Friday, December 24, 2021

Fair Deal Nursing Home Support Scheme Ireland - Paying for Cost of Care in 2022

 

A recent report released by the Departments of Health and Public Expenditure and Reform revealed how so many residents of Private Nursing Homes paid greater amounts of cost of care, even after living under the Nursing Home Support Scheme (NHSS). For some people, the amount of weekly contribution was almost double the prices at public nursing homes.

Here is a fact check.

Nursing Home Support Scheme - What You Pay For

 For most of its part, The Fair Deal Scheme covers the basic nursing home costs like bedding, food, lodging and laundry. But it will not count for “extra” expenses such as physiotherapy, hairstyling, therapies etc. While your medical expenses will be considered for exemption from the cost of care, your future medical needs would have to be dependent on savings that are left off after paying the cost of care. Which is 20% of your cash asset + €36,000 out of your savings.

If you are planning for the future you have to consider that you are making arrangements for a time when costs are bent on rising, from what it is in the recent year.

A piece of recent news published in the Irish Times pointed out the situation, how between the years 2015 and 2019 the cost of care at public nursing homes have risen from €523 to €624.

The increased expenditures of €100 per resident per week borne by Public Nursing Homes were compensated by larger health budgets, putting the cost differential at 73% if invoiced to the NHSS.

 

What Makes The Costs Rise

The study report further indicated how the number of applicants for the NHSS funding has increased dramatically, 2.4% between 2015 and 2019, that’s 23,629 people. Meanwhile, the average price charged to the system for a public nursing home per resident per week increased by 13.3%, from €1,426 to €1,616.

The rising costs are an inevitable part of Nursing Home Care, with or without the Fair Deal.

Economic slump, rising costs, and demands of people will always stir the costs to change. In the recent report, the impact of the COVID-19 was a grave reason for “funding discrimination”  in nursing home care, posing a "challenge to sustainability" with some smaller nursing facilities having to close.

New Guidelines for the Fair Deal Scheme - To Sell or Not To Sell A House

But above all the hurdles, the Fair Deal Scheme is in the phase to change for real by the year 2022.

One major passing out happened in October 2021, with the publication of the HSE’s new guidelines, which would finally allow homeowners and farmers the 3-year Cap facility. It will allow them to keep their farmlands, principal residences and even sell a house after successfully paying the first 3years’ worth of cost of care.

The net proceeds will be charged as a cash asset until the client has been a resident of the nursing home for three years, after which they will not be chargeable.

 

You Need To Speak To An Expert Before Making A Decision

The fact remains that the Fair Deal Nursing Home Support Scheme would work differently for different people, and if you are not making a conscious decision, you might end up depriving yourself of certain benefits or exemptions.

It is critical to seek legal advice before selling a home while receiving nursing home care at this time. Because it may have ramifications for the person's future participation or eligibility for the fair deal, and because it will not benefit all people, notably those in Dublin with higher-value properties.

Friday, December 17, 2021

Asset Contribution and the House Rules of Fair Deal Scheme Ireland

 

Do you own a house that you wish to hand over to your family members or children? If you are a Fair Deal Scheme applicant this could get complex and to some extent impossible. But thanks to the new reforms of the Nursing Homes Support Scheme (Amendment) Bill 2021, there has been a new ray of hope for homeowners and farmland owners to secure their homes and farmland for their families while living under long-term nursing home care.


According to the terms of the Nursing Home Support Scheme, also known as the Fair Deal Scheme in Ireland, applicants could not simply pass over their home to their children in order to avoid having to pay an asset contribution. Your property handovers will be reviewed by the Health and Security Executive (HSE), and if you have done so in the five years leading up to your Fair Deal application, you may not be eligible for the payment.

 

The Nursing Homes Support Scheme (Amendment) Bill 2021 has passed the Oireachtas and is now awaiting signing by the president. And a lot of change and the good news is on the way that will make things a lot easier in terms of the Asset Contribution.

 

The Nursing Homes Support Scheme (Amendment) Bill 2021

 

This reformation demonstrates the scheme's position and commitment to protecting family farms and businesses from the costs of nursing home care.

 

Under new regulations, family-owned farms and businesses will no longer be included when calculating nursing-home care costs, when they agree to labour the farm or business for a minimum of six years.

The Extension of the 3-Year Cap on the Sale of Principal Residence

 

The Irish Government has stuck to the scheme's core principle of fairness by treating the residence and the revenues from its sale in the same way. The legislation not only establishes a 3-year asset contribution cap but also extends the cap on contributions to the cost of care, which is computed by comparing the value of a large residence to the proceeds from its sale.

 

The HSE has just announced new guidelines that allow residents to sell their homes once their application has been approved and they have been placed in care. The net proceeds will be treated as a cash asset until the client has been a resident of the nursing home for three years, at which point they will be charged as a liability.

 

The HSE has just announced new guidelines that allow residents to sell their homes once their application has been approved and they have been placed in care. The net proceeds will be charged as a cash asset until the client has been a resident of the nursing home for three years, after which they will not be chargeable.

This adjustment is meant to remove any barriers for those who want to sell their vacant property while on Fair Deal, which is an important consideration in the context of the housing crisis, according to the department.

 

Freedom From The Worry of Empty Houses

 

This modification would relieve many families of the burden of worrying about vacant residences and how to deal with them, as well as speed up the administration of estates once the resident has passed away. It should also help to free up much-needed housing that is now vacant.

While this is welcome news for many, I strongly advise seeking legal advice before selling a home, as the property may not be able to be sold due to the owners' lack of capacity, there may be implications for the person's continued participation/ eligibility for the fair deal, and it will not benefit all residents, particularly those in Dublin with higher-value homes.

Friday, December 3, 2021

Common Complexities Associated with the Fair Deal Scheme and How to Manage Them

 

As a concept the Nursing Homes Support Scheme is straightforward. The plan is aimed at providing full-time home or nursing facility care for a certain group of people who do not have the financial or familial means to care for them. For most of its part, the more you have, the more costly it will be for you. Many families and individuals face unprecedented complexities due to a lack of understanding of the scheme and taking unconscious steps in a hurry. This article is aimed to enlighten future applicants about all such situations and how to deal with them so that you can have a truly Fair Deal.

Understanding the Nursing Home Support Scheme Cost of Care

 

The core design of the fair deal scheme simplifies it to be most helpful for particular candidates who are on pension and have few or no assets.

 

This is because, while the plan provides financial assistance, it does not fully finance your nursing home care. The candidate must contribute 80% of their income and savings, as well as 7.5% of the cost of their non-cash assets.

 

For different individuals, the scheme works differently under the plan, although the contribution is the same for all unless the applicant has a spouse or family member with whom they share a home or income.

 

 

The Common Areas of the Fair Deal Complexities

 

Although the plan is open to everyone in need of long-term nursing home care. The layout of it entails that while you pay less if you have a low income and little assets, you wind up paying a lot more if you have a large estate - nearly as much as you’d be paying for private facilities. Now, nursing home care is not the only expense you’d be having, the following areas are often subject to complexities amid the application process:

 

       Tax Relief

       Medical Expenses

       Looking after a Spouse

       Looking after a family

       Understanding the significance of a Power of Attorney

       Guidance of family inheritance

       Guidance about family businesses and farms

       The nursing home loan scheme

  

Another major complexity is saving non-cash assets such as homes, farms and businesses. While cash assets can be transferred on a weekly or monthly basis, how can someone pay against a property?

 

This pushes the applicant to the clip wherein they have to sell their house or get it under the mortgage. The Nursing Home Loan or Ancillary State Support is what deters the applicant from selling or mortgaging their house. Meanwhile, the cash asset contribution would exempt Taxes, Critical Medical Expenses, Caring for a child or other unemployed family members. Moreover, the first €36,000 out of savings would be exempted too.

 

Thanks to the Dail, the new amendment is now in place which secures the 3-year cap for farming families and principal residences to get an exemption from the cost of care after a period of 3years.

 

You Can Consult Independent Care Representatives to Understand the Fair Deal Scheme Better 

 Independent fair deal advisors work on their own and are responsible for leading candidates through the process of application, management, making a decision and avoiding mistakes when seeking the Fair Deal Scheme. It is a safe way out when you can take the right step by asking the correct questions at the right time.

 Independent advisors can also act as a Care Representative to operate on behalf of candidates suffering from Dementia and other medical conditions that render them physically or mentally incapable to handle the procedure on their own. Care Representatives, who are often nominated by a family member or the HSE, represent an application and carry out specified acts on their behalf. They assist applicants who require care but are unable to complete the whole procedure on their own.


Friday, November 19, 2021

The Fair Deal Update: 3-Year Cap for Farmers Apply Before April 2022

 


Farmers are now eligible to apply freshly for the 3-year cap as per the Nursing Homes Support Scheme (Amendment) Act, 2021, by competing for the  ‘section 7’. Existing farming families paying the cost of care for the asset can apply too.

 

Because of the Covid-19 epidemic, a long-awaited 'fair deal' programme for homecare has been postponed until 2022. The law, which was first suggested in 2018, has yet to be developed for ultimate implementation. According to Mary Butler, Minister of State for Older Individuals, introducing a system to allow people to stay at home is now a priority for her, and she has pledged that it would be implemented by 2022.

 

The Nursing Homes Support Scheme (Amendment) Act, 2021

Came into effect this month after being signed into law back in July 2021 to reduce the amount that families will have to contribute to nursing home care. The new amendment of the Nursing Homes Support Scheme, went into effect this month after being passed into law in July to cut the amount of money that families would have to pay for nursing home care.

 

The Fair Deal for Farmers and the Future Generation

When calculating nursing home expenditures, the provisions of the nursing home assistance programme have been altered to provide more protection to farms or commercial assets that will remain in the family. The new guidelines of the scheme entail that after the initial 3years, the worth of the family-owned farms and businesses will no longer be included in the cost of care of the person who owns the farm or business.

 

This means family succession is possible and easier. Successors won’t lose their assets to the Fair Deal Nursing Home scheme. But there is a condition to do so. It is that the successors or a family member would have to stay back and work on the farm. If the farm is sold or given on lease to a third party, it would shift to the cash assets towards the cost of care.

 

It is critical to note that persons who are currently enrolled in the Fair Deal Scheme can still apply for the three-year limit if they meet the qualifying circumstances. So farmers can apply by filling out section 7' of the revised application form and sending it to their local Nursing Home Support Scheme office by April 20, 2022.

 

The Ministry Advises You To Act Fast

 

While the process is mostly straightforward, the cap cannot kick in until the application and supporting documentation including sworn affidavits are submitted to the Nursing Home Support Scheme offices. So, the longer you wait to submit the application, the more you will be charged a 0.14% fee on the capital worth of the family company or farm. This is time to act fast!

Thursday, November 11, 2021

Fair Deal Scheme in Ireland: Reforms and their Impact on Applicants



 

The Fair Deal Scheme has always been ‘fair’ with all its applicants. However, like every scheme requires timely updates to meet the evolving expectations, this has been no different. Owing to the requests of business owners and farmers, on 20th October 2021, HSE announced amendments to the legislation. Let’s check out how you can benefit more from it in the upcoming days.

Changes in Fair Deal Scheme in Ireland

Before going into the amendments, let’s recapitulate the aim of the scheme. As stated, several times before, the objective is to elicit an affordable contribution to the cost of care as per one’s means. So, if you own more assets and income, you must contribute more but less if you have insufficient means. Don’t worry about the balance as it’s the State’s responsibility!

Now, what two changes do you think the scheme has implemented? Take a look below: -

ü  An extension of the 3-year cap to business assets and family farms

ü  Three years cap on the net proceeds from the sale of a family home

Who is Going to Benefit from the Scheme?

You shall benefit from the Nursing Home Loan Scheme if you belong to any of the following groups: -

Ø  A beneficiary of the scheme, who is willing to sell off family home

Ø  A beneficiary, who has already sold off family home

Ø  Someone running a farm business and availing nursing home care at the same time

The rest of the details are constant. For instance, the facilities are reserved for all beneficiaries of the scheme, seeking care from public, private and voluntary nursing homes. You shall contribute the same 80% of your income and 7.5% of your asset value every year. The figures are the maximum you may have to pay.

A Little Insight Into the 3-Year Cap

While calculating the Nursing Home Support Scheme cost of care, certain assets shall count towards it for only 3-years. This is the cap HSE is stressing on. So, if you are a farmer or a business owner, you will now enjoy a 3-year cap on your family farm or business. However, this facility requires you to meet certain conditions. One of them is to appoint a family successor, who promises to run the business for six consecutive years.

The 3-year cap is also applicable to the net proceeds from the sale of family homes. It’s a sort of encouragement to owners under the care of Fair Deal, who no longer wishes to keep their homes vacant. Worried if it applies to beneficiaries who are enjoying nursing home care before 20th October 2021? Fret not, you just need to apply for the same within 20th April 2022.

Postscript:

Learn more about the changes from Fair Deal Advice in Ireland. Run by advisors, the team takes away stress and complications from the process to help complete applications on time. Go on and book consultations with them!

Friday, November 5, 2021

Fair Deal Scheme in Ireland: Good News for Farming & Business Families!

 

The Nursing Home Support Scheme (Amendment) Bill, which was long pending, came into effect from October 2021. Along with some major changes, it has brought good news for farm businesses and their families. Dying to know all about them? This post on Fair Deal Scheme in Ireland has everything listed for your convenience. Let’s check them out one-by-one!

Amendments to the Fair Deal Scheme

People owning business and farm assets are now exempt from the yearly 7.5% charge after completing the 3 years. The amendment aims to make their businesses viable for the long term and to benefit the next generation. Find more about the same in detail from the upcoming points.

Ø  Contributing to the Nursing Home Support Scheme cost of care and availing of benefits have no constraints on the viability of the farm businesses and other trades. Just make sure you qualify for the scheme.

Ø  On contributing a certain percentage of your income and assets to avail of nursing home care, you shall be eligible for the benefits as long as you need them. Of course, the State shall also pay its part to support you financially.

Ø  Every applicant must contribute 80% of their income and 7.5% of their asset value (inclusive of savings and property investments) towards the cost of care weekly.

Ø  Previously, the Fair Deal Scheme had no capping on how long will farmers and businesses have to contribute 7.5% of their asset value. Thankfully, there is one now, much like family homes.

Ø  This denotes the exemption of the farming and business assets from the three-year cap that once applied only to family homes.

Ø  However, the contribution from income (both cash and investment) shall continue indefinitely until the applicant no longer requires nursing home care. However, it’s a relief that at least there is a cap on business and farming asset value!

Ø  You can now sell off your Principle Private Residence (PPR) on completing 3-years of your involvement with the Fair Deal Scheme in Ireland. The HSE will not charge anything on the proceeds.

Ø  The benefits shall proffer only to “qualifying families”, who has been indulging in day-to-day farm operations in the last three years out of five. Another condition to abide by is the nomination of a farm successor, who would look after the farm business in future for at least six years from the moment the person is entrusted with the responsibility.

Postscript:

Looking for advice on Nursing Home Support Scheme? Stop over at Fair Deal Advice in Ireland! The advisory service provider can relieve your stress with insights and make your experience worthwhile.

 


Friday, October 22, 2021

Fair Deal Nursing Home Support Scheme - Make Guided and Informed Decisions

 

The question of whether or not to use the Fair Deal Scheme is a grey area for many applicants. The goal of this scheme is to empower seniors, both individuals and couples, who are not financially capable to pay for residential care on their own. The constant effort of the Irish government is to benefit the ideal candidate. This article explains how the scheme works for ordinary people and who stands to benefit the most from it.

 

Nursing Home Support Scheme: Ideal For Candidates Who Are Cash Poor and Asset Rich

 

Thanks to the newly passed Nursing HomeSupport Scheme (Amendment) Bill 2021, has vastly changed the way farmers and business owners would now pay for their long term residential or nursing home care.

 

While the basic policy stays true to the 2009 Act, where the Irish State Government provides individuals with necessary financial assistance in exchange for a partial contribution toward their long-term care costs. The contribution is based on 80% of income/savings and 7.5 percent of non-cash assets such as a home, land, or farmland. Certain taxes, such as income tax and other government taxes, are exempt.

 

Individuals are exempt from the contribution cost for the first €36,000 in savings or cost of assets. This increases to €72,000 in the case of couples with equal share of the assets, or if the applicant is caring for a family member, that may be a spouse, child, grandchild, a sibling or any other family member.

 

How The Fair Deal Scheme Works For Principal Residence and Farmlands After July 2021

 

For applications after July 2021, the three-year cap would apply to farmlands and businesses as it does to the principal residence. So that the value of family-owned farms and businesses will no longer be taken into account when calculating the cost of a person's nursing home care after three years under this change to the Scheme. However, this accounts to the condition that a family member would have to commit to working the farm or business, if the farm is sold, then the sale money might impact the revision of the Nursing Home Support Scheme Cost of Care.

Nursing Home Loan Scheme

 

With the Nursing Home Loan or Ancillary Support Scheme, the cost of the asset, such as the family home or farm, can be deferred for three years, or until the total 22.5 per cent (7.5 x 3) is met; this is known as the "three-year-cap." This does not mean you will not have to pay, but it does mean that the HSE will be able to seize your property after your death. If you have a family member living with you, or if you own farmland,

 

Back to Basics: Who Is Most Appropriate For The Fair Deal Scheme?

For different people, the scheme works differently. Basically, it can be a losing proposition for those with substantial assets and savings. But if you are radically cash poor and have a home or assets that you don’t mean to transfer to a family member, this scheme can be ideal for you to get long term care without many worries. Similarly, it also works the same way around that if you are already living under Nursing Home Care or paying rent, by availing the grant, you can bring quality nursing home care under your affordability.

The best step is to plan ahead of time. This is particularly useful for those who are unable to pay for residential care on their own and do not have an asset. The point of this scheme is that the more money you have, the more money you lose.


Friday, October 1, 2021

Fair Deal Scheme Ireland: What If You Can Rent Your Empty Home And Keep The Money


After the recent development of introducing the 3-year cap financial contributions for farming and business families, it is time for a new change that settles the housing problems associated with
the Fair Deal Scheme Ireland

President Michael D Higgins recently signed legislation imposing a 3-year cap on annual contributions to Fair Deal from the sale of a family home. Housing Minister Darragh O'Brien is now hoping that his plan to exclude rental income from the scheme can be introduced as an amendment to existing legislation when the Dáil reconvenes after the summer break.

You May Rent Out Family Homes While Living In A Nursing Home Under Fair Deal 


According to Mr O'Brien, more than 9,000 homes are left vacant as a result of conditions imposed by the Nursing Home Support/Fair Deal policies – which funds nursing home care – but disincentivize applicants from selling or renting their homes after entering the scheme and shifting to the nursing home. 


The Government Housing For All plan is aimed to change that system, by excluding the rental income from the scheme and allow old people to live in nursing homes to hold on to the income by renting out their vacant houses. 

Nursing Home Support Scheme Cost of Care for Principal Residence 


As a fair deal nursing home support applicant, if you own a house, then you would know that the cost of care includes 7.5% of the house’s current value to be paid annually. If the home is a principal residence and you have family members living there, then the contribution is capped at 3-years. Moreover, if you have a spouse or other close relative that has an equal share of the house, then you would only pay half the percentage, which is 3.75% of the portion of your share.


Earlier, Minister for Mental Health and Older People, Mary Butler TD, battled to get the Nursing  Homes Support Scheme (Amendment) Bill 2021 passed through the stages of the Seanad and the Dáil, and finally be in effect. The new reforms are more focused to optimise securities families and businesses with their loved ones in the Nursing Home. 


This is at a proposal stage, and no decision has been taken yet. And calculating how the previous amendment for farming families took years to come to effect, this too may take time to confirm. But it is nonetheless a fresh start for the scheme to get updated; it is nearing to complete a decade. Watch out for more news on the same. 






Thursday, September 23, 2021

How Fair Deal Scheme Contributions Work for Families

 

Succession leaves a big gap when it comes to planning the contribution as cost of care under the Fair Deal Scheme Ireland. 

Let's start with the principal residence. Applicants are entitled to pay 7.5% of the value of the property every year. The payment has a 3-year Cap. For instance, suppose the value of your house is €380,000 you have to pay €28,500annually for 3years. If you are co-owning the house with a spouse or other family member, then the amount reduces to 3.5% annually and 11.5% for 3years. 

You have to pay 80% of your income/pension/savings combined that leaves you with 20% to spend on your needs. So you can either save enough money from that 20% to pay this amount, or go for the Nursing Home Support Loan Scheme. In most cases, applicants require the loan. 

 

Paying For Nursing Home Care And Keeping The House

The amount you have to pay to the Nursing Home on a monthly basis is assessed at the outset. This reflects the income and assets earned by and owned by the person getting the Fair Deal. Unless the Nursing Home Support Loan scheme is availed, there is nothing to pay except the bill each month. After the first 3 years, the applicant would have to pay 80% of the cash asset each month. 

The total of 22.5% payment against the value of your property, once addressed, families get to keep the principal residence, even after the lifetime of their loved one. Now if the homeowner has availed the Nursing Home Loan, in that case it might be very difficult to keep the house. 

The Fair Deal Scheme Ireland: Income Assets and Families

It is only the applicant’s assets and income that is counted. Not of the families. If you have previously owned the property and handed it over to your children beforehand, then you may be exempt from the payments against the asset. 

But you have to disclose this to the HSE and let them decide. Even if you do so, you have to pass at least 5years to apply for the Fair Deal Deal Scheme. And it only applies to first time applicants. If you have already been rejected once, you may apply again after 6month. But if you reapply after a property transfer, you will never get approval. 

Which is why, it is always advised to consult a Nursing Home Support Scheme Guide before your first application. Because, despite the fact that the rules appear to be straightforward, there are minor nuances in the policy that can have a significant impact on your eligibility for funding.

 

Best Benefits For The Cash Rich and Asset Poor 

The Fair Deal scheme is intended to target financially disadvantaged individuals in order to provide quality nursing home care. All of this is theoretical. Those who do not have children or family members to pass on the primary residence have the greatest advantage. Even better, if you live in a rented apartment, you are completely exempt from paying the asset payment!

Individuals who are single and in need of proper care in their old age are given top priority under this scheme. Ideally, their home and other assets are streamlined so that they only have what they need to live comfortably in nursing home care. 20% of their income and €36,000 in savings





Wednesday, September 15, 2021

Fair Deal Advice - How Can We Help?

 

Let’s chalk out a situation where someone close, especially a family member, has reached a stage where admitting them to a nursing home is the wisest thing to do. The first step is to conduct a quick R&D using the search engine to find out about the available nursing homes near you. And, the second most immediate step is to apply for a Fair Deal Scheme to sort out the financial matters. It’s evident from the scenario that Nursing Home Support Scheme (NHSS) is the most important thing today. It’s as vital as having health insurance planned to share the burden of hospitalisation bills with the Irish Government.

There is no wonder why private and confidential advisory service providers as Fair Deal Advice exist. As an organisation, we work with a team of advisors and accountants to help potential applicants understand the process and encourage them to enrol. However, this was just a part of our services. Let’s check out what other solutions can you expect from us.

Services Offered to Every Applicant Seeking a Nursing Home Support Scheme Guide

  1. Consultation

At the onset, potential applicants have several doubts about the rules, things to avoid, do’s and don’ts etc. Some are generic, whereas others are specific to your situation. All these questions need answering. Under the stewardship of Tom Murray, we pass on the relevant information to those applying for the NHSS. Post consultation, the ideas shall be clear to you. You can then decide whether to proceed or dump the plan. Most of the time, they go in favour of it.

  1. Filling up of the application

Now, the service above covers almost everything. Enclosed below are the rest that is looked into: -

ü  Analysis of the individual’s situation from a financial and medical perspective to check if the person is eligible for NHSS

ü  Determine the optimal structure of the application to best suit the applicant’s financial situation

ü  Map out the contribution of the applicant and that of HSE

ü  Hand out a booklet enclosing all the necessary information about NHSS for reference purpose

ü  Fill up the application form on your behalf to take away the stress

ü  List down the impact of NHSS on your pension and income

Book an Appointment!

The NHSS is quite complicated with endless terms and conditions. It’s challenging for a new applicant to understand them without getting confused. That is when we step in and simplify life. In exchange for a nominal service fee, imagine setting yourself free from the turmoil - both physical and emotional. More than that, it’s the satisfaction of watching your loved one receiving the desired level of care at a nursing home. Get your appointment today if you are convinced of the services!

 

#Nursing Home Support Scheme Guide #Fair Deal Scheme #FairDeal

Friday, September 3, 2021

Fair Deal Scheme Case: Can an Applicant Pay for Bills and Gifts after Enrolment?

 

Despite the fairness of the Nursing Home Support Scheme, situations arise where one is compelled to question it. However, every time, the Fair Deal Scheme proves its relevance in the life of the elderly. A similar case has been discussed here. You may find yourself in a similar position in future. Therefore, it is better to check out every possible scenario and act accordingly to benefit from the scheme.

Situation:

Suppose you enrolled for the Nursing Home Loan Scheme. Now, the question is - how will you support the expenses that you earlier used to cover? For instance, you may have health insurance, house insurance, bills for activities and hairdos to pay. You may also have grandchildren. What if you feel like gifting them money for their satisfactory academic performance, birthdays, little achievements etc? Many of you may suggest bearing the expenses from her savings. But is that accessible, given her enrolment in the scheme?

Resolution:

Firstly, the case can be distressing for someone who has to see his relative moving into a nursing home to seek long-term care. Let’s think practically instead of emotionally. If any of your parents have sought the Fair Deal Scheme, it is a wise decision on their behalf. The Irish Government via HSE is willing to bear a part of the expense, but the problem crops up when 80% of your income and 7.5% of your assets goes into meeting the cost of care. One is often left with little to support lifestyle.

However, let’s get this clear. Certain things like tax bills, local property tax and outstanding loans are deducted from one’s income before the 80% assessment is run. Similarly, others like ancillary expenses for the applicant in the nursing home, including activities for hairdressing are not taken away. Since these are all necessary to remain physically active, mentally sound and for maintenance of self-image, paying from the 20% that one retains is quite reasonable.

Speaking of insurance for the family home, despite the contribution towards the cost of care, most of the applicants choose to retain the asset. The reason is pretty simple. If the only surviving owner sells off the property, the money thus received shall move into his savings account. As we all know, the same is subject to 7.5% towards Nursing Home Support Scheme cost of care. It hardly makes sense to contribute from that part of one’s income.

In a nutshell, a lot of expenses are covered by the 20% residential income. After all this, monetary gifts to grandchildren or anyone seems impractical. And even if some amount was made in the past 5 years, those shall count when HSE would assess the savings of an applicant. However, the decision to make such monetary gifts is still the applicant’s choice. It's definitely possible but may end up straining the balance left for covering emergency needs.

Wrapping up:

Revisit this blog section to know more about such cases happening in the lives of applicants and never feel yourself to be alone. There is always a resolution to every scheme problem. There is also a way to tackle similar instances. It’s approaching a Fair Deal advisor right from the beginning to avert such issues in the very first place. Now, it’s your call. Make it count!

 


Friday, August 27, 2021

Is Fair Deal Scheme Applicable for Someone with No Family Assets?


If you are a citizen of Ireland, you shall be knowing about the Fair Deal Scheme. Alternatively called the Nursing Home Support Scheme, it’s a thoughtful initiative on the part of the Government to financially support people requiring long term nursing home care. However, the terms and conditions clearly state that applicants have to contribute 80% of their income and 7.5% of their asset value every year to avail of the Fair Deal Nursing Home Scheme. But what if the applicant has zero assets in possession? Does that mean the individual shall be deprived of home care? Similar cases arise every day and leave potential applicants in distress. Hence, we thought about discussing the situation under this Nursing Home Support Scheme guide.

Case of No Family Assets

If you are a part of a couple, you have every right on your spouse’s assets upon his/ her death. This clause stands applicable even if your spouse has transferred all property, savings and everything under a will to siblings, children or any other relative. In Ireland, it’s called a legal right share. Have children at home? You have rights over one-third of the property. Have no kids? In that case, you have right over half of the property. Make sure you claim it within 6-12 months after your spouse’s demise.

As for family home is concerned, no matter how terminally ill your spouse is and fails to contribute to your nursing home care, the property belongs to the couple. So, you also have right over it. If you check the Family Home Protection Act of 1976, you shall come across a clause where it’s clearly mentioned that a spouse has all rights over her in-law’s property and that the family home cannot be sold unless the couple together has agreed over it. In a nutshell, both the spouses have equal rights over the estate, irrespective of ownership.

Now, if you recollect the points discussed above, you shall discover that in a way, you do have income and assets. If you apply for the Fair Deal Scheme, HSE shall calculate your contribution based on half your assets and half your family income. The charges come to around 3.75% per annum if your spouse is alive, but if not, it would rise to 7.5% of asset value. As for income contribution is concerned, it stands around 40% of the family income if your spouse is breathing. But this may exceed to 80% of State income upon the death of your spouse. The assumptions here are: -

ü  You are unemployed and have retired

ü  You have a spouse, but your partner is terminally ill and has retired

ü  Your spouse is unable to afford your nursing home care cost

ü  You have a family home even if your spouse has transferred the ownership rights to your children or siblings

If, for instance, you die while seeking nursing home care under the Fair Deal Nursing Home Scheme, the charges shall be levied against your family home. Your spouse may defer the nursing home loan until he/ she dies. But in case of death, your family can postpone the payment only for 12 months.  After this, someone representing you both shall have to contribute.

Wrapping up:

The Nursing Home Support Scheme is quite flexible and always finds a way to support you financially. Let’s not worry about assets or income. No matter what the circumstance is, you shall eventually draw benefits from HSE. It might appear, at first, that you have no property because you or your spouse has willed it to someone in the family, but it shall continue to be your family home, and HSE shall levy charges against it. As for income, even if you have zero savings, you are always eligible for a State pension, and the concerned authorities shall charge from there towards the Nursing home support scheme cost of care. Appoint an advisor if you still have doubts in mind.

 

Friday, August 20, 2021

When Do You Need A Power of Attorney - The Fair Deal Scheme

 

There is constant talk about the importance of having an Enduring Power of Attorney in place, for senior individuals, especially, when it comes to decisions like applying to the Nursing Home Support Scheme.

Why is it that important?

The lack of an Enduring Power of Attorney may reject your approval to get Nursing Home Care funding if you are not mentally capable to consent to the decision. A common complexity faced by individuals suffering from dementia! Here's everything you need to know. 

What Is An Endurance Power of Attorney  

Power of Attorney (PoA) and Endurance Power of Attorney (EPA) are two different things. While the former is focused on business processing, the latter is more about personal life, personal finance and assets and medical needs. Without having an Enduring Power of Attorney, it is illegal to access or use a person's money. It is a legal document wherein a person acts as a "Donor" and appoints a trusted person as their "attorney" to act on their behalf to make crucial life and financial decisions, in the case the former becomes mentally disabled.

How EPAs Impact Fair Deal Scheme Approval 

 Every year, the Fair Deal Scheme rejects hundreds of such applications where the applicant lacks the cognitive capacity to make decisions for themselves and their family members aim to arrange for nursing home funding. Isn't that heartbreaking? Do you know the reason? The absence of an Enduring Power of Attorney!

In Irish Law, which is pretty much the same in every other country, assessing or using someone's money and assets is illegal.

Now, senior citizens are highly vulnerable to dementia, paralysis and many other ailments that affect cognitive power. Such health disorders can cause mental instability, memory loss and overall lack of mental capacity to make a conscious decision about their finance, property, personal care or nursing home care.

Now, it often happens that individuals who need Nursing Home Care lack the mental capacity to consent to it, let alone carrying out the application process, et all. In such cases, it is only radical for loved ones and family members to step forward and act on their behalf. 

Family members can place their loved ones under private Nursing Home Care at their own expense. However, the framework of the Fair Deal Scheme is different from private nursing home care.

To get the grant, one has to merge their own income and assets with the scheme. That is the only way to do it. Family members cannot intervene in bringing their assets and income, and it won't be functional either since they would be using the home and the money for living.

If joint signatures are not in place on bank accounts or if a Power of Attorney or Enduring Power of Attorney is not in place, the applicant may have a large sum of money in the bank and property that cannot be accessed.

Conclusion

More and more senior citizens are activating their Endurance Power of Attorney. Without this document in place, property owners may get locked out of their assets for good. So get it done now if you have not passed on the property to your family members.


Thursday, August 12, 2021

Fair Deal Scheme in Ireland Undergoes Drastic Changes: How Have Farm Families Been Benefitted?

 

The long-awaited amendment to the Nursing Home Support Scheme for the welfare of farm families has finally been made. All thanks to the Ministry of State for Mental Health and Older People for realising that it’s unfair for the needy farmers and small businesses to contribute 7.5% of their assets annually towards the cost of care! Mary Butler, the head of the Ministry, also ensured enforcement of the changes before the Dáil summer recess, which was due from 16 July. It’s a moment of joy for farmers who were once worried about their land at stake due to a serious health condition plaguing their avenues to earn in future. Now, those who were oblivious of the situation, let’s take you around.

What was the Situation before the Laws were Passed?

There were times when farm families risked the sustainability of their lands for the sake of affording nursing home bills for long-term care. They feared that nothing much would be left for the next generation, making passing down of the farmland a far-fetched dream. Why so? That is because the Fair Deal Scheme in Ireland necessitated applicants to pay 7.5% of their land’s value every year towards the cost of care of their near and dear one at a nursing home.

If you observe closely, you will find that the contribution was not time-bound. This was worrisome for farm families as they lost the value of their land to afford treatment for an ailing family member.

What are the New Amendments?

According to the new amendment bill, the 7.5% contribution stands capped at 3 years. If you already have a family member undergoing long-term treatment at a State-approved nursing home, then your contributions shall stop immediately. However, if you are in the middle of 3 years, your payment shall cease after completing the stated interval. Unfortunately, the State is not providing reimbursements for past payments.

Eligibility Criteria for a Family Farm Successor

Since the person-in-care is undergoing treatment at a nursing home, the individual must appoint a successor from the family to carry on with the farm operations. Let’s check who all are eligible: -

ü  Someone, who has put in efforts for the past 3 years to run the farm business

ü  It can be anyone who has been working in the farm, irrespective of remuneration

ü  Someone ready to declare that he has served the business, working full-time or as deemed fit

ü  The person should have run the business for at least 3 years in 5 years, not necessarily at a stretch but aggregate

Postscript:

Fair Deal Scheme in Ireland is constantly evolving. It’s challenging for someone involved in business to spare even a few minutes to go through the new changes. That is why Fair Deal Advice, an advisory body offering confidential one-to-one service is crucial. Know your benefits from them and save yourself from going off-track.

 


Friday, August 6, 2021

The Fair Deal Scheme Ireland - Moment Of Achievement For Farming Families

 


The long wait is finally over for farming families seeking the Fair Deal Scheme in Ireland because the Nursing Homes Support Scheme (Amendment) Bill 2021 is finally passed by Mary Butler TD, The Minister of State for Mental Health and Older People. Here’s all you need to know.

What Is The Nursing Homes Support Scheme (Amendment) Bill 2021 And What Does It Mean For Farming Families

 

The effect of this bill would now put qualifying Farming Families and Business Families much at ease. The FairDeal Scheme requires applicants to contribute a portion of their income and assets to fund their Nursing Home Care costs, which is clubbed with Government support to make a substantial lifetime plan under quality nursing home care. 80% of income and savings are paid on a weekly or monthly basis. 7.5% of total assets, including farmlands, used to be paid annually.

 

After the effect of the bill, families would only have to pay the cost of care contribution against their farmland and business for the first 3years while their loved ones stay under Nursing Home Care. Only the monthly payment of 80% of income would carry on. This would mean a great deal of financial relief for farming families. A similar policy has been updated for Principal Residences also, by extending the three-year cap on contributions to the cost of care. It reduces the need for the applicant’s primary residence sale and now farmland/business sales would not be needed to fund a loved one’s Nursing Home Care.

 

HSE is yet to release a formal Nursing Homes Support Scheme Guide. But by approving this bill, the Health Ministry aims to grow more fairness and affordability of the Fair

Deal scheme. Moreover, this move can also remove any barriers for those who want to sell their vacant property while on Fair Deal, which is a critical issue in the current housing crisis in Ireland. However, it is not that having farmland as a property is sufficient to qualify for this exemption. The policy is only available to family successors who are committed to working on the farm or business.

 

Eligibility Criteria for Getting The Farm Relief On Nursing Home Support Scheme

 

The new policy updates are not for everyone, certain conditions and qualifications must be met. The family has to run the farm only then will the 3-year cap work.

 

Another significant upgrade to the policy is that applicants and their families would also be able to sell their house/principal residence if they want to, after the first 3 years of using the Nursing Home Scheme for a loved one. And the best part is that the proceeds will no longer be accessible as financial contributions. Families won’t have to share the money from house sales with HSE.

 

Earlier, if the farmland or business shares were sold, even with the 3-year cap for principal residences, the sale money from the property would change into cash assets and families would have to contribute a big portion of the money towards the cost of care contribution. Not anymore! From now on, once the 3 years are over, you can use your property as you like. However, not the same goes for farmlands and businesses, you have to either run the business or go back to paying the 7.5% annual contribution!

 

While the bill is passed, the new adjustments are not fully in effect. The Health and Security Executive (HSE) is yet to issue the complete guide on how the new amendment would pan out for eligible families. Especially, how it will impact the Ancillary State Support or Nursing Home Loan Scheme  It is only a matter of time, the bill is approved for sure. Watch this space for more information.