If the local authority is aware that the person has a weekly income of more than $144 (known as personal disposable income), the person may ask the person to contribute to the cost of their care for the rest of their income as part of the financial assessment process. This means that only a portion of the costs are deferred. However, their weekly income should never be subject to personal compensation. You may be eligible for a deferred payment contract if: You can also compare with a deferred payment contract with the alternative, z.B. Sell your home and put the product into a savings account. If the person has sold their home or died, there is a time limit to pay the deferred payment contract in full. Payments can only be deferred for costs charged by the care and support provider. If the person lives in a care home, this probably includes accommodation costs, but if the person lives in assisted housing and pays rent to a landlord (who may or may not be the caregiver), these rents cannot be deferred. The person may defer the total amount of their care costs or a portion of their care costs (if they choose to contribute from another source). 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. You sign a legal agreement stipulating that the money will be refunded if your home is sold. Funding for basic care varies from country to country. Paying the home fees is complex and depends on many things that are unique to you. If the person has additional savings, he can contribute to the local authority at the cost of his care of this, in turn, means that the amount of deferred payment will be reduced. However, the municipality cannot require a person with a deferred payment contract to contribute to their savings if they do not wish to do so. When a deferred payment agreement is reached, the local authority generally insures its interests by listing a land registry tax on the person`s property for an amount known as Equity Limit.
You will then defer all payments until this amount is reached or until the agreement is terminated, depending on what happens in the first place. It is on this date that the person`s home is sold and the municipality receives payment for the care costs it has deferred as part of the agreement. A deferred payment contract has no influence on how your income and savings are assessed to see how much you should pay for your care. From this you should deduct interest and fees for the deferred payment system, the maintenance and insurance costs of the home and the fees for each owner you use. 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. 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.
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. You can pay the fees and interest if they are charged, or you can add them to the deferred amount.