From this you should deduct interest and fees for the deferred payment system, the maintenance and insurance costs of the home and the fees for each owner you use. You can also compare with a deferred payment contract with the alternative, z.B. Sell your home and put the product into a savings account. The deferred payment contract means that after the municipality is reimbursed, less money will remain from the sale of your home. This means that anyone who might expect to inherit you will receive less. 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. You sign a legal agreement stipulating that the money will be refunded if your home is sold. You can choose to contribute more to the cost of your care and keep less than $144 per week if you prefer.

This would reduce the amount you owe the municipality through the deferred payment contract. 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. 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. If you move from home to a retirement home and most of your money is spent on your property and you have very little savings, your local authority may offer you the option of deferring payment. This means that you do not need to sell your home immediately to pay the cost of the retirement home. Renting your property can give you extra income to pay your fees.

But there are some things you need to keep in mind before you do so: in Northern Ireland, there is no formal deferral system. But it might still be available – ask your local care and social care company. A deferred payment contract works in the same way as a share release system from a commercial supplier. You can compare this to see what`s right for you. As a general rule, the municipality ensures that the money you owe in care costs is reimbursed by a legal charge of your property. You should ask your local authority about the impact of your income on your deferred payment contract. Funding for basic care varies from country to country. Paying the home fees is complex and depends on many things that are unique to you. The implementation of a deferral of payment should not last more than 12 weeks. The value of your home is ignored for the first 12 weeks after moving into care. The agreement should therefore be ready for the time you start participating in the fees. A deferred payment system takes effect after being in a retirement home for 12 weeks or more.

This is due to the fact that the local authority should help fund your care and ignore the value of your property for the first 12 weeks. Short-term stays in nursing homes are not covered by the system. 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. Your municipality may (but should not) charge interest on deferred payments to cover the costs. For more information on the impact of your income on deferred payments, please see: If the money is not repaid at the end of the agreement, the municipality may calculate additional interest until the debt is settled.