Few decisions carry more financial and personal weight than choosing aged care or a retirement village — for yourself or for someone you love. These agreements are often signed under time pressure, during emotionally difficult circumstances, and involve some of the largest financial commitments a person will make in their lifetime.

Getting the contract right matters enormously. Getting it wrong can cost hundreds of thousands of dollars.

Retirement villages and aged care: two very different things

These are often spoken about together, but they involve different living arrangements, different legislation, and very different financial structures.

Retirement villages in Victoria are governed by the Retirement Villages Act 1986. Contracts typically involve an entry contribution, ongoing fees, and — critically — a deferred management fee (sometimes called an exit fee) that can significantly reduce the amount returned to you or your estate when you leave. Understanding exactly how that fee is calculated, and under what circumstances, is essential before signing anything.

Residential aged care is federally regulated and has undergone significant reform following the Royal Commission into Aged Care Quality and Safety. The financial structure typically involves a Refundable Accommodation Deposit (RAD) — which can range from $300,000 to over $800,000 depending on the facility and location — alongside daily care fees and means-tested fees. The interaction between these costs, your assets, your pension entitlements, and your estate plan requires careful attention.

What we review

Whether you’re looking at a retirement village agreement or a residential aged care contract, we examine:

• Entry costs and accommodation fees — including RADs, DAPs (Daily Accommodation Payments), and ingoing contributions
• Ongoing fees — what’s included, what’s extra, and how fees can change over time
• Exit fees and refund entitlements — how deferred management fees are calculated and what you or your estate will receive on departure
• Care level provisions — what happens if care needs increase and whether the contract accommodates that
• Your rights and the operator’s obligations — what the facility is legally required to provide and what recourse you have if they don’t
• Dispute resolution processes — how complaints are handled and what protections exist

How we work with families

We know that by the time many families contact us, a placement decision has already been made or is urgently needed. We work efficiently and communicate clearly, so you understand what you’re signing and why — without adding to the stress of an already difficult time. Where the contract has terms that concern us, we’ll tell you plainly and help you negotiate where possible.

We also review how aged care costs interact with your broader estate plan — because what you pay, and how, can affect what’s left for your beneficiaries.

Book a free 15-minute discovery call. We’ll help you understand what you’re looking at and what to watch out for.