We've helped hundreds of families just like yours—every story matters.
Let us help you through this, just like we helped Amanda.
When a loved one enters aged care in NSW, you hope for their comfort and peace—but what happens when they pass away? Suddenly, you’re dealing with grief and a confusing swirl of paperwork and financial issues. This was exactly Amanda’s reality. Her mum’s passing left her with a mountain of responsibility—including recovering a significant sum: the Refundable Accommodation Deposit, or RAD.
Amanda remembers feeling completely out of her depth. “I didn’t even know where to start. The thought of losing that money, on top of everything else, kept me up at night,” she shared with us later.
At CM Lawyers Marrickville, we understand that the process isn’t just about numbers—it’s about families, closure, and doing right by your loved one.
A RAD is a lump sum paid (often by families, just like Amanda’s) to secure a spot in NSW aged care facilities. Think of it as a substantial loan to the aged care provider, one that’s refunded when the resident leaves or passes away. It can be paid in a lump sum, in instalments, or a mix of both. When the time comes to reclaim it, most people are surprised to find that it isn’t as simple as making a phone call.
As Australia’s population ages, more families are facing this process—often at their most vulnerable. The RAD is regulated under the Aged Care Act 1997, and managing its return after death is a crucial, sometimes daunting, step. Amanda told us she felt lost among all the legal probate requirements in NSW, afraid she’d somehow miss out on her mum’s money by not “doing it right.”
Here’s the catch: aged care providers won’t just hand over the RAD. They’re required to refund it—but only after you provide a Grant of Probate in NSW (if there’s a will) or Letters of Administration in NSW (if there isn’t).
This isn’t red tape for the sake of it; it’s to ensure the refund goes to the right person.
Amanda admits she had no idea what probate law in NSW was, or why she needed it. “It felt like just another hurdle. I wondered if I’d ever see the money back.”
The Grant of Probate NSW is an official Supreme Court document confirming that the executor is legally authorised to act for the estate. If there’s no will, Letters of Administration NSW appoint a close family member to take on that responsibility.
One of the most common questions we hear is, how long does probate take? The process can take several weeks or months, depending on the complexity of the estate and whether any issues arise.
Most aged care facilities won’t release the RAD (Refundable Accommodation Deposit) without these probate legal documents—no matter how much you plead. Sometimes, for very small amounts, the provider might make exceptions, but for most families, following the proper legal process is essential
Amanda’s story is far from unique—but it shows how crucial support and clear steps are during a stressful time:
Obtaining Probate or Letters of Administration : Amanda started by applying for probate—she needed this “golden ticket” before anything else could happen. If your loved one’s affairs are straightforward, this part might take 4–6 weeks. For Amanda, waiting felt endless, but knowing she was on the right track (with our Marrickville probate lawyers guiding her at each step) gave her peace of mind.
Submitting to the Aged Care Provider: Once she had probate in hand, Amanda handed it over to the provider. Only then were they legally required to begin the refund process. She was relieved to learn there’s a set rule: the RAD must be refunded within 14 days of the provider receiving all documents.
Interest Payments: Amanda was surprised—and a little reassured—to find out the law protects families here. If the provider delays, they must pay interest on the RAD:
Base Interest Rate (BIR): Applies for the first 14 days after the resident’s death.
Maximum Permissible Interest Rate (MPIR): Kicks in if the refund is late and stays in place until the money is paid back.
Amanda’s situation is typical, but sometimes the journey is even bumpier:
If your loved one didn’t leave a Will: The process is almost the same, but the RAD refund goes to whoever is officially appointed as estate administrator under NSW law—usually the next of kin.
If the aged care provider can’t pay: Amanda’s biggest fear was “what if the provider goes bust?” Thankfully, the Australian Government guarantees all RADs through the Accommodation Payment Guarantee Scheme.
If your loved one moved to another service: The refund is triggered by notice—details and timing depend on when and how the move happened. The same rules about interest and documentation apply.
Amanda told us, “Honestly, the relief I felt when someone finally explained things in plain English—it was like I could breathe again.” At CM Lawyers Marrickville, we see it as our mission to make sure families don’t feel alone, lost, or powerless.
We guided Amanda through each form, chased up the paperwork, and ensured the aged care facility met all their obligations. By the time the RAD hit her account, Amanda wasn’t just grateful for the money—she was grateful for the support that got her through a really tough time.
Managing a loved one’s estate after they’re gone is never easy. The probate and RAD refund process in NSW, though it can feel like a headache, is just one more way you can honour their legacy—and protect what’s rightfully yours.
At CM Lawyers Marrickville NSW, we take the worry out of the process, helping you reclaim what your family is owed, efficiently and compassionately.
If you’re facing a similar situation to Amanda, let us help you find clarity, comfort, and results—so you can move forward with confidence.
Disclamer: This website provides general information only. Nothing on this site should be taken to comprise legal advice or used as a substitute for detailed and competent legal advice. While the information contained in this website is believed to be accurate and current, it is provided by CMLawyers in good faith on an “as is” basis. CMLawyers, its directors, officers or employees make no representation or warranty as to the reliability, accuracy or completeness of the information contained on this website, and none of them accept any responsibility arising in any way (including negligence) for errors in, or omissions from, the information contained in this website.
02-9557-9000
lawyers@cmlaw.com.au
