Before a deferred payment contract is approved, the municipality conducts a financial assessment. First, they will look at your savings and assets (without the value of your home), which must be below the corresponding threshold (for example. B $23,250 in England) to qualify. We calculate the interest on each amount that is set aside to cover the borrowing costs. Before you can apply for a deferred payment contract, you must be admitted to home care or already in a care home by your local authority. When a late payment is concluded, the total amount that can be transferred to the asset (normally the property) must be agreed in advance. This amount is called a capital limit and the local authority is not entitled, under the Care Act, to defer total payments on that amount. In Scotland, there is no interest charge as long as you have the deferred payment contract. Interest is only collected if the contract is terminated by the person or from 56 days after death. Interest should then be collected at a «reasonable rate» set by the local authority. If the money is not repaid at the end of the agreement, the municipality may charge additional interest until the debt is settled. There may also be a common administrative fee, plus interest. If you are entitled to a deferred payment, the Commission is likely to ignore the value of your property for the first 12 weeks of your stay in a retirement home.
This should allow sufficient time for the purposes of the agreement. Read more in our article on the 12 weeks of real estate failure- Care financing works differently in the UK. Paying the home fees is complex and depends on many things that are unique to you. If your partner, dependent child, parent over 60 or someone who is sick or disabled still lives in your home, that is not part of your estate. So you don`t need to use the property that is attached to your home for care and you don`t need a deferred payment contract. The Ministry of Health has issued guidelines on how to set the maximum interest rate for deferral payment agreements. These guidelines are contained in Point 9.67 of the Guide to Care and Assistance published in October 2016. You may be eligible for a deferred payment contract if: If you apply, the local authority will assess your financial situation. Councils should offer deferred payments if you meet the following criteria: a deferred payment contract is only a means of paying for care and is more in line with the circumstances of some people than others. If the person terminated the contract because he or she has returned to the home, no other deferred payments can be made against the property and the property must be ignored in any new financial assessment.
The person is responsible for deferred payments until today and interest will continue to be incurred until the account is settled. Only in England, if you have a deferred payment contract, must your local authority take into account the cost of receiving your home when deciding how much you must pay for your care costs.