Deferred Payment Agreement with relative becoming 60

My Mother may need to go into a care home in the near future. Two of her sons live in her house but are not yet 60. Does anyone know the following?

1)     Once my brother reaches 60 will the remaining value of the house no longer be means tested, be it part of a deferred payment agreement, equity release scheme?  

2)     If a deferred payment agreement is in place could it be paid off once my brother turns 60 so the remaining value of the house is retained. We ask for balance on his 60th birthday, pay it off as such cancelling it and then say to LA you can’t mean test value of house as someone living there is 60?

Thanks

Mark

Replies

  • Alter_egoAlter_ego Forumite
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    I think you will find that the house value MAY be ignored if  a relation over 60yrs lives in the house.
    I am not a cat (But my friend is)
  • edited 31 October 2020 at 3:59PM
    calcotticalcotti Forumite
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    edited 31 October 2020 at 3:59PM
    You may find this guide helpful https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs38_property_and_paying_for_residential_care_fcs.pdf
    Section 8.11 has detail of what a DPA must include and one of the items is a requirement for the authority to provide a written statement every six months or within 28 days of request, saying how much is owed and the cost of repaying the debt.

    It also says at 8.14 that a DPA can be terminated in three ways, the first of which is “at any time by you, or someone acting on your behalf, repaying the full amount due”.

    I think logically that when the older son turns 60 the property disregard should apply from that date - but they must have been living there before she goes into the home. However I can’t see that this is specifically addressed in the guide. May be worth ringing the AgeUK advice line.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Jupiter74Jupiter74 Forumite
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    Thanks Calcotti. I've read similar to what you have brought out here. Shame it doesn't nail it down. Looking at a hypothetical example, if LA was paying for care and a person won the lottery you would think they would then means test the winnings due to the change in circumstances. Therefore when someone becomes 60 then the value is disregarded from that point onwards.
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