Deferred payments for people in residential accommodation
Introduction
This information is for people who are about to move into permanent residential accommodation as well as for those intending to go into residential care. It is also for their carers and family.
What this information explains
It outlines the deferred payment scheme through which you 'defer' or put off a part of your payment for permanent residential accommodation in exchange for granting the Council a legal charge on your main or only residence. It is about the situation where the value of your home is being taken into account in working out what you will have to pay for your care costs.
Sometimes the value of a person's home is not taken into account at all, for example when a partner continues to live there or when someone is admitted to residential accommodation on a temporary basis.
The advantage of "deferred payments" is that if some of the money you have to meet care costs is tied up in the value of your home, you may not need to sell your home immediately in order to meet this cost. However, it is very important that you go into this in great detail. It is vital that you seek independent financial advice because there may be things specific to you and your circumstances that may mean this is not the best course of action for you.
There are two steps that are available to reduce the pressure to sell your home.
