Wiltshire Council PAYING FOR RESIDENTIAL OR NURSING CARE WHERE PEOPLE OWN THEIR PROPERTY INTERIM ADVICE PENDING NEW POLICY

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1 Wiltshire Council PAYING FOR RESIDENTIAL OR NURSING CARE WHERE PEOPLE OWN THEIR PROPERTY INTERIM ADVICE PENDING NEW POLICY Please note, this is interim guidance pending changes to the Councils policy, following the introduction of the care act. The new policy is expected to be in place by the end of July Before reading on please look at Appendix A, which describes the circumstances where the value of your home can be disregarded by the Council. The following does not apply should you own more than one property. In this case you would not normally qualify for financial assistance from the Council. 1. Do you own a property and have savings of more than 23,250? You cannot obtain financial assistance from the Council until your savings reduce to 23,250. You will need to make your own arrangements to pay all of your care costs in full. You can ask for a Community Care Assessment from the Council to determine your care needs. If you need nursing care the Health Authority should undertake an assessment of the nursing element of your care costs to see whether they can offer you financial assistance. If you do not sell your property whilst you are living in the care home and your savings reduce to 23,250 you can then contact the Council for financial assistance at that time (see below). 2. Do you own a property and have savings of less than 23,250? You may be entitled to receive up to 12 weeks funding from the Council, once you become a permanent resident to give you a period of time to decide whether or not you wish to sell your property. There is no onus on you to sell your property and the council are obliged to offer you a loan, if you have eligible care needs, if you decide not to do so. i) You want to sell the property and it is, or is about to be placed, on the market for sale The Council will ask you to complete a financial declaration (you will be contacted by the local Financial Assessment and Benefits (FAB) Team to arrange this) to enable a financial assessment to be undertaken to determine what contributions you are able to make towards your care from your weekly income and any savings you have in excess of 14,250. 1

2 You may be asked to apply for Income Support if you are currently under State Pension, age or Pension Credit if you are of State Pension age to assist you with your care costs during the 12 weeks funding period (if applicable) and possibly subsequently during any loan period. During the 12 weeks funding period (if applicable) if you are in receipt of Attendance Allowance or Disability Living Allowance (Care Component) this benefit will be withdrawn four weeks after funding from the Council commences. At the end of a period of funding by the Council of up to 12 weeks, Attendance Allowance or Disability Living Allowance (Care Component) can be re-instated and any Income Support or Pension Credit may be adjusted to reflect the reinstatement. Your contribution will need to be re-calculated in this case, should you request a loan. If your property is on the market for sale or about to go on the market for sale, the Council will offer you financial assistance in the form of a loan secured by means of a Solicitor s undertaking. If you wish to take this route, please complete and return a completed form FA11 to your care worker. You will need to instruct a Solicitor to handle the sale and they would need to agree to repay the Council on the completion of the sale of your property. After the Council has assessed your contribution towards your care costs the loan would be the difference between that and the actual cost of your placement until such time as the property is sold (See Appendix B and C). Please note that loans of this type are currently interest free, but the Council is currently consulting on whether interest charges should apply to loans and whether this form of security will be allowable in the future. If you enter into this agreement before any changes to Council policy, the loan will be interest free for a year, or until the property is sold, whichever comes sooner. If the property is not sold within a year, or we cannot obtain solicitors undertaking, you will be asked to enter into a deferred payment agreement, where fees and interest may be applied (fees and interest will not be applied retrospectively). More information will be provided to you should you need to enter into a deferred payment agreement. ii) You do not wish to sell your property The Council will ask you to complete a financial declaration (you will be contacted by the local Financial Assessment and Benefits Team to arrange this) to enable a financial assessment to be undertaken to determine what contribution towards care you are able to make from your weekly income and any savings you have in excess of 14,250. If you are in receipt of Income support currently for those people under their state Pension age or Pension Credit if you are of State Pension age you will need to advise the Department for Work and Pensions of your decision not to see your property, as this may affect your entitlement to those means tested benefits. You can contact the Department for Work and Pensions on During the 12 week period of funding (if applicable) if you have Attendance Allowance or Disability Living Allowance (Care Component) this benefit will be withdrawn after four weeks of the Council funding commencing. At the end of the 12 week period Attendance Allowance or Disability Living Allowance (Care Component) can be re-instated. 2

3 The Council would consider whether to offer financial assistance in the form of a loan and this is called a Deferred Payment. At the end of any 12 week funding period a reassessment of your contributions would be undertaken to reflect any reinstatement of Attendance Allowance or Disability Living Allowance (Care Component) and to consider any income that may be obtained from the letting of the property, should you decide to do so, as any rent income could be added to the contribution you make towards your care costs and therefore reduce the loan. An agreement would need to be completed by you or your representative to allow the Council to place a legal charge against your property to secure the loan. It is recommended that you appoint a Solicitor in this case to deal with the legal arrangements. However, please note that the Council is currently consulting on changes to its policy on deferred payments, which is due to end in July 2015, and therefore it cannot enter into any new deferred payment legal agreements until the results are known and the new policy is in place. Please read the guidance on deferred payments below and if you wish to proceed with this option, complete and return the application form DPA1to your care manager. When an application form is received, we will complete the necessary work, including valuing your property, to enable the deferred payment legal document to be completed when the new policy is in place. We will make payments to the care home on an interim basis until the legal process is in place and the loan is secured. If, for whatever reason, a deferred payment cannot be secured, we will write to you and provide notice that we will cease making payments to the care home. Please note, that Wiltshire Council will be paying your care fees on your behalf. If, for any reason, A Deferred Payment Agreement cannot be arranged, you will remain responsible to pay for the full costs of your care. There is no guarantee that a Deferred Payment agreement will go ahead. If you require more information about the deferred payments scheme please contact either: Name tel Darren Law darren.law@wiltshire,gov.uk Kerry Davies kerry.davies@wiltshire.gov.uk iii) If you choose a home that is more expensive than the Council would normally be prepared to pay During any period of 12 weeks funding by the Council any shortfall between the fee a care home may charge and the financial assistance on offer by the Council, you would have to meet yourself, or find a third party to meet this cost. The Council cannot loan you the difference during the 12 week period. Once any 12 week funding has ended, the Council can assist you to meet up to the full cost less your assessed contribution and this can be included in any loan arrangement, if the Council considers this to be appropriate. iv) What if you do not want any financial assistance from the Council after 12 weeks funding has ended You do not have to continue with any funding from the Council once the 12 weeks has ended if you do not wish to do so. If your property is on the market you will be able to retain any Income Support or Pension Credit awarded and have 3

4 Attendance Allowance or Disability Living Allowance (Care Component) reinstated. Any shortfall in fees would then have to be made up by yourself from any savings or you would have to have assistance from a third party. You can of course, seek financial assistance from the Council at a later date should, for instance, your property not sell as quickly as expected and your savings can no longer meet the shortfall of any costs in your care above your weekly income. It is advisable to seek independent financial advice before making any decision regarding funding of your care. If your property is on the market you will no doubt be appointing solicitors, but if you decide not to sell it is recommended that solicitors are appointed to deal with matters relating to the placing of a legal charge should you require financial assistance. 4

5 APPENDIX A Circumstances in which the value of your home would be disregarded There are certain situations, where the value of your home, may be ignored by both the Department for Work and Pensions and the Local Authority after you have moved permanently into a Care Home. This disregard will apply if any of the following people continue to live in your former home:- i) your husband, wife or partner ii) a relative over 60 iii) iv) a relative who is incapacitated (sick or disabled) a relative who is under 16 and whom you are liable to maintain. In addition the Local Authority (but not the Department for Work and Pensions) has discretion to ignore the value of your home when a long-term carer remains living in it. If the value of your home is disregarded because someone else is living there, ie one of the above, and that person moves out or dies, then the value of the property would then normally be taken into account from the date of the change in circumstances. 5

6 APPENDIX B WILTSHIRE COUNCIL 1. Under the Care Act 2014, Local Authorities must offer financial assistance to meet care costs pending the sale of a property in the form of a deferred payment (loan) to anyone receiving care in a residential or nursing home. 2. The deferred payments need to be secured by way of a legal charge, which is placed against the property by the Local Authority. 3. However, in cases where a client is in the process of selling their property and it is on the market, rather than proceeding with a legal charge, Wiltshire Council are currently accepting a Solicitor s undertaking as security to repay the loan on the sale of your property. 4. The Solicitor s undertaking would apply for up to 12 months and if your property is not sold within that time a deferred payment agreement would then be pursued. 5. You will need to appoint a Solicitor and provide an authorisation certificate to enable this Authority to communicate with your solicitor to obtain the undertaking. 6. A copy of the authorisation certificate Form FA11 is attached for your information with regard to a Solicitor s undertaking (Appendix C). This form should be completed and sent to you care manager. 6

7 Wiltshire Council ADULT CARE DEFERRED PAYMENTS INTERIM GUIDANCE Please note, this is interim guidance pending ratification to the Councils policy, following the introduction of the care act. The new policy is expected to be in place by the end of July 2015, following a period of consultation, at which time this guidance will be updated. What is a Deferred Payment? A deferred payment is a loan, whereby the Council will pay the net care home costs on your behalf and defer receiving the payment back from you until some point in the future. Your property or potentially other assets will be used as security to repay the loan. The scheme was introduced nationwide from 1st April 2015 as the Care Act 2014 was introduced. Its aim is to ensure you do not have the sell your home to pay for care during your lifetime. The Council offer Deferred Payments whether you have decided to sell your home or not, but until the Council s new deferred payment policy is ratified, the Council will also offer a short term interest free loan, where you decide to sell your home, and will accept a solicitors undertaking as security. As part of the process you will be required to undertake a means test financial assessment based on the income and savings that you have. This assessment will ascertain the contribution that you will make towards the cost of your care. This contribution will be paid direct to the care home. The local Authority is required to leave you with a minimum amount of income; This is known as the personal expenses allowance. Anything else may be taken into account when determining your contribution What is a Deferred Payment Agreement ( DPA )? This is a legal agreement between you and the Council and allows the Council to register a first charge on your property which will provide the Council with security to pay back the loan. The agreement will need to be signed by you and anyone who stands to financially benefit should the property be sold. Until the agreement is in place and the subsequent charge registered with the land registry the Council will not make any payments for care fees. However, until the Council s new deferred payment policy is ratified, the Council will make payments to the care home pending the deferred payment agreement being set up. 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 the Council decides should be met through a permanent care home placement (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 ( 23,250) 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 to provide adequate security for the debt, by way of a legal mortgage or land registry charge over your property or potentially other assets (subject to consultation) (vii) You have capacity to enter into a legal agreement, or someone who has the legal right to make this decision on your behalf. 7

8 How much money can be deferred? The maximum amount that can be deferred is X% (to be determined following consultation, but is likely to be a maximum of 85%), of your share of the property less 10% of that figure (to allow for future selling costs) less the lower capital limit (currently 14,250). 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 your care manager. The Council complete a land registry check and arrange a valuation of the property. Once the land registry search and valuation have been completed the Council will calculate the equity limit (see below), then draw up the Deferred Payment Agreement (DPA) and Form CH1 (Land Registry s legal charge of a registered estate form) and send it to you You agree, sign and return the DPA and Form CH1, along with any co-owners. It is recommended you seek legal advice at or before this stage. The Council apply a first legal charge against your property or potentially other assets (subject to consultation) as security to pay the deferred amount back at a later date. When the security is in place we will write to you to confirm. The Council makes payments to the care home on your behalf and records all payments made. The Council keeps you updated of the costs, interest (if applicable pending consultation)and charges during the term of the DPA. What happens when payments under the DPA cease? Payments against the DPA will cease to be paid by Wiltshire Council upon one of the following events (please note that fees and interest will continue to be charged until the full balance is repaid to the Council): 1. Where the equity limit has been reached When the equity limit is at X% (to be determined following consultation, but is likely to be before the equity limit is reached) the 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 3 months of the equity limit the care team dealing with your case will seek approval for your care to be funded by the 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 the Council if you believe this to be the case. The 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 the Council (less your client contribution and top up). 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. In the event of your death Future correspondence will be with the executor of your estate and payment will be expected 90 days after the date of your death in accordance with the terms of the DPA.. After this 90 day period, if the Council conclude that active steps to repay the debt are not being taken, for example if the sale is not progressing and the Council have actively sought to resolve the situation (or the Council conclude that the executor is wilfully obstructing sale of the property), the Council may enter into legal proceedings to reclaim the amount due. 8

9 7. Where you or a third party pay off your DPA in full, for instance when your house is sold The 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 the 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 the Council for funding). If you believe you have reached the upper capital limit when the DPA closes you must inform us immediately. The Council will arrange a re-assessment of your needs and finances. The care team dealing with your case and seek approval for your care to be funded by the Council (less your client contribution). 8. Where you breach the terms of the DPA - The 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. In all the instances above you will receive a DPA statement and 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 the Council who will prepare a final DPA statement (see FAQ s below Q. I want to repay my DPA, who do I contact? ). The Council will arrange for a valuation of your property every 3 years after payments under the DPA have ceased whilst the deferred payment amount remains unpaid. 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 the Council. Until this time interest and fees will continue to accrue. When the final payment is received the 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 your care manager. Please note that the Council is currently consulting on changes to its policy on deferred payments, which is due to end in July 2015, and therefore it cannot enter into any new deferred payment legal agreements until the results are known and the new policy is in place. When an application form is received, we will complete the necessary work, including valuing your property, to enable the deferred payment legal document to be completed when the new policy is in place. We will make payments to the care home on an interim basis until the legal process is in place and the loan is secured. If, for whatever reason, a deferred payment cannot be secured, we will write to you and provide notice that we will cease making payments to the care home. What happens if the Council cannot offer me a Deferred Payment? It is hoped that instances where this occurs will be rare, but can occur if: 1. You do not return the Deferred Payment Agreement 2. A co-owner will not sign the Deferred Payment Agreement 3. The Council cannot secure the loan with a first legal charge (subject to consultation) In these instances 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. 9

10 Please note, that Wiltshire Council will be paying your care fees on your behalf. If, for any reason, A Deferred Payment Agreement cannot be arranged, you will remain responsible to pay for the full costs of your care. There is no guarantee that a Deferred Payment agreement will go ahead. There may be instances where the DPA is not offered through no fault of your own, these include: 4. The value of your property means you have no equity as an asset 5. Your property is disregarded 6. It transpires that you do not have a beneficial interest in your property In these instances you can apply to the Council to fund your care. How much will it cost me to have a DPA? The overall costs will depend on the length of time the DPA lasts and any charges incurred in setting up and maintaining the DPA. The Council s charges will include: 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. The Council will keep track of all payments made, the date payments were made and the interest rates to be applied and will include interest incurred in your bi-annual statements. The Council is currently consulting on the amount of interest to charge, but the maximum we can charge is based on the government 15-year average gilt yield %. This figure is currently 2.65%. The 15-year average gilt yield, as set out by the Office for Budget Responsibility (OBR) twice a year in their Economic and Fiscal Outlook report. Legal fees Costs incurred for legal fees will be charged to you during the course of the DPA. The cost is about 500 to set up the DPA plus small charges of around 10 to check land registry documents. Valuation fees The Council will recharge costs incurred in valuing properties. Costs are generally in the region of 100 per valuation. As a minimum the Council will arrange a valuation as part of setting up the DPA, but re-valuations may also be required during the term of the DPA. 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, the Local Authority will need to look across all of a person s assets. This includes both capital (e.g. a property) or Income (e.g an occupational pension). This is to ensure that those who can 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 and regular income a person is allowed to retain. This is known as the upper capital limit and currently stands at 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 What is a property disregarded and when does it apply? A property disregard means that the value of your property will not be taken into account (disregarded) for the purpose of a financial assessment and 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 the Council, meaning you do not therefore need a deferred payment agreement. Instances where your home would normally be disregarded are if one of the following lives in your home as their main residence: your spouse or civil partner a relative over 60 10

11 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. 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. This means that the value of your property will not be taken into account (disregarded) for the purpose of the financial assessment and you do not need to use the value in your property to pay for your care for the 12 week period. This period is provided to allow you to decide how you would like to use your property to pay for your ongoing care. During this 12 week period you care will be funded by the Council; however you will still need to pay an assessed client contribution. You may also have to pay an extra costs where the cost of the care is above the rate the Council would fund, this is known as a top up. Please note that a top up can only be met from your own savings during the period of the 12 week property disregard. Once the 12 week property disregard ends the top up will need to be met by a third party and not taken from your own savings. You will be eligible for 12 weeks funding from the Council if: You meet points (i) (iv) of section Who is eligible for a deferred payment? above You are not already resident in a care home or supported living placement If you are already in a care placement, you will be eligible for the 12 week disregard if: AND You re home was previously disregarded or You are self funding 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. FAQ s Q. Do I need to sell my home to pay for my care? A. No you do not. The Deferred Payments scheme was specifically set up so that you do not have to sell your home during your lifetime. The Council does though offer the scheme to those who do decide to sell their home, in order to pay the care fees whilst the home is being sold. This is sometimes referred to as a bridging loan Q. I want to repay my balance on the DPA loan, who do I contact? A. Please either or phone the finance placements team on: FinancePlacements@wiltshire.gov.uk Telephone: 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 11

12 is added, you will receive a subsequent invoice for the extra amount due. The Council will not discharge any legal charge over the property until the amount due is paid in full. Q. Who is the contract for care between and who should inform the Council of any changes in the care homes fees? A. The contract for care is between you and the care provider as you are self funding your care. You must make the Council aware of any changes to care home fees during the duration of the deferred payment and provide the Council with a copy of the terms and conditions agreed between you and the care provider. Q. How are payments made to the care provider? The Council will make payments direct to the care provider, less client contributions and top ups unless you inform us in writing that you wish to receive the payment direct and pay the care provider yourself. The Council will take no responsibility for payments made to you which are not then passed onto the care provider. Q. What happens if I don t pay the deferred payment when the agreement ends? A. This will depend on the circumstances and what steps you are taking to repay the amount due. If the 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. The Council will not discharge any legal charge over the property until the full amount due is paid. Q. I do not have enough money to pay off the full balance of the deferred payment, what should I do? A. This could potentially happen as the eventual sale price of the home is not as much as anticipated. If this is the case you should inform us as soon as possible. You will be required to undertake a new financial assessment to ascertain your contribution towards your care based on your new financial situation. The 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. What is a top-up? A. This is the extra cost of your care placement over and above the costs the Council would normally pay, if you were funded by the Council. As you are paying for your own care, but deferring the payment until you can realise the value of your property at some point in the future, you must bear in mind that if you later apply for Council funding, the 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, the Council will consider if your needs must be met in another placement. Q. What happens if I don t return the deferred payment agreement or a co-owner will not sign the agreement? A. 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. Q. How will I know the balance of my deferred payment agreement? A. You will receive a DPA statement every six from the commencement date. 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. The Council will also provide a statement on request within 28 days. 12

13 Q. What do I do if I do not agree with your valuation of my property? A. You have the right, at your own cost, to instruct a valuer to value your property for you. You should inform the Council in writing ( accepted), with your valuers report. We will consider the valuation you have supplied but we are under no obligation to accept it. We will write to you to either accept your valuation or inform you of our decision on the valuation figure to be used. The 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. What happens if I own more than one property? A. You will not be offered a DPA 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. Q. What do I do if I have assets which I cannot convert to cash easily? A. You will not be offered a DPA or funding from the Council and you will either 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. The Council will arrange for a valuer to visit your home to value your property and you will be contacted directly by them to arrange this valuation. This valuation will be used to determine the equity value. Q. What interest rate will be applied to the DPA? A. The Council is currently consulting on the amount of interest to charge, but the maximum we can charge is based on the government 15-year average gilt yield %. This figure is currently 2.65%. The 15-year average gilt yield, as set out by the Office for Budget Responsibility (OBR) twice a year in their Economic and Fiscal Outlook report. Q. Is there a different process if I decide to sell or not to sell my home? A. Yes, until the consultation period is completed and the new policy ratified, you can request an interest free loan from the Council if you decide to sell your home. This will be secured by a solicitors undertaking rather than a deferred payment agreement. Q. Does the Council take any other forms of security into account? A. Yes, until the consultation period is completed and the new policy ratified, if you decide to sell your home, the loan can be secured by way of a solicitors undertaking Q. Do I need to provide an ID check with my DPA1 application. A. 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 Q. Can I rent my property out? A. Yes you can. You must inform the Council that you have taken the decision to rent out your property. You will required to provide verification of the amount of net rental income to be received and the period this will be for, for eg monthly. Your financial assessment will then be 13

14 recalculated to reflect this increase in your income, and your new contribution towards your care will become payable. If you decide to rent out your property please contact the Financial Assessment and Benefit Team on or Q. Do I need to keep my property insured? A. Yes it 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. What do I do if I decide to sell my home after the DPA is in place A. Inform us of your decision and provide us with the solicitors contact details so we can ask them for updates of the sale. Q. Do I need to pay a client contribution if I have a DPA? A. Yes. Q. Do I have to have to Deferred Payment Agreement? A. No you do not. 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 the Council to fund your care in the future. You must inform the 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 the Council for funding). Q. What checks do the Council do regarding my property? A. We will check the land registry records to determine that you own the property specified on your application form DPA1. The Council will also carry out a bankruptcy search against you. Q. What happens if the land registry check states I do not own a home? A. We will write to you to confirm why you believe that you own the property. This could be because it 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 the DPA can be offered to you. Q. My property is overseas can I still have a DPA? A. No. DPA s are only offered where we have adequate security in place, which is a first legal charge on a property in the United Kingdom. Q. Where can I get independent financial advice? A. The Council has identified two qualified and accredited independent financial companies with professional competency and accreditation in long-term care planning. These companies, along with a number of others, are approved by the Society of Later Life Advisors (SOLLA): Ashcourt Rowan, Tel: , wilts@ashcourtrowan.co.uk Care Fees Investment, Tel: , wilts@carefeesinvestment.co.uk The two organisations provide specialist advice and products specifically tailored to the needs of older people. Other Independent Financial Advisors are available and have the appropriate accreditation from the Society of Later Life Advisors. However, you should always check companies have this accreditation in place before discussing your financial situation with them. 14

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16 APPENDIX C FA11 Residents Name. (APR 13) To: Wiltshire Council I hereby agree to the Solicitor to the Council approaching my solicitor, (1) Messrs (2) who are dealing with the sale of my property, namely (3) to obtain a Solicitor s undertaking to secure the costs of my accommodation at, (4) now outstanding or arising in the future, to be repaid upon the sale of my property. (a) I acknowledge that the value of my property or my interest in it is valued at more than 23, (b) I agree to repay the Council any loan outstanding on the sale of my property (c) If a Solicitor s undertaking is obtained in the first instance, I accept that I will need to enter into a deferred payment agreement which will place a legal charge against my property if it is not sold within 12 months. Signed: ( resident/power of attorney/deputy) (Please delete as appropriate and provide a copy of the court order, granting POA / deputyship if signing on the customers behalf) Dated: Insert (1) Name of Solicitors (2) Solicitors Address (3) Address of Resident s Property (4) Care Home 16

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18 DPA1 - Application for a Deferred Payment (Loan) Please complete the information below to apply for a deferred payment. You should read the document Paying for residential or nursing care where people own their own property-interim guidance before completing this application. Applications should be returned to your care manager. 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 Care First Number 1.6 Current Address 1.7 Post Code Section 2. About the care you will Receive 2.1 Care Provider Name 2.2 Care Home address (if different to your address): : 2.3 Post Code 2.4 Contact Telephone number and Tel: 2.5 Agreed weekly 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 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 18

19 3.4 Do you co-own the property with someone else? Yes or No 3.5 if yes, is the property owned in equal shares? Yes or No 3.6 What percentage of the property do you own? % 3.7 Please provide name and address of co-owners below: Co Owner 1: Name Address Post Code Co Owner 2: Name Address Post Code Co Owner 3: Name Address Post Code 3.8 Are you selling or do you intend to sell your Property? Yes or No 3.8(i) Please provide details of your solicitors below: Company Name Contact Name Address Post Code Contact and telephone number 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 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 and also 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 ID Are you renting or do you intend to rent your property? Yes or No 19

20 3.9(i) If yes, what is the estimated rental income per month 3.10 Do you own or co-own any other properties? 3.10(i) If yes please provide property address below 3.11 Does your main property have building insurance in place Yes or No 3.11(i) If No, please state the reasons why below 3.11(ii) If Yes, please provide a copy of your current insurance policy with this application 3.12 Please briefly explain how you plan to maintain your property during the term of the DPA. 4. Declaration: I declare that: * I have received and read the documents entitled read the documents A Guide to Deferred Payments - interim guidance and Paying for residential or nursing care where people own their own propertyinterim guidance * I understand that I should seek independent legal advice before entering into a deferred payment agreement * I understand that in completing this application, the Council will, if I am eligible, arrange a deferred payment agreement after * I understand that I will be contacted to arrange a valuation of my property * 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 the 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) 20

21 Signature Date / / (dd/mm/yyyy) Capacity Customer / POA / Deputy 5. Documentation to include in your application: Please ensure you have included all the relevant documentation below (where applicable) with your application, * denotes required information * Copy of contract / terms and conditions with the care provider Copy of the court order appointing a Resident/Enduring or Lasting Power of Attorney OR Deputy appointed by Order of the Court of Protection. With this a letter or report from a medical doctor in respect of yourself as evidence that you lack capacity and also and completed form ID1 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 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 21