aged care?
This is one of the most common and consequential decisions families face. Whether to sell, rent or retain the family home can affect aged care fees, Centrelink and DVA entitlements, ongoing cash flow and estate outcomes – and the right answer is different for every family.
There is no one-size-fits-all approach, and a rushed decision can have lasting financial consequences. An aged care financial adviser can model the impact of each option before your family commits to anything.
How does Centrelink means testing affect aged care fees?
Centrelink and the Department of Veterans’ Affairs (DVA) assess a resident’s income and assets to determine how much they contribute toward their aged care costs. The outcome of this assessment can affect the means-tested care fee, accommodation costs and Age Pension entitlements.
Understanding how assets are assessed, and how to structure them appropriately, can make a significant difference to the ongoing affordability of care. An aged care financial adviser can help you understand your assessment and explore your options before fees are set.
When is the right time to seek aged care financial advice?
Ideally, before any major decisions are made. Families often come to us after a parent has already entered care, but the earlier advice is sought, the more options are available. If a parent has recently received a diagnosis, been assessed for care, or been offered a room at a facility, that’s the time to speak to an adviser.
Even if a move into care is still some time away, early planning around superannuation, the family home and estate structures can make the transition significantly smoother when the time comes.