Paying Rad

One of my children is prepared to lend me money towards paying the Rad. If a legal document is drawn up to this effect, will Centrelink accept it as money owed by me or will it treat it as part of my assets?

There were comments in blog around May 2017 about family members lending
money to a parent to pay the RAD, and whether the loan is included in assets.
Perhaps not as straight forward as some may think. Might depend on whether
the loan is secured (eg by mortgage) or not ? If anyone is interested in doing thorough
research, consider looking at the legislation, guidelines and cases referred
to in the following, but also check whether there have been any changes since then.

What a pity it is that one’s last days with a loved one might be spent trying
to fathom the depths of such matters.

Best wishes.

Hi Mara,
Thank you for your question. I would absolutely seek detailed advice from an Aged Care Financial Advisor. Their detailed understanding of the Aged Care system and it’s legislation is what you really need here. They may be able to find a special caveat, or see that in your specific example you qualify for ‘x’.

Hi there, I’ve just submitted a similar question with a few other bits and pcs - my mother went into a nursing home last July 2017, and we did the same thing. The department of human services understood it was a loan and I even said that we could provide a mortgage document. But they said it is still considered as part of her assets even though it was a loan. I actually phoned them a few times and they told me the same thing, our means tested daily care fee increased.

Hi Verna,
Thanks for your question. It is our understanding that it would not be seen as part of your assets as it is a loan and you have the legal documents to prove it. Had your child gifted it to you, then yes it would be seen as an asset, but a loan is different. I would just call the My Aged Care division that looks after Income and Assets questions though to be sure. Their number is 1800 227 475. You’re able to ask question without creating a file with them and if you want to do this, just say you’re doing your research.
We hope this helps,
The Agedcare101 Team