When you are applying for the Fair Deal Scheme,
the care needs assessment is the first step that makes sure and certain of the
care needs or requirements you have and how much it is going to cost. The
Financial Assessment stage ascertains how much you need to pay. Fundamentally
the Financial Assessment guidelines are largely designed to evaluate the
applicant’s income and assets, which might turn up disregarding the
individual’s capacity or willingness to give away the same. So the golden
question remains- is the scheme right for you? Here’s all you need to know
about the financial aspect of the grant.
Even though the Fair Deal Nursing Home Scheme is
open to all, and people of all ages, the scheme is ideally designed for a
specific category of people. Let’s answer the bottom line first, that this
scheme is the most beneficial for pensioners, single or widowed individuals,
and someone not only have limited assets and low income but also doesn’t have
to worry about the succession of their estate, farm or land if anything is
there. But if you are someone with more assets and huge savings, then this
scheme can drain you 80% of your property and savings.
So what matters is, what you have and what you
are willing to give, as an investment for long term nursing home care.
What You Have To Pay
On a general scale, the applicant has to pay 80%
of their income, which will include personal savings, earnings through renting
out of a property, any Government allowances, earnings from a shop, personal
shares and stocks. Next up, is the evaluation of your non-cash assets, such as
private home, farm, business, and land, against which you’d have to contribute
7.5% annually. In some cases, the 7.5% contribution can be capped after 3years.
So you have to pay a total of 22.5% the value of your home or property.
The first €36,000 of your income is exempted from
the count. Moreover, the payment structure is halved in case you have a husband
or a wife still living in your house, and who might also have a fair share of
the savings. So for couples, the contribution becomes a split of the primary
cost - so they have to pay 40% for income and 3.5% for non-cash assets.
Note, that valuables such as antique pieces,
furniture, jewelry, and cars are not radically counted as assets, until and
unless you use such things for financial gains, such as pawning or leasing out
your car. In such cases, the money you received in the process will be counted
as a cash asset and is most likely to affect your cost of care contribution
amount to increase.
How The Financial Assessment
Works
The financial assessment is run by the HSE,
wherein the designated person will contact you, and ask for the following
documents:
●
Pension Statements (If Any)
●
Up-to-the-date bank details and
statements, as well as details of any savings, account in any bank or private
financial institutions that you deal with. It is good to know that you may be
asked to provide bank statements for several years up to 5years, most
significantly when any situation of asset transfers are involved.
●
If the applicant is associated with a social
welfare or Government allowance programs, then they have to mention it and must
present any evidential document to verify the same.
Basically, the financial assessment is the review
of all your data that can direct a detour of your ‘financial condition’. The
financial condition can be often contradictory to the actual financial
capacity. But for that, you will have time to decide that this thing is ideal
for you or not.
Early Plans
It always makes up for a good decision to plan
ahead, especially if you want to transfer your property to your children or
grandchildren. You may appoint a special Nursing Home Support Scheme Guide to
help you throughout the process. Having a Power of Attorney in place can also
be helpful for later when you can find it easy to appoint someone else, such as
a Fair Deal Attorney to handle the grant application on your behalf, later in
life.
The Ancillary State Support - Nursing Home Loan Scheme
The Fair Deal Loan scheme is created for those
families that need to defer the sale of the land, farm or home. Under this
scheme, families can defer the payment of the Asset-based contribution until
after the lifetime of the applicant. It is an unnecessary rule that one has to,
after all, mortgage or sell the house that is in the name of the applicant.
With the provision of the Loan, it is possible to delay the inevitable.
Exemptions and Relief
There can be tons of exemptions and relief from
the cost of care, which includes the payment of income tax, medical and
therapeutic expenses, caring for a child, and a host of other obligations.
So it is possible to have a holistic settlement
with the Fair Deal Scheme if you know how to work things out in the right way
and the right time.
