The person can defer all of their care costs or part of their care costs (if they opt for a contribution from another source). If the money is not repaid on time at the end of the agreement, the local authority can calculate additional interest until the debt is repaid. There may also be on-going administrative costs plus interest. The local authority usually ensures that the money you owe for healthcare costs is reimbursed by imposing a legal charge on your property. This is done by going to the cadastre to collect the fee. The tax is waived when the debt is repaid. You sign a legal agreement that states that the money will be refunded if your home is sold. In Scotland, there are no interest charges while you have the payment deferral agreement. Interest is only collected if the contract is terminated by the person or from 56 days after his death.
Interest should then be calculated at a “reasonable rate” set by the local authority. The local authority has the right to add administrative and interest charges to the deferred payment agreement. These include the lawyer`s fees he pays to agree on a fee with the land registry, the costs of photocopying or printing and the time spent on the agreement, while he does not have to earn money. The most common situation in which you want to consider a payment deferral agreement is when your savings and other assets (except for your home) are small, but the value of your home leads you to exceed the threshold for paying some or all of your nursing home expenses. A payment deferral agreement means you don`t need to sell your home during your lifetime to pay for care. A deferred payment agreement has no influence on how your income and savings are assessed to see how much you should pay for your care. When concluding a payment deferral agreement, the total amount that can be delimited between the capital (normally ownership) must be agreed in advance. This amount is called the own funds limit and the local authority does not have the right, under the Care Act, to defer total payments beyond this amount. Where a deferred payment agreement is concluded at the local authority, it normally guarantees its interest by imposing a fecal tax on the person`s property up to an amount known as the own funds limit. . .