Payments must be deferred up to the amount of the personal budget (or the likely amount that is where people have not been assessed by the local authority). If the person wishes to defer less than the amount of the personal budget, this can be agreed, but he must be able to pay the difference between what is deferred and the amount of the personal budget. In Northern Ireland, there is no formal system for deferring payments. But it might still be available – ask your local care and social care company. A deferral of payment is only a means of paying for care and is more in line with the circumstances of some people than others. If you move into a retirement home and most of your money is spent in your home, your local authority can offer you a deferred payment contract. Your municipality may (but should not) charge interest on deferred payments to cover the costs. If you have another mortgage, check the terms and conditions and talk to your lender. Some lenders don`t let you borrow another loan that is guaranteed on the house.
If you have a deferred payment contract and someone owns your home with you, they must accept the agreement and accept that the house is sold when the time comes to reimburse the local authority. For example, if you live in England and your home is worth $100,000, you can borrow up to $75,750 under a deferred payment contract with your local authority. The payment contract can only be terminated if the payments and fees incurred by the person have been paid in full. However, there are circumstances in which the local authority may refuse to defer new payments for an active deferral contract: the deferral contract is a loan contract in all respects, because as soon as the payments are deferred, the person of the local authority is in debt and the interest will be owed on the money owed. As such, the agreement must clearly define all the conditions and information necessary to enable the person to determine his or her rights and obligations under the contract before it is concluded. This includes: The system offers you a loan from the Council that gives you flexibility in paying your care costs. It does not work in the same way as a traditional loan, since the Board does not give you a fixed amount, but pays an agreed portion of your weekly care and support bill for as long as it is needed. The loan will be charged interest on them in the same way as money borrowed by a bank.
The interest rate is set by the government. 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 person may choose to terminate the deferred payment contract at any time, before the agreed deadline or agreed capital limit, by communicating in writing with the local authority. There are a number of reasons why the person can terminate the account: payments related to interest and local authority fees may also be deferred if the person requests it and the local authority agrees. You pay a weekly contribution to your care based on your income or other savings. The part the Commission pays is your “deferred payment.” 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.
In accordance with Section 34 of the Care Act, a universal deferral system has been put in place.