Deferred Payment Agreement Gov.uk

You must have the mental capacity to understand and conclude the agreement. If not, you have a person appointed by law who can do it on your behalf, such as. B a power of attorney. If your partner has circumstances that mean we always include the value of your home, if you find out how much you can pay for the cost of your care, you can still get a deferred payment contract as long as they sign the contract. If you would like to receive a deferral of payment, discuss how to apply with the manager. There are fees and fees associated with deferred payment agreements. As of April 1, 2015, the date of the introduction of the Care Act 2014, all local authorities in England will be required to offer deferred payment contracts to beneficiaries as an option to reimburse care homes. Deferred payments should mean that you don`t have to sell your home in your lifetime unless you want to. The money owed to us for retirement home bills paid on your behalf must be refunded.

This is usually done in two ways: we charge $500 to enter into a deferred payment contract that includes the cost of the value of your property. To cover our costs, we charge interest on the amount you owe us until the money is refunded. The interest rate is set by the government and revised every six months. From July 1 to December 31, 2016, the interest rate is 1.85%. Your deferred payment contract automatically expires after your death and your executor has 90 days to arrange the payment of the money owed. During this period, interest expense will continue to be collected. We can recover the amount owed by the courts if your executor does not pay back within 90 days. A territorial authority cannot deny a credit CCA to a person who meets all the mandatory criteria for a CCA in accordance with Regulation 2, paragraph 1, of the DPA Regulation (including consent under the agreement).

Deferred payment agreements are only one option to cover the costs of care. We recommend that people seek independent financial advice on different ways to pay for care. Visit www.societyoflaterlifeadvisers.co.uk to find an accredited advisor. You can sell your home at any time and pay back the deferred payment contract. Or someone else, like a friend or relative, can pay the bill without having to sell your home.

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