Back calculation for nursing home stays - What it means and what you should know, especially when settling estates

Many heirs find that long after a death they are notified of a retroactive calculation for nursing home care. Here we explain why you receive this and what you should do.

What does recalculation mean for nursing home stays?

When a person moves into a nursing home, the main rule is that they must pay a co-payment for their stay. This is an amount paid to the municipality to cover some of the costs associated with food, housing, nursing and care. How much you have to pay depends on your income and assets.

The municipality calculates this co-payment based on information it receives about the resident's finances. In some cases, it may turn out that the co-payment has been calculated incorrectly, or that there have been changes in the resident's finances since the calculation was made. In such cases, a so-called recalculation may be necessary. This means that the municipality will reassess the case and calculate what the co-payment should actually have been.

Why is recalculation carried out?

There are several reasons why the municipality may decide to recalculate the deductible:

Changes in the economy: If the resident's income has increased or decreased, for example through inheritance, the sale of a home or a change in pension, this can affect how much you have to pay.

Error in previous calculation: Perhaps the wrong figures were used, or there was a lack of information when the deductible was first calculated.

Lack of documentation: Sometimes it takes time to receive all the paperwork, such as tax returns. Once everything is in place, the municipality can make a new and correct calculation.

Refund or post-payment: If the resident has paid too much, you get money back. If they have paid too little, they will have to pay what is missing. The municipality can often offer a repayment scheme if the amount is large.

Significance in the event of death - what should you do?

Liability for debts: In the case of private probate, the heirs assume personal liability for all debts of the deceased, including any back payments from the municipality.

Proclamation: It is a good idea to request a so-called proclamation before the probate is opened or at the earliest possible time after the death. With a proclamation, all possible creditors are given a deadline of six weeks to report any claims to the heirs. Claims that are not reported within the deadline are lost and cannot be claimed at a later date.

Recalculation can take a very long time: A recalculation can arise a very long time after the death, and often after the inheritance has been distributed among the heirs. There are a number of examples of back calculations with hundreds of thousands of kroner in outstanding claims that have emerged several years after the death. This can cause major problems if the inheritance has already been used up.

Summarising

Post-calculation for nursing home stays is a scheme to ensure that the resident pays the correct deductible based on their financial situation. This is routinely carried out for all estates where the deceased has lived in a municipal institution before death. It is therefore important to realise that this is a relevant issue for the vast majority of estates. However, it is easy to avoid unpleasant surprises by taking the right steps early in the process.

If questions or disagreements arise in connection with post-calculation, Advokatfirmaet Halvorsen & Co AS can offer guidance and legal assistance. We can also assist with issuing a proclamation, as well as other tasks related to the estate.