Wiltshire Council ADULT CARE DEFERRED PAYMENTS SCHEME GUIDE What is a Deferred Payment? A deferred payment is a loan, whereby Wiltshire Council will pay the net care costs on your behalf and defer receiving the payment back from you until some point in the future. Your property will be used as security to repay the loan. The scheme was introduced nationwide from 1st April 2015 as the Care Act 2014 came into force. Its aim is to ensure you do not have the sell your home to pay for care during your lifetime. Wiltshire Council offer Deferred Payments whether or not you have decided to sell your home. As part of the process you will be required to undertake a means tested financial assessment based on the income and savings that you have. This assessment will ascertain the weekly contribution that you will make towards the cost of your care from your regular income. Your contribution must be paid direct to the care provider. What is a Deferred Payment Agreement (DPA)? It is a legal agreement between you and Wiltshire Council and allows Wiltshire Council to apply a charge on your property and provide it with security to pay back the loan. The agreement will need to be signed by you and anyone who stands to financially benefit should your property be sold. Until the agreement is in place, and the subsequent charge registered with the land registry, Wiltshire Council will not make any payments for care fees. It is strongly advised that you seek legal advice before entering into a DPA. Who is eligible for a deferred payment? You are eligible for a DPA if: (i) You have been assessed as having eligible needs, which Wiltshire Council decides should be met through a permanent care home placement or though supported living; (ii) You own a legal or beneficial interest in a property which is your only home; (iii) You have less than the upper capital limit in assets excluding the value of your home; (iv) Your home is not disregarded as an asset (see below) (v) You, and anyone with a beneficial interest in the property, agree to the terms and conditions set out in the Deferred Payment Agreement and return the signed agreement (vi) You are able provide adequate security for the debt, by way of a legal mortgage or land registry charge over your property (vii) You have capacity to enter into a legal agreement, or someone else has the legal right to make this decision on your behalf. (viii) You are not using the deferred payment to finance a mortgage payments on supported living accommodation How does it work? The following process steps would normally apply (please note this is at the point where you have been assessed as having eligible needs and have decided on your care provider/placement and completed a financial assessment) You complete the form deferred payment application form DPA1 and return it to Wiltshire Councils’ finance team. Wiltshire Council will check with the land registry that you are sole or part owner of the property check Wiltshire Council will arrange an appraisal of the property to provide an opinion as to the value of that property. This will require access to the property so you will be contacted to arrange an appointment When all the required information is received Wiltshire Council will calculate the equity limit (see below) and determine the sustainability of the proposed loan. Generally then draw up the Deferred Payment Agreement and send it to you along with the land registry form CH1 You check the agreement and sign it along with any co-owners and return the DPA and CH. It is recommended you seek legal advice at or before this stage. Wiltshire Council apply a legal charge against your property and will write to you to confirm. Wiltshire Council will begin to make payments to the care home on your behalf and record all payments made. Payments will be backdated to the start date of care where necessary. Wiltshire Council will send you statements every 6 month to keep you updated on the loan costs. How much money can be deferred? The maximum amount that can be deferred is known as the Equity Limit. This is calculated as follows: + your share of the property value - less 10% (to allow for future selling costs) - less the lower capital limit (currently £14,250) - less any charges already placed on the property (i.e. existing mortgage) where appropriate. The amounts deducted from the property value act as a buffer, to cover any subsequent interest which continues to accrue, and will provide a small ‘cushion’ in case of small variations in value of the property. Generally it should take two years of more to reach the equity limit. Where this is not the case Wiltshire Council will consider whether the cost of your care is sustainable under the deferred payments scheme. This could mean that a third party needs to contribute more towards your care in addition to the deferred payment or a more sustainable care option needs to be considered. How much will it cost me to have a DPA? The overall costs will depend on the length of time the DPA lasts. A summary of fees are given below: Each DPA incurs a set-up fee of £579 – This covers the costs of the legal work and valuation of the property Each DPA incurs a closure fee of £144 – This covers the costs of the legal work and removing the legal charge on the property Interest – Interest is charged from the date the payments are made for the care to the date the full balance of the DPA is repaid. Interest is charged on a compound basis. The interest rate applied is the government’s “15-year average gilt yield” plus 0.15%. The 15-year average gilt yield is set by the Office for Budget Responsibility (OBR) twice a year, on 1st January and 1at July, in their Economic and Fiscal Outlook report. The initial interest rate will be denoted on your deferred payment agreement and you will be written to each time this rate changes. Valuation fees – Each valuation costs £150. The initial valuation is included in the initial set up fee. Further valuations at 50% and 70% and others where required will incur this charge and will be added to the deferred payment. Other costs – Wiltshire Council will not charge an administration fee for running the DPA, but there may be other costs that are incurred, for instance legal fees to recover a debt due. Please note: As standard all fees and interest will be automatically added to your deferred payment. PLEASE NOTE: if for any reason the deferred payment agreement does not go ahead after completing the application form DPA1, you will be liable for any costs paid by Wiltshire Council in setting up the deferred payment, including valuation and land registry fees. You will be sent an invoice for the costs incurred. When will payments for my care cease to be deferred? Payments against the DPA will cease to be paid by Wiltshire Council upon one of the following events (please note: fees and interest will continue to be charged against the Deferred Payment until it is repaid in full): 1. Where the equity limit has been reached – When the equity limit is at 50% and 70%, Wiltshire Council will arrange for a revised valuation of your property. This will determine a revised equity value and limit and date when the DPA equity limit will be reached. When you are within 6 months of the equity limit a member of Wiltshire Council’s care team will work with you to seek approval for your care to be funded by Wiltshire Council (less your client contribution). 2. Where the value of your property has decreased in value so the upper capital limit is reached – You must inform Wiltshire Council if you believe this to be the case. Wiltshire Council will arrange for a revised valuation of your property. The care team dealing with your case will seek approval for your care to be funded by Wiltshire Council (less your client contribution). 3. Where you become eligible for full funding from a local authority or health funding to pay for your care 4. Where your property becomes disregarded for any reason 5. Where you no longer have a need for care 6. Where you die – Future correspondence will be with the executor of your estate and payment will be expected 90 days after the date of your death. After this 90 day period, if Wiltshire Council conclude that active steps to repay the debt are not being taken, Wiltshire Council may enter into legal proceedings to reclaim the amount due. 7. Where you or a third party decides to pay off your Deferred Payment, for instance when your house is sold – Wiltshire Council will assume that you will be paying for your own care in the future and will cease payments to the care home and inform them in writing, giving 30 days notice, that you will pay for the full cost of care from the specified date. You must arrange to pay the care home directly from that date. You must inform Wiltshire Council if your assets drop below the upper capital limit giving three months notice of reaching this limit (funding will not be backdated to before the date you asked Wiltshire Council for funding). If you believe you have reached the upper capital limit when the Deferred Payment closes you must inform us immediately. Wiltshire Council will arrange a reassessment of your needs and finances. The care team dealing with your case will seek approval for your care to be funded by Wiltshire Council (less your client contribution). In all the instances above you will receive 30 days notice that payments will cease and a Final DPA statement. No further payments will be charged against the DPA, although interest and charges will still accrue, and you will receive 6 monthly statements until the DPA is repaid in full. When you are ready to repay the DPA balance, you must inform Wiltshire Council who will prepare a final DPA statement (see FAQ’s below “Q. I want to repay my DPA, who do I contact?”). Wiltshire Council will arrange for a valuation of your property every 3 years after the end of the DPA whilst the deferred payment amount remains unpaid. 8. Where you breach the terms of the DPA as set out in the agreement - Wiltshire Council will assume that you will be paying for your own care in the future and will cease payments to the care home and inform them in writing, giving 30 days notice, that you will pay for the full cost of care from the specified date. You must arrange to pay the care home directly from that date. You will receive a final DPA statement and an invoice from Wiltshire Council for the full DPA costs. If the invoice remains unpaid after 30 days, Wiltshire Council will issue you a reminder notice and after a further 14 days a final notice. If the invoice still remains unpaid, Wiltshire Council will issue legal proceedings to recover the money due. Interest will still accrue until the debt is paid and Wiltshire Council will recharge any legal costs incurred to recover the debt and charge a higher rate of interest (typically 8%) on the balance due, 30 days after the invoice was raised. When does the DPA end? The DPA does not end until the full balance of the deferred payment, including interest and fees, is repaid to Wiltshire Council. Until this time interest and fees will continue to accrue. When the final payment is received Wiltshire Council will release the legal charge on your property with the land registry. What do I do to request a deferred payment? Complete form “DPA1 - Application for a deferred payment” and return it to the Business Services Finance team as stated at the top of the form. What happens if Wiltshire Council cannot offer me a Deferred Payment? It is hoped that instances where this occurs will be rare, but can occur if: 1. 2. 3. 4. You do not return the Deferred Payment Agreement A co-owner will not sign the Deferred Payment Agreement Wiltshire Council cannot register a first legal charge on your property You do not meet the eligibility criteria for a deferred payment In these instances you will have to find alternative ways to fund your care and make arrangements to pay the care provider direct until your assets reach the upper capital limit, at which point you should contact Wiltshire Council to request funding. There may be instances where the DPA is not offered through no fault of your own, these include: 5. The value of your property means you have no equity as an asset 6. Your property is disregarded 7. It transpires that you do not have a beneficial interest in your property In these instances Wiltshire Council would begin the process to fund your care. For more information about Wiltshire Council’s Deferred Payment Scheme, please see FAQ’s below and visit www.yourcareyoursupportwiltshire.org.uk selecting the Deferred Payments tile. If you wish to speak to someone at Wiltshire Council about the scheme please contact either Darren Law on 01225 713905 or Kerry Davies on 01225 713431. Or you can email Darren on firstname.lastname@example.org or Kerry on email@example.com. To apply for a deferred payment please complete the form DPA1 below and return it to: By email: please scan a completed SIGNED copy with required scanned attachments to firstname.lastname@example.org By Post: Business Services Finance, Placements Finance Team, Wiltshire Council, County Hall, Trowbridge, Wiltshire, BA14 8JN. DPA1 - Application for a Deferred Payment with Wiltshire Council Please complete the information below to apply for a deferred payment. You should read the document “A guide to Deferred Payments” before completing this application along with the FAQ’s. Applications should be returned either by email (scanned signed copy) to email@example.com or by post to: Business Services Finance, Placements Finance Team, Wiltshire Council, County Hall, Trowbridge, Wiltshire, BA14 8JN Section 1. About You (the adult care customer) 1.1 Surname ________________________________________ 1.2 First Name ________________________________________ 1.3 Middle Name(s) ________________________________________ 1.4 Date of Birth: __ __ / __ __ / __ __ __ __ (dd/mm/yyyy) 1.5 Current Address ____________________________________________________ 1.6 Post Code ___________ Section 2. About the care you will Receive 2.1 Care Provider Name _________________________________________________ 2.2 Care Home / supported living address: ___________________________________ ______________________________________________________________________ 2.3 Post Code ___________ 2.4 Provider Contact details: Tel: ____________________________ Email _____________________________ 2.5 Agreed weekly GROSS fee £_______________ 2.6 Please state the number of days you will have to pay the care provider after the date the care ends for any reason: _________ days 2.7 Please supply a copy of the terms and conditions document and / or contract with your care provider with this form. Please also be aware that the contract for care is between yourself and the care provider. Section 3. About the Property you own 3.1 Address ____________________________________________________ ____________________________________________________ 3.2 Post Code ___________ 3.3 What is the approximate resale value of your property £_________________ 3.4 For leasehold properties, what is the remaining term of the lease? _________years 3.5 Do you have a mortgage or other secured loan on the property? Yes or No _________ 3.5a If YES, what is the current outstanding loan value £_________________ 3.6 Do you co-own the property with someone else? Yes or No _________ 3.6a If YES, how many other people own the property with you? ______ 3.6b If YES, what percentage of the property do you own? ______% 3.6c Please provide name and address of co-owners below: Co Owner 1:Name ______________________________ Address __________________________________________________ ___________________________________________________ Post Code _____________________ Co Owner 2:Name ______________________________ Address __________________________________________________ ___________________________________________________ Post Code _____________________ Please provide details of further co-owners on a separate sheet or in email attaching this form. 3.7 Are you selling or do you intend to sell your Property? Yes or No _________ 3.8 Please provide details of your solicitors below: Company Name _______________________________________________ Contact Name _______________________________________________ Address _______________________________________________ _______________________________________________ Post Code _____________________ Telephone Number _____________________________________ Email address _____________________________________ 3.8a If you do not propose to instruct a solicitor to deal with the completion of your DPA you will need to provide a completed ID1 form OR where a power of attorney/deputy is appointed you will need to provide: 1) a letter or report from a medical doctor in respect of yourself as evidence that you lack capacity if appropriate 2) form ID1 in respect of your power of attorney/attorneys – where a power of attorney is appointed jointly and severally only the power of attorney dealing with this matter needs to provide a completed form ID1, - where a power of attorney is appointed jointly each of them will need to provide a completed form ID1. The form and guidance can be found at https://www.gov.uk/completing-forms-id1-and-id2 3.9 Are you renting or do you intend to rent your property? Yes or No _________ 3.9a If YES, what is the estimated rental income per month£__________________ 3.9b If YES, what is the estimated costs of renting per month£__________________ 3.9c If YES, what is/expected to be the rental start date ___/___/_______ (dd/mm/yyyy) 3.10 Does the property have building insurance in place Yes or No _________ 3.10a If NO, please state the reasons why in the box below 3.10b If YES, please provide a copy of your current insurance policy with this application 3.11 Please briefly explain how you plan to maintain your property during the term of the DPA in the box below. 3.12 Do you own or co-own any other properties? Yes or No _________ 3.12a If YES, please provide property address below Address _______________________________________________ _______________________________________________ Post Code _____________________ 3.13 Upon receipt of this completed application form, we will instruct our contracted property valuer, Spicerhaart, to contact you to arrange a convenient date and time to value your property. An agent of Spicerhaart will therefore need to contact you to arrange the valuation, which includes viewing the inside of the property. Please provide below the name and contact details of the person who will be available to meet Spicerhaart: Contact Name _________________________________ Daytime Contact Telephone Number ______________________________ Address __________________________________________________ Post Code _____________________ Email Address ________________________________________ Special instructions (i.e. specific contact times / dates you will be uncontactable etc) Please note: We will write to you by letter or email to inform you that we have instructed Spicerhaart to complete a property valuation. When requesting the valuation, we will provide Spicerhaart with a ‘Letter of Authority’. Please ensure you ask to see this letter of Authority and identification before the valuation commences. Spicerhaart will not retain any personal details provided after the valuation is complete, to comply with data protection regulations. Section 4. DIA 4.1 Please state the amount of weekly Disposable Income Allowance (DIA) you would like to retain to cover your personal expenses and running costs of your property (see document ‘A guide to Deferred Payments' for an explanation of DIA) I would like to retain £ ______________per week for DIA (Min £24.90 - Max £144) Section 5. Declaration: I declare that: * I have received and read the document entitled “A guide to deferred Payments and FAQ’s“. * I understand that I should seek independent legal advice before entering into a Deferred Payment Agreement (DPA) * I understand that in completing this application, Wiltshire Council will, if I am eligible, arrange a deferred payment agreement contract to be sent to me * I understand that I will be contacted to arrange a valuation of my property * I understand that if for any reason the deferred payment agreement does not go ahead after completing the application form DPA1, I will be liable for any costs paid by Wiltshire Council in setting up the deferred payment to that point, including valuation and land registry fees * I have contacted all co-owners of the property and informed them of my intention to enter into a deferred payment agreement and register a charge on the property and they have agreed to enter into the DPA and the Legal Charge * I understand that if the deferred payment agreement cannot go ahead, I will have to arrange for payment of care fees myself and I will be liable to refund Wiltshire Council any payments they have made for my care. * I have completed this application form to the best of my knowledge * The property is registered at the land registry in my and co-owners names Name (please print) ________________________________________ Signature ______________________________ Dated ___ ___ / ___ ___ / ___ ___ ___ ___ (dd/mm/yyyy) Signed in my capacity as POA / Deputy (if applicable) _________________________ Your Address __________________________________________________ Post Code _____________________ Email Address ________________________________________ As standard, Wiltshire Council will correspond with you via email. If you would prefer to receive correspondence by post please tick this box 6. Documentation to include in your application: Please ensure you have included all the relevant documentation below (where applicable) with your application. Please tick the relevant box to state you have included the documentation with your application. * denotes required information. * Copy of contract / terms and conditions with the care provider Copy of a legally binding agreement denoting your share of the property where it is not in equal shares Copy of your own appointed property valuation Copy of your current mortgage or other financial charge on the property * Copy of your current insurance policy for your property Completed form ID1 – certificate of identity for a private individual, where you are not intending to instruct a solicitor. The form and guidance can be found at https://www.gov.uk/completing-forms-id1-and-id2 Where the customer denoted in section 1 lacks capacity and this form is signed and completed by someone else: Copy of the court order appointing a Resident/Enduring or Lasting Power of Attorney OR Deputy appointed by Order of the Court of Protection. A copy of a letter or report from a medical doctor in respect of the customer denoted in section 1 as evidence that they lack capacity if appropriate Frequently Asked Question’s (FAQ’s) Q. A. Where can I get independent financial advice? Financial advice is available to older people and their families to help them plan for long-term care, should they need it. Wiltshire Council, working in partnership with other organisations, has developed an arrangement that ensures financial advice and support is easy to obtain and access. Many older people face significant challenges, including having a large investment in their homes with little income to provide for long-term care. Also, most wish to pass on some financial benefit to their families. Wiltshire Council has identified two qualified and accredited independent financial companies with professional competency and accreditation in longterm care planning. These companies, along with a number of others, are approved by the Society of Later Life Advisors (SOLLA): Ashcourt Rowan Tel: 01225 469424 firstname.lastname@example.org Eldercare Solutions Tel: 0800 0821155 email@example.com These two organisations have been identified by Wiltshire Council to provide independent specialist advice and products specifically tailored to the needs of older people. Please note that these companies will charge for their services. Charges will be made clear to you before you decide to accept their services. There are a number of other Independent Financial Advisors available who are accredited by the Society of Later Life Advisors. You can search for SOLLA registered advisors through the SOLLA website here. Wiltshire Council recommends that you should always check companies have this accreditation in place before discussing your financial situation with them . Q. A. How is the Equity Limit calculated? The maximum amount that can be deferred is known as the Equity Limit. This is calculated as follows: + your share of the property value - less 10% (to allow for future selling costs) - less the lower capital limit (currently £14,250) - less any charges already placed on the property (i.e. existing mortgage) where appropriate. For example: You own 50% of a property worth £200,000 and there is no mortgage or other charges on the property. The equity limit is calculated as follows: Full property value (A) Your share of the property value (50%) (B) less 10% (C) £200,000 £100,000 -£20,000 less the lower capital limit (D) less any charges on the property (E) Equity Limit (B – C – D - E) -£14,250 -£0 £65,750 Q. A. What is a ‘top-up’? This is the extra cost of your care placement over and above the costs Wiltshire Council would normally pay. You must bear in mind when choosing your chosen provider that if you have a ‘top-up’ and you later apply for Council funding, for instance when the equity limit is reached, Wiltshire Council will give consideration as to whether it is prepared to fund your top-up ongoing. If a revised fee cannot be negotiated in your current placement provider, Wiltshire Council will consider if your needs must be met in another placement. Q. A. What is meant by sustainability? Generally, the NET care fees paid by Wiltshire Council under the deferred payment, should take two years (104 weeks) or more to reach the equity limit. The length of time it will take to reach the equity limit will be calculated before the deferred payment agreement is sent to you. Where the equity limit will be reached within two years, Wiltshire Council will consider whether the cost of your chosen care is sustainable under the deferred payments scheme. This could mean that a third party needs to contribute more towards your care in addition to the deferred payment or you need to consider care at a lower cost. You will be contacted by a member of our care team should this be the case. For example: Your equity limit is £65,750 and you have chosen a care home which charges £1,000 per week. Your client contribution, including your chosen DIA amount, is £100 per week. The weekly charge to your deferred payment would therefore be £900. You would reach your equity limit within 73 weeks (1 year 147 days). This is calculated as follows: Equity Limit (A) Net care fees per week (B) Number of weeks to reach the equity limit (A divided by B) Q. A. Q. £65,750 £900 73 Why is the value of my home taken into account for my financial assessment? When undertaking a financial assessment as set down in The Care Act 2014, the Local Authority will need to look at all of your assets. This includes both capital (e.g. a property) or Income (e.g. an occupational pension). This is to ensure that those who can afford to pay for their own care from their regular income or assets do pay for their own care. The government sets limits on the amount of assets a person is allowed to retain. This is known as the upper capital limit and currently stands at £23,250. There is also a lower capital limit under which any capital asset including savings can be disregarded. This is known as the lower capital limit and currently stands at £14.250. When is my property not included in the financial Assessment (known as a property disregard)? A. Your property would normally be disregarded in your financial assessment if one of the following people lives in your home as their main residence: your spouse or civil partner a relative over 60 a relative who is “incapacitated” (sick or disabled) a person under the age of 16 and whom you are liable to maintain. A person who has been living with you and has been your long term carer. Please note you will need to be able to demonstrate how long you have lived at the property and what care you have provided. If one or more of the above conditions apply, you do not need to use the value in your property to pay for your care. This may mean that you fall below the upper capital limit and therefore may be eligible for funding by Wiltshire Council. In this case you would not need a deferred payment from Wiltshire Council. Q. A. What is a 12 week property disregard and who is eligible? A 12 week property disregard applies for the first 12 weeks that you become a permanent resident of a care home or enter supported living and you meet the eligibility criteria for a deferred payment. Th12 week period is provided to allow you to decide how you would like to use your property to pay for your ongoing care (i.e. request a deferred payment from Wiltshire Council or sell your property). During this 12 week period you care will be funded by Wiltshire Council; however you will still need to pay an assessed client contribution. You may also have to pay a ‘top-up’ if the cost of your chosen care is above the rate Wiltshire Council would fund. Please note that during the 12 week property disregard period the top up can be met from your own savings or by a third party. Once the 12 week property disregard ends the top up will need to be met by a third party, if applicable, it cannot continue to be taken from your own savings. You will be eligible for 12 weeks funding from Wiltshire Council if: You meet the eligibility criteria for a deferred payment You were not already resident in a care home or supported living placement at the time you contacted Wiltshire Council for support. If you are already in a care placement, you will be eligible for the 12 week disregard if: Your home was previously disregarded or you are self funding AND You have a sudden and unforeseen event which means you have to make a choice about what to do with your property to fund your care. An example of this is if you have a spouse living in your home (so the property is disregarded) and your spouse dies. Q. What is classed as supported living? A. supported living is accommodation which is not a care home and is— a. in premises which are specifically designed or adapted for occupation by adults with needs for care and support to enable them to live as independently as possible; or b. provided— i. in premises which are intended for occupation by adults with needs for care and support (whether or not the premises are specifically designed or adapted for that purpose); and ii. in circumstances in which personal care is available if required. Personal care may be provided by a person other than the person who provides the accommodation c. The accommodation does not include premises i. in respect of which the adult is for the time being entitled to dispose of the fee simple, whether or not with the consent of other joint owners; or ii. which the adult occupies other than under a licence or tenancy agreement. “tenancy” means a tenancy which is not a long tenancy. Q. A. I want to repay my balance on the DPA loan, who do I contact? Please either email FinancePlacements@wiltshire.gov.uk OR write to Business Services Finance, Placements Finance Team, Wiltshire Council, County Hall, Trowbridge, Wiltshire, BA14 8JN A closing statement and invoice will be given to you within 10 working days. We will also need your contact details and address. Please note that if the full amount due is not paid within 30 days of the invoice date, interest will continue to accrue until the DPA is repaid. If more interest is added, you will receive a subsequent invoice for the extra amount due. Wiltshire Council will not discharge any legal charge over the property until the full amount due is paid in full. Q. A. Who is the contract for care between and who should inform Wiltshire Council of any changes in the care homes fees? The contract for care is between you and the care provider as you are selffunding your care. You must make Wiltshire Council aware of any changes to care home fees during the duration of the deferred payment and provide Wiltshire Council with a copy of the terms and conditions agreed between you and the care provider. Q. A. How are payments made to the care provider? Wiltshire Council will make payments direct to the care provider, less client contributions and top ups. Q. A. What happens if I don’t pay the deferred payment when it ends? This will depend on the circumstances and what steps you are taking to repay the amount due. If Wiltshire Council feels that you are not actively trying to repay the debt we will initiate legal proceedings to recover the amount due. Please note that interest will continue to accrue on the amount due until it is repaid in full. Wiltshire Council will not discharge any legal charge over the property until the full amount due is paid. Q. A. I do not have enough money to pay off the full balance of the deferred payment, what should I do? This could potentially happen as the eventual sale price of the home, less selling fees, is not as much as anticipated. If this is the case you should inform us as soon as possible. You may be required to undertake a new financial assessment to ascertain your contribution towards your care based on your new financial situation. Wiltshire Council will determine the revised capital amount due (the accrued interest and fees will be payable even if this takes you below the capital limit) and send you a revised statement and invoice. Ongoing interest on the revised amount due will continue to accrue until the debt is repaid in full. Q. A. Do I need to sell my home to pay for my care? No, you do not. The Deferred Payments scheme was specifically set up so that you did not have to sell your home during your lifetime. If you have decided to sell your home you can still apply for a deferred payment in order to pay the care fees whilst the home is being sold. This is sometimes referred to as a bridging loan Q. What happens if I don’t return the deferred payment agreement or a coowner will not sign the agreement? You will have to find alternative ways to fund your care and make arrangement to pay the care home direct until your assets reach the upper capital limit. Wiltshire Council will write to you to confirm this. A. Q. A. How will I know the balance of my deferred payment agreement? You will receive a statement every six months from the commencement date of the deferred payment. The statement will show the amount of fees deferred, interest and administrative charges accrued to date, the total amount due and the equity remaining in the home, along with an estimate of the date the equity limit will be reached. Wiltshire Council will also provide a statement on request within 28 days. Q. A. What do I do if I do not agree with your valuation of my property? You have the right, at your own cost, to instruct a valuer to value your property for you. You should inform Wiltshire Council in writing (email accepted), with your valuer’s report. We will also accept 3 estate agents valuations of you property and will calculate the value by adding the highest and lowest valuations together and dividing that number by 2. We will consider the valuation you have supplied but we are under no obligation to accept it. We will write to you either to accept your valuation or to inform you of our decision on the valuation figure to be used. Wiltshire Council’s figure will be taken for the equity value calculation. If there is no agreement about the value (and hence no equity limit can be calculated) then the procedure for disputes shown below will be followed. Q. A. What happens if I own more than one property? You are not eligible for a deferred payment and will have to find alternative ways to fund your care (e.g. selling your second property) and make arrangement to pay the care home direct until your assets reach the upper capital limit and you only own one property. If you have made genuine attempts to liquidate the value of the property to pay the care fees but have been unable to, you should write to Wiltshire Council’s Business Services Finance team, stating the position, your attempts to raise finance and your case will be considered as an exception. You will be advised in writing of the outcome. Should a decision be made to offer a deferred payment as an exception, the normal deferred payment procedure will apply, with a charge being placed on one or more of your properties to secure the loan. Q. A. What do I do if I have assets which I cannot convert to cash easily? You are not eligible for a deferred payment and will have to find alternative ways to fund your care or come to an agreement with the care provider to pay the costs until the assets can be turned into cash. Q. Who will value my property? A. Upon receipt of the completed DPA1 application form, Wiltshire Council will instruct our contracted property valuer, Spicerhaart, to contact you to arrange a convenient date and time to value your property. An agent of Spicerhaart will therefore need to contact you to arrange the valuation, which includes viewing the inside of the property. We will write to you by letter or email to inform you that we have instructed Spicerhaart to complete a property valuation. When requesting the valuation, we will provide Spicerhaart with a ‘Letter of Authority’. Please ensure you ask to see this letter of Authority and identification before the valuation commences. Q. A. What interest rate will be applied to the DPA? The interest rate applied is the set government “15-year average gilt yield” plus 0.15%. The 15-year average gilt yield is set by the Office for Budget Responsibility (OBR) twice a year on 1st January and 1st July each year. It is reported in the OBR’s Economic and Fiscal Outlook report. When the rate changes you will be informed of each change in the interest rate and the enw rate will apply from either the 1st January or 1st July depending on when it is changed by the OBR. Q. A. How will interest be applied to the DPA? Interest will be applied against each individual payment to the care provider on the date it is made. The interest is charged on a compound basis (interest charged on interest). Interest will be charged against the DPA until the debt is repaid in full. Q. A. Is there a different process if I decide to sell or not to sell my home? No the process is the same, although if you decide to sell your home the DPA would normally be for a shorter period of time. Q. A. Does Wiltshire Council take any other forms of security into account? generally, Wiltshire Council will only accept a first legal charge over a property owned by the adult as it reduces the risk that the deferred payment will not be repaid and Wiltshire council has a duty to protect public money. However you can request that Wiltshire Council makes an exception to this rule. To do so, you should write to Wiltshire Council’s Business Services Finance team, stating your position and why you feel your case should be dealt with as an exception. You will be advised in writing of the outcome. Should a decision be made to offer a deferred payment as an exception, the normal deferred payment procedure will apply, with security being sought by either a charge being placed on your property or another form of security (e.g. a guarantor) to secure the loan. Q. A. Do I need to provide an ID check with my DPA1 application. If you do not propose to instruct a solicitor to deal with the completion of your DPA you will need to provide a completed ID1 form. This also applies where a power of attorney or deputy is appointed along with a letter or report from a medical doctor in respect of yourself as evidence that you lack capacity. Where a power of attorney is appointed jointly and severally only the power of attorney dealing with this matter needs to provide a completed form ID1. Where a power of attorney is appointed jointly each of them will need to provide a completed form ID1. The form and guidance on completing the form can be found on the government website at https://www.gov.uk/completing-forms-id1-and-id2 Q. Can I rent my property? A. Yes you can. You must inform Wiltshire Council that you have taken the decision to rent out your property. You will be required to provide verification of the amount of the rental income you will receive, the rental start date and the costs associated with renting the property. A new financial assessment will then be completed by our Financial Assessments and Benefits Team, to reflect the increase in your income, and you will be advised of your new client contribution and from which date is applies. If you decide to rent out your property please contact the Financial Assessment and Benefit Team on 01249 706755 or email FABTeamChippenham@wiltshire.gov.uk. Q. A. Do I need to keep my property insured? Yes. As a minimum your property should be insured for Buildings cover at the full rebuild value. You also need to make arrangements for the property to be adequately maintained. Q. A. What do I do if I decide to sell my home after the DPA is in place? Inform us of your decision and provide us with the solicitors contact details so we can ask them for updates of the sale. When your property is sold we will provide you or your solicitor a final deferred payment statement including interest at the advised completion date. Q. What happens when my house sells or for any other reason my liquid assets (not property) mean I am self-funding? Wiltshire Council will assume that you will be paying for your own care in the future, where required, and will cease payments to the care home and inform them in writing, giving 30 days notice, that you will pay for the full cost of care from the specified date. You must arrange to pay the care home directly from that date. You must inform Wiltshire Council if your assets drop below the upper capital limit giving three months notice of reaching this limit (funding will not be backdated to before the date you asked Wiltshire Council for funding). A. Q. Do I need to pay a client contribution if I have a DPA? A. Yes. Q. What is the Disposable Income Allowance and how does it apply? During your initial financial assessment, all your regular income will be taken into account. Everyone who receives care in a care home, must be left with a minimum amount of £24.90 each week for living expenses, known as Personal Expense Allowance (PEA), and this figure is deducted from your client contribution rate as standard during your financial assessment. If you have a Deferred Payment with Wiltshire Council, the PEA is replaced by the Disposable Income Allowance (DIA), which is at a higher rate of £144.00 per week. This is in recognition of the costs of running your property (i.e. insurance and maintenance). Please note that your daily living costs also need to be taken from your DIA. The maximum you can choose to retain is £144 per week, but you can choose to retain any amount between £24.90 (for living costs) and £144.00 per week. You should state the amount you wish to retain on the DPA1 application form. You will only be able to change the amount you retain once a year as part of the annual financial re-assessment process each April. If you choose to take more than the standard of £24.90 then the extra you retain will be deducted from your weekly client contribution. If your deferred payment agreement ends for any reason, then DIA will no longer be applicable and you will revert back to the standard PEA rate of £24.90 and your contribution adjusted accordingly. You will be informed by letter of the new rate of your client contribution if applicable and the date this rate commences. Please note: Reducing the amount of client contribution you pay towards your care will increase the weekly amount charged against your property under the Deferred Payment Agreement. For example: You have received a letter from our FAB team stating your weekly client contribution will be £200 per week. The care costs are £800 per week. You state on your DPA1 application form that you wish to retain £100 for DIA per week. Your new client contribution will now be £124.90. This is calculated as follows: Client contribution Add back PEA Less DIA New client contribution £200.00 £24.90 -£100.00 £124.90 The weekly charge under the deferred payment agreement will change as follows: Old weekly charge New weekly to DPA charge to DPA Care costs per week £800 £800 Less: Client Contribution Weekly charge to DPA -£200 £600 -£124.90 £675.10 Q. A. Q. A. Q. A. What should I do if I think the value of my asset plus my savings is reaching the upper capital limit? If you have a DPA you should contact the finance placements team on: email: FinancePlacements@wiltshire.gov.uk, Telephone: 01225 718550. We may need to ask for another valuation of your property and a financial assessment. What should I do if there is a delay in getting the deferred payment in place and the provider needs to be paid? Wiltshire Council will not make any payments to your care provider, after the 12 week property disregard period if applicable. You should therefore contact your provider and explain the situation and if necessary arrange credit with them or arrange to pay the provider until the DPA is in place. Do I get a refund of any payments I have made to the care provider whilst the DPA is being set up? Yes you will receive a refund but this will be from the care provider and you should contact them to receive the refund. Wiltshire Council will backdate payments to the DPA commencement date, which will be the day following the 12 week disregard, if applicable. Wiltshire Council will pay the care provider the net amount due, backdated to the start date, therefore you should contact your care provider for a refund of the net amount you have paid. Net amount means the cost of the care less your assessed client contribution and top up if applicable. Wiltshire Council will assume you have asked for the refund to be paid to you when calculating the DPA balance. Q. A. Do I have to have to have a deferred payment? No it is your choice. You can choose to pay for your own care, for instance through arranging a loan with a third party or selling your home. You should be aware that if you plan to raise money against the value in your home in the form of a loan you should be able to evidence this loan arrangement if you should need to apply to Wiltshire Council to fund your care in the future. You must inform Wiltshire Council if your assets drop below the upper capital limit giving three months notice of reaching this limit (funding will not be backdated to before the date you asked Wiltshire Council for funding). Q. A. What should I do if my financial circumstances change? You should telephone 0300 456 0111 and inform them of the change. A new financial assessment will then be completed by our Financial Assessments and Benefits Team, to reflect the increase in your income, and you will be advised of your new client contribution and from which date is applies. Once this change has been applied you will be advised of Wiltshire Council’s position with regard to any agreements that you may have entered into and how you the change has affected your status. Examples of where you financial circumstances change include: You receive some money which takes you above the upper capital limit; a qualifying person is no longer living in your home and your home can no longer be disregarded in your financial assessment. Q. What checks do Wiltshire Council do regarding my property? A. We will check the land registry records for all of your last known addresses to determine if you have or do own a property. Q. A. What happens if the land registry check states I do not own a home? We will write to you to inform you of this. This could happen because the property was left to you in a will but the land registry has not been updated. If the land registry needs updating it will be your responsibility to arrange for this to completed before a deferred payment can be offered to you. Q. A. Can I pay some or all of the Deferred Payment as I go along? Yes you can, please email or phone the finance placements team on: Email: FinancePlacements@wiltshire.gov.uk; Telephone: 01225 718550 if you wish to make a payment. You will be provided with Wiltshire council’s bank details in order to make the payment. Payments will be credited against your loan on the day they are received into our bank and will reduce the principal amount due and the interest charged, as well as increasing the duration of the deferred payment as the equity limit will be reached at a later date. Please note that as standard all fees and interest will be automatically added to your deferred payment. Q. What happens if I feel my home should be disregarded after I have entered into a DPA? (i.e. a potentially qualifying person moves into my property) You should telephone 0300 456 0111 and inform them of the change. Wiltshire Council’s legal team will determine if it is appropriate to consider if the change represents a deliberate deprivation of assets. You will be informed of the outcome of the decision in writing, which will include the next steps to be taken by Wiltshire Council or yourself. A. Q. A. Will entering into a DPA have any effect on my benefits? Yes. If you have entered into a DPA and it is not your intention to sell your property during your lifetime any means test benefits, e.g. Income Support or Pension Credit, will cease. This is because within the rules of these means test benefits, your property is unable to be disregarded. If it is your intention to put your property up for sale, you are able to retain your income support or Pension Credit for a period of 26 weeks. You will be required to provide verification of your intention to sell the property; this is usually in the form of an estate agent’s valuation. A decision will then be made by an adjudication officer from the Department for Work and Pensions. If you have entered into a DPA you are entitled to retain your Attendance Allowance. This is because government legislation states that whilst you are paying for your own care you are entitled to receive Attendance Allowance. Your contribution towards your care will be adjusted to reflect this. If at a later date you meet the criteria for funding from the Local Authority, you Attendance Allowance will stop and your contribution towards your care adjusted. Q. A. Do you offer a DPA for other types of care? Generally No. DPA’s are only offered for residential or nursing home placements and for supported living. Q. A. Q. A. What happens to the DPA amount if a third party funds some of my care, for instance the Department of Health paying funded nursing care? This will be deducted from the costs of the loan in the same way as you client contribution or ‘top-up’ and will reduce the weekly cost of the deferred payment. My property is overseas can I still have a DPA? Generally No. DPA’s are only offered where we have adequate security in place, which is a first charge on a property. If you have made genuine attempts to liquidate the value of the property to pay the care fees but have been unable to, you should write to Wiltshire Council’s Business Services Finance team, stating the position, your attempts to raise finance and your case will be considered as an exception. You will be advised in writing of the outcome. Should a decision be made to offer a deferred payment as an exception, the normal deferred payment procedure will apply, with a charge being placed on one or more of your properties to secure the loan.