Deferred Payment Agreement For Care Home Fees

As soon as you know you`ll be paying for the care costs, it`s a good idea to consider this option, especially if you know you can`t immediately access the funds you need for your care home. If a person has chosen to live in a nursing home that costs more than the amount of the personal household, the local authority is not obliged to postpone the “recharge amount” to be paid, although it is entitled to do so if it wishes. If the local authority does not decide to postpone the amount of the charge, the recharge remains payable. You can continue to apply for the care allowance, the disability allowance (care component) or the personal independence payment (daily living component) if you are entitled to one of these benefits. But you can continue to get it if you paid for your care by selling your home or if you used an equity release product. We explain how to cover the costs of a nursing home if you are self-financing and what happens when your money runs out. If the rental income added to your other income covers all or more than your nursing home expenses, you can choose to rent out your property without even entering into a payment deferral agreement. When you apply, the local authority carries out an assessment of your financial situation. Boards should offer deferred payments if you meet the following criteria: Most people use about 70 percent of the value of their home. We don`t use full value to make sure you have enough money left to pay for your home`s selling costs (such as attorneys` fees) and to make sure we have enough money to pay for your care when home prices drop. In Northern Ireland, there is no formal system for deferring payments. But it could still be available – ask your local health and social trust.

Local authority fees must be reasonable and must not exceed their costs. You must make a list of these fees available to the public. Therefore, this type of nursing home financing is only suitable for those who do not have many additional financial assets such as savings, bonds or stocks. You can usually only guarantee 70-80% of your home against your care home fees – it`s unlikely that local authorities will offer more than 90% of your home`s value for care to allow for a drop in market value…

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