Property Disregards for Care Funding
Reasons to choose Wilson Browne
If a care assessment results in you or your loved one moving into a full time care facility, the Local Authority may need to complete a financial assessment to establish how your fees will be paid.
If you own a property this is often taken into consideration during your financial assessment, but certain mandatory disregards can apply so the value of your home is not considered.
Mandatory Property Disregards
In certain situations, your local authority must disregard the value of your home when assessing your ability to pay for care. These are known as mandatory disregards.
Your home will be disregarded if it is still occupied by one of the following:
- Your spouse, civil partner or former partner
- A relative aged 60 or over
- A child under 18
- A relative who is disabled or incapacitated
This disregard will continue for as long as the qualifying person lives in the property.
The 12-Week Property Disregard
If you move permanently into a care home and own your home, the value of your property will be disregarded for the first 12 weeks of your stay.
This temporary disregard gives you and your family time to consider options such as:
- Selling the property
- Entering into a Deferred Payment Agreement (DPA)
- Exploring other funding arrangements
After the 12 week period, the property will be included in the financial assessment unless a mandatory disregard applies.
Deferred Payment Agreements (DPA)
If your property is not subject to a mandatory disregard, and you do not want to sell your home immediately, you may be eligible for a Deferred Payment Agreement with your local authority.
Under a DPA:
- The council pays for your care home fees
- You repay the amount later, usually when your property is sold or from your estate after death.
To qualify for a DPA, you typically must:
- Be receiving permanent residential care
- Own a property not already disregarded
- Have capital (excluding your home) below the upper limit (currently £23,250 in England)
Interest and administration fees may apply.
Other Types of Disregard
- Receiving care at home: If you receive care in your own home, the value of the property is not counted in the financial assessment.
- Temporary stays in care: If you’re going into a care home temporarily and intend to return home, the property is usually disregarded during your stay.
Discretionary Disregards
If someone else, who does not qualify for a mandatory disregard, is living in the property, the Local Authority has discretion to consider disregarding the property. They do not have to disregard the property but should give reasons why they are not following any request to do so.
If you are not sure whether a disregard applies to you or your loved one’s financial assessment for care funding, then get in touch and we can review the circumstances and advise if they are correct.