Information Centre · Probate & Estate Administration
Refundable Accommodation Deposits and Deceased Estates: What Executors Need to Know
How a Refundable Accommodation Deposit interacts with a deceased estate — provider correspondence, probate, timing, records and beneficiary communication for Victorian executors.
Key points
- A Refundable Accommodation Deposit (RAD) is a lump sum paid to an aged-care provider for accommodation and, on the resident's death, any remaining RAD balance is generally refundable subject to permitted deductions.
- The refundable balance is typically paid to the deceased resident's estate, which means the executor — not the family generally — is usually the correct recipient once entitled to act.
- Aged-care providers commonly require sight of the death certificate and, in many cases, a grant of probate before releasing significant RAD balances; requirements vary by provider and by the size of the balance.
- Executors should obtain the RAD statement, the Resident Agreement and the Accommodation Agreement, reconcile any DAP, Basic Daily Fee, means-tested contributions and extras, and record the RAD refund in the estate accounts.
- Family disputes about aged-care costs or RAD refunds are best resolved with clear records, prompt provider correspondence and, where necessary, legal advice — not by side-arrangements outside the estate.
- Parke Lawyers provides legal advice only — RAD/DAP structuring, tax and estate accounting questions may also require input from the estate's accountant.
When a residential aged-care resident dies, any remaining Refundable Accommodation Deposit (RAD) is generally refundable — subject to permitted deductions — and, in most cases, the provider pays it to the deceased resident's estate. That refund is often one of the larger assets an executor deals with. This article walks through what a RAD is in general terms, how it interacts with probate and estate administration, what providers usually ask for, and how executors should handle records, timing, estate accounts and beneficiary communication. The residential aged-care framework is set by the Aged Care Act 2024 (Cth), which commenced on 1 November 2025.
General information only, not legal, financial, accounting or tax advice. Executors should obtain legal advice on the estate and, where relevant, accounting or financial advice on the RAD refund.
What happens to a RAD after death?
A Refundable Accommodation Deposit is a lump sum paid to a residential aged-care provider for the resident's accommodation. It sits alongside — and is separate from — ongoing fees such as the Basic Daily Fee, the means-tested care contribution and any additional or extra-service fees. For a general walk-through of RAD, DAP and the current fee framework, see our guide to aged-care costs, RAD, DAP and the fee reforms.
When the resident dies, in general terms:
- the provider stops charging accommodation and care fees from the date of death (subject to the account reconciliation);
- any Daily Accommodation Payment that had been drawn from the RAD stops accruing on the same date;
- the remaining RAD balance becomes refundable, subject to permitted deductions; and
- the refund is generally paid to the deceased resident's estate within the statutory timeframe.
The precise timing and the permitted deductions are set by Commonwealth aged-care legislation and the specific Accommodation Agreement. Providers vary in how quickly they process refunds.
Is the RAD part of the estate?
Yes. Once the provider is no longer entitled to hold the RAD, the refundable balance is generally an asset of the estate. It is not held jointly with a family member, does not pass by survivorship, and does not follow a superannuation-style nomination. It falls into the estate and is distributed under the Will or, if there is no Will, the intestacy rules. The executor deals with it in the same way as bank accounts, shares and other estate assets.
Who should the provider deal with?
The right point of contact changes over the course of administration:
- Immediately after death. The provider will usually deal with the person named as the resident's representative in their records for practical matters — notice of death, personal belongings, room clearance and initial account queries.
- Before a grant. Executors should notify the provider in writing that they are the named executor, request the RAD statement, and confirm what the provider will require to release the refund.
- Once probate or letters of administration issue. The provider should deal with the executor or administrator on all financial matters, including the RAD refund and account reconciliation.
Providers commonly require a sealed copy of the grant before releasing significant balances, in the same way banks do. Executors should not assume the RAD will be paid on a death certificate alone.
Does probate matter?
Usually, yes. Where the RAD balance is significant, the provider will normally require a grant of probate (or letters of administration) before releasing the refund. This is one of several factors executors weigh when deciding whether probate is required for a particular estate. Our probate in Victoria guide and executors' guide to estate administration cover the broader probate framework. On executor duties generally, see executor duties in Victoria.
Executor checklist: issue, why it matters, what to check
| Issue | Why it matters | What to check |
|---|---|---|
| Accommodation Agreement | Sets the accommodation price, RAD/DAP structure and permitted deductions. | Locate the signed agreement and any variations; identify the agreed accommodation price. |
| Resident Agreement | Sets services, fees, extras and account arrangements. | Confirm what ongoing fees were being paid and how they were funded. |
| RAD statement | Shows the starting RAD, any DAP drawdowns, deductions and current balance. | Request an itemised statement to date of death and beyond. |
| Date-of-death reconciliation | Determines what the estate is entitled to and what the provider can retain. | Reconcile Basic Daily Fees, means-tested contributions, extras and any DAP against the RAD statement. |
| Provider requirements | Determines what evidence and forms are needed to release the refund. | Ask the provider in writing what they require (death certificate, grant, ID, refund form). |
| Refund destination | Ensures the money lands in the correct estate account. | Provide the estate bank account details, not a personal account. |
| Timing | Statutory refund timeframes apply; delays may attract interest. | Diarise the statutory refund date and any interest entitlements. |
| Records | Estate accounts and beneficiary transparency depend on them. | Keep all provider correspondence, statements and reconciliations on the estate file. |
Timing, statements and records
The Commonwealth aged-care legislation sets statutory timeframes within which providers must refund a RAD balance following a resident's death, with interest payable in some circumstances if the refund is late. Executors should:
- notify the provider promptly of the death and of the executor's role;
- request a written RAD statement and account reconciliation to date of death;
- ask the provider in writing what they require to process the refund and diarise their stated timeframe;
- confirm the provider has the correct estate bank account for the refund; and
- chase the refund in writing if it is not received within the stated timeframe.
Records matter. Estate accounting and beneficiary transparency both depend on being able to show what was paid, when, and how it was reconciled.
Estate accounts and beneficiary communication
The RAD refund typically features in the estate accounts as a receipt into the estate bank account, with the reconciled deductions shown against it. Executors have a duty to keep beneficiaries reasonably informed. Where the RAD is a significant portion of the estate, providing beneficiaries with a clear summary of the provider statement, the reconciliation and the net amount received tends to avoid later suspicion or dispute. Where an accountant is preparing estate accounts or an estate income tax return, provide them with the same documents. On the tax side generally, see our guide to estate tax for executors.
What if there is a dispute?
Disputes commonly arise where one adult child managed the aged-care arrangements and others did not, or where aged-care fees were paid out of a joint account, out of a specific gift or out of proceeds from the sale of the family home. The right response is usually:
- gather and share the underlying documents (Accommodation Agreement, Resident Agreement, RAD statements, bank records);
- reconcile any DAP drawdowns, means-tested contributions and extras against the RAD;
- correspond with beneficiaries under the executor's duty to keep them reasonably informed; and
- obtain legal advice where the dispute concerns whether specific transactions during the resident's lifetime should be set aside or accounted for.
Where the resident lived in a retirement village before moving into aged care, or died between the two, our article on what happens when a retirement village resident dies covers the village side of the reconciliation.
When to seek legal advice
Seek legal advice where the RAD balance is significant, where the provider is delaying or disputing the refund, where the reconciliation involves DAP drawdowns or unusual deductions, where the estate is being administered without probate and the provider is requiring one, or where beneficiaries are raising concerns about the aged-care arrangements or the handling of estate funds. Early advice usually shortens the process and reduces the risk of executor liability.
How we help
Our probate and deceased estates team and retirement living and aged care team work together on RAD refunds and related estate-administration issues — from initial provider correspondence and probate applications through to estate accounting, beneficiary communication and, where necessary, disputes. We coordinate with the estate's accountant on tax and financial questions.
Frequently Asked Questions
What happens to a RAD when an aged-care resident dies?
In general terms, the aged-care provider stops charging accommodation and care fees from the date the resident dies (subject to any permitted continuing charges for personal belongings and account reconciliation) and any remaining Refundable Accommodation Deposit balance becomes refundable, subject to permitted deductions. The refund is generally paid to the deceased resident's estate.
Is the RAD part of the estate?
Once the resident has died and the provider is no longer entitled to hold the RAD, the refundable balance is generally an asset of the estate. It is not a joint asset with a family member and does not pass by survivorship. The executor deals with it as part of the estate, and it is distributed under the Will (or the intestacy rules if there is no Will).
Who should the aged-care provider deal with after death?
Once a grant of probate (or letters of administration) is made, the provider should deal with the executor or administrator. Before a grant, providers commonly deal with the person named in their records as the resident's representative for practical matters (notice of death, personal belongings, account queries), but they will usually require formal proof of appointment before releasing significant RAD balances.
Does probate need to be obtained before the RAD is refunded?
It depends on the provider and the size of the balance. Providers commonly require sight of a grant of probate (or letters of administration) before releasing significant RAD balances, in the same way banks do for larger accounts. Some providers may release smaller balances on a statutory declaration and indemnity, but this is at the provider's discretion. Executors should not assume the RAD will be released without a grant.
What documents will the provider usually ask for?
Typically: the death certificate, the executor's identification, and once available, a sealed copy of the grant of probate. Providers may also require a completed refund form nominating the estate bank account for payment. Requirements vary; the safest approach is to ask the provider in writing early on and confirm what they will accept.
Are there deductions from the RAD balance?
Permitted deductions may include an outstanding Daily Accommodation Payment (DAP) that had been drawn from the RAD, unpaid Basic Daily Fees, means-tested contributions, extras and, in some cases, permitted retention amounts. The provider should give an itemised statement. Executors should reconcile that statement against the Resident Agreement and the Accommodation Agreement and query anything that appears inconsistent.
What if beneficiaries disagree about the RAD or aged-care costs?
Disagreements are common where one adult child managed the aged-care arrangements and others did not. The correct approach is transparency — clear estate accounts, copies of provider statements, and communication under the executor's duty to keep beneficiaries reasonably informed. Where the disagreement escalates, legal advice on the executor's position, and where necessary on the beneficiaries' rights to challenge specific transactions, should be obtained.
Does Parke Lawyers give financial or tax advice on the RAD?
No. We advise on the legal and estate-administration aspects — provider correspondence, probate, executor duties, estate accounting and disputes. Tax questions on estate income during administration, and financial questions such as reinvestment of the refunded RAD, sit with the estate's accountant and financial adviser. We work alongside them where required.
Probate & Estate Administration
Executor dealing with an aged-care RAD refund?
We handle provider correspondence, probate, estate accounting and beneficiary communication — and act promptly where a RAD refund is delayed or disputed.
This article is general information only and does not constitute legal, financial, accounting or tax advice. Please obtain advice tailored to your circumstances.