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Nature
of the Beast
When a resident goes into a care home and has insufficient capital, other
than their home, to be self funding for fees the Local Authority will have
power and, indeed a duty, to assess them under the National Assistance
(Assessment of Resources) Regulations and if eligible, pay for their care
fees. Rather than forcing a sale of the home immediately, however, the
council has power to enter into deferred payment agreements which are
essentially interest-free loans which fall due 56 days after the death of
the resident concerned. These are registered as charges on the property by
way of security.
When
Does the Possibility of Obtaining a Deferred Payment Agreement Become
Relevant?
Under the NA (AR) Regs and the Charges for Residential Accommodation
Guide (the rule book for councils dealing with payment for residential
care and accommodation):
1.
Unless a person is not going to return home then their residence should
be disregarded. This is to enable the temporary resident to re-enter the
community. That is in accordance with what is generally perceived to be
best for the resident. It is also in line with government policy.
2. If a
relevant person, such as a spouse, still lives in the family home it
will also be disregarded. Other disregards may potentially apply
depending on the circumstances.
If a
person becomes a permanent resident because they need long-term care,
subject to any relevant disregards, their former residence will generally
need to be sold. That will often be when the temporary 12-week residential
property disregard expires.
Deferred
payment agreements can be entered into after the expiry of the mandatory
disregards.
It should
be noted that the deferred payment option is not an additional disregard
but an interest-free loan. As such, however, it can be an attractive
option for families who do not want, possibly depending upon adverse
market conditions, (to have to sell the home at that point). It should
also be noted, however, that once entered into the deferred payment
agreement cannot be determined until all outstanding sums due to the
council have been repaid.
Terms
of Agreement
A form of deferred payment agreement which might be used by local
authorities is referred to in CRAG paragraph 7.018. This is not obligatory.
Robert Campbell & Company
Greenhills
Winsham
Devon
EX33 2LX
Tel: 0870
241 2139
rob@carelaw.co.uk
www.carelaw.co.uk |
