Q: Divorced and living alone, I am starting to worry what will happen if I need to go into care. I have a valuable house but only around £50,000 in cash/assets. As the government scrapped the cap on care home fees I have been looking at ways to preserve my home for my daughter as the house has been in the family for several generations. One thing I have looked at is a Deferred Payment Agreement. As I do not trust government and council officials and you have no vested interest in my finances, please can you explain how a DPA works?
A: A DPA is an arrangement offered by local authorities to those needing to go into care and who don’t want to or cannot sell their home to pay the fees.The local authority agrees to pay the care home fees on the person’s behalf and the fees accumulate as a debt to the local authority, secured against the homeowner’s property, which may need to be revalued periodically, and repaid at a time to suit or upon death.
While both England and Wales offer Deferred Payment Agreements as a way for individuals to delay paying for care, there are key differences in eligibility, caps on fees, and administrative approaches. Although a previously planned cap on costs in England has been abandoned by the current government, in Wales there are more uniform regulations and a cap on care costs.
In both England and Wales, interest may be charged on the deferred payment amount, though the rates may vary from region to region. Because of the complexity of Deferred Payment Agreements, it would be advisable to discuss all your options with a solicitor who will give you impartial information about care funding and can also advise you in respect of any inheritance issues.
This question has been answered by Ulia Choudhry, a Partner with GHP Legal. If you would like to speak to someone about this or any other legal matter, please visit our website www.ghplegal.com and use the contact us form, or call us on: Wrexham 01978 291456, Llangollen 01978 860313, Oswestry 01691 659194
