LA Funding deferred

[hrh]

Good morning everyone

Can any shread any light on local authority funding for care after the 12 week period. We are nearing the stage where we have to make the decision to either sell the house or sign contracts for the council to defer payment. My question is, the council will continue to pay the care home at the local authority rate, we can off set some of this so when mum does pass away and the house is sold there won't be a huge cost at the end.
Now although the local authority will be paying at their rates, I understand that mum will be classed as a self funder, if this is the case, will the care home ask for a top up fee the same as those in the care home that are classed as self funders.
If this is the case is it not better to sell the house immediately and use the money ourselves, or do we ask the care home directly how it works. From some forums it says the local authority continue to pay under the deferred payment scheme, but it doesn't say what the care home may charge. This is so confusing.

Hrc x

 

[canary]

If someone is self-funding there isnt a top-up fee because it is all paid by the person who is in the care home.
Top-ups only become important once someone is no longer self funding.
I cant find a fact-sheet about this, but Im pretty sure that with the deferred payments the council pays the whole lot (not just up to their usual limit), so there arent top-ups to worry about, but the LA do charge a fee to set this up and there is interest to be paid.

 

[Louise7]

Under a deferred payment the local authority can agree to pay more than their usual care home rate maximum if there is enough equity in the property - you have to ask them if they will do this.

You could ask the care home if they will still accept the lower local authority rate when your Mum becomes a self-funder but as they are a business it's probably unlikely, but no harm in asking.

As Canary has mentioned, there are various charges required to set up a deferred payment agreement, plus interest is added to the amounts paid for the care, so you need to think carefully before entering into the agreement. The house can be sold at any time under the agreement - it doesn't have to be sold only when the person passes away - so you need to think about what you want to do with the property.

If the house remains empty then your Mum will still have to pay for the upkeep/maintenance and utility bills. It will also need to be insured in order to get the deferred payment agreement, and insurance for an empty property can be quite a bit more than it was when occupied. If you intend to rent it out then you will need to seek the permission of the local authority first, and bear in mind that there are various safety certificates etc that will be required prior to rental. The local authority would also expect any rental income to be paid towards the care costs to reduce the amount that they are lending.

 

[DesperateofDevon]

Horrible situation & decisions to make. Have discussed this repeatedly with OH before we reach this point with my folks