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. The money you owe in the deferred payment contract, including interest and administrative costs, must be refunded when you sell your home. The local authority also has the authority to offer a deferred payment contract to anyone who lives in a nursing home or subsidized housing system and does not meet all the criteria set by the government. The legal guidelines, when deciding whether or not to offer a deferred payment contract, will take into account the following considerations: payments related to interest and taxes made by the municipality may also be deferred if the person requests it and the local authority consents to it. You sign a legal agreement stipulating that the money will be refunded if your home is sold. There are fees and fees associated with deferred payment agreements. The deferred payment contract is in all respects a loan contract, because as soon as the payments are deferred, the person is responsible for the local authority and interest is 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: Only in England, if you have a deferred payment contract, must your municipality take into account the cost of receiving your home when you decide how much you must pay for your care costs. Your municipality may (but should not) charge interest on deferred payments to cover the costs. If the local authority identifies a person who is deferred payment late or who is entitled to a deferred payment, or when a person comes to them for information, they must inform them of the system and how it works.

This statement should at least: The deferred payment contract means that after the reimbursement of the municipality, there is less money left from the sale of your home. This means that anyone who might expect to inherit you will receive less. If the rental income added to your other income covers all or more than your retirement home expenses, you can rent your property without the need for a deferral of payment. Payments can only be deferred for costs charged by the care and support provider for the services provided. 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. Under section 35 of the Act, the local authority has the power to offer a deferred payment contract to persons living in subsidized residences (formal schemes) when: deferred payment agreements are consistent with the circumstances of some persons, but not all. You may be entitled to a deferral of payment if: if the person sold their home or died, there is a deadline to pay the deferred payment contract in full. That is: 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. The implementation of a deferral of payment should not last more than 12 weeks.