VIC Interest on Returning Bonds to Aged Care Resident's Family

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BrianM

Member
16 June 2020
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Hi
I am on the Committee of Management at a not for profit Aged Care facility. When returning bonds to resident families what are our options. Can we just deposit the money in a nominated solicitors trust fund or set up a bank account in the name of the estate of the deceased person? We are trying to avoid paying the 4.95% interest accrued on money when awaiting probate. is there a way of doing this?
 

Rob Legat - SBPL

Lawyer
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16 February 2017
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Gold Coast, Queensland
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I suggest you need to get very specific, considered advice on this as it is not something you want to get wrong. In other words, not the type of brief answer you will get here.
 
Agree with Rob. Lots of complexity here and if you get it wrong the impact is likely to be huge.
 

BrianM

Member
16 June 2020
2
0
1
Not sure if you understood my question. We are more than happy to repay the bond but if we are held up waiting for probate, which is out of our control, we are liable for an extra 4.95% interest. Would putting the amount in a nominated solicitor’s trust fund till probate avoid an interest on the payment?
 

Atticus

Well-Known Member
6 February 2019
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Hi Brian ....

I'm not a lawyer, but talking from experience with my mother in a residential aged care facility (not for profit as well)... I'm *reasonably* confident that it was written in the contract with the facility that the RAD would be held by them including any interest earned (as set by legislation I believe) right up till the point of depositing it into the estate or solicitor trust fund (obviously after probate)..

As already mentioned, deviating from that would be fraught with danger I should think ... Definitely need solid legal advice