To Sell or Not to Sell Your House? Fair Deal Advice Counsels Spouses with an Ailing Partner

Fair Deal Scheme has simplified the lives of many with the Irish Government funding the long-term nursing home care bills of its applicants. However, the situation still appears tough for some of them, especially for couples occupying the family home all alone with no earning family member and their spouses availing the benefits of the Nursing Home Support Scheme. Many resorts to way outs like selling off homes and moving to retirement centres. They are mostly worried about tax implications after the death of their life partner. The question is - how wise is it to sell off family homes to support their living after their mates pass away, or let’s say even under the Fair Deal Scheme? The post today shall throw light on this fact so keep perusing till you find the justification to quench your curiosity and bring you peace of mind.

The Problem

As we all know, Fair Deal charges 3.75% on assets and 40% on income when calculating contributions for couples. There’s also the privilege of availing of a nursing home loan to cover the balance in case one fails to afford them. From the outset, it’s quite fair and considerate towards applicants, especially couples. Despite the facilities, many applicants still face challenges in paying for the nursing home care for their spouse. That’s when they think of getting rid of the property to support your lifestyle. However, it’s not quite a sustainable resolution since the spouse’s care shall ultimately eat away the money obtained from the sale of your family home if the person continues to live longer. As for affording the rent at the retirement centre is concerned, the life partners of Fair Deal beneficiaries would need steady income or ample savings to support their stay. Managing everything can be a bit challenging.

The Resolution

Getting rid of a family home while your spouse is still alive at the nursing home under Fair Deal for the sake of paying the bills is a reckless thing to do. The wisdom lies in retaining the property for as long as your life partner is breathing. On demise, the HSE shall charge no more against your property with the maximum payable to be 11.25%. Moreover, you may have to repay the Fair Deal loan right after selling off your property with no further deferring of the borrowed sum. This may not be discouraging though. However, Fair Deal Advice - a team of advisors for the scheme applicants, believes it’s best to sell off your assets if the cash obtained meets both the long-term care needs bill and supports your shift to a retirement centre thereafter.

Postscript:

Such situations are best tackled under the guidance of Fair Deal advisors. Seek the advice of them without letting the complications stress you out! In case you are seeking the finest in this field, get in touch with Fair Deal Advice - an Ireland-based company offering private and confidential advisory services.

Fair Deal Scheme in Ireland: Are You Paying Double the Contribution Towards Nursing Home Care?

 

Fair Deal, the scheme which promises the elderly financial independence, often evokes curiosity in the minds of individuals. One of the common doubts for those investing in Approved Retirement Funds (ARF) and shares is whether this together with Fair Deal Nursing Home Scheme is charging double your contribution. Things like whether it’s worthwhile to divest assets before applying for the scheme is also a universal query among those approaching old age. If you are among them, then you are in luck today because the blog post is all about divesting, ARF and shares.

Is Divesting a Good Idea Before Applying for Fair Deal Scheme in Ireland?

Let’s admit that no one consciously wants to pay the State more than what is desired. Knowing that Fair Deal Scheme demands a 7.5% charge on assets, savings and investment, many individuals gift a certain part of their assets to a family member to evade and minimise the expense. The question is - how wise is the decision?

If you apply for the Nursing Home Support Scheme within 5 years of gifting them a fraction of your assets, there is no point in taking this step. That is because the financial contribution shall still cover the value of those assets that went into gifting. However, if you feel there are no chances of you seeking nursing home care anytime soon and can meet the 5-year threshold then divesting is a good idea.

What if you suddenly fall sick? In that case, you may delay applying for Fair Deal Scheme until you meet the 5-year threshold by spending for the bill from your pockets. However, it makes no sense to pay a hefty amount worth €100,000 towards the nursing home bill just to save a fraction of your assets.

What About ARF and Shares?

ARF, as we all are familiar with, is the control exercised over retirement savings by people serving the private sector. Under the scheme, the investor must withdraw at least 4% every year till the age of 71 years, after which it rises to 5%. Whether you take out from that account or not, you shall have to bear the brunt of the tax.

If anyone from that segment of the population, working in the private sector applies for Fair Deal Nursing Home Scheme then the 80% contribution from annual cash income shall apply on that withdrawal. The rest of the fund value is counted under 7.5% asset contribution. Now, many of you might question the State for charging you twice, once for nursing home care and the second time for the sake of income tax. People undergoing such a circumstance must know that the purpose of Fair Deal is to provide access to nursing home care to the needy and not save their assets. Despite that, the scheme is liberal enough to leave over 3/4^th of your family home value for your successors. However, if you still feel the contribution towards long-term nursing home care is exceeding the cost borne from your pockets, then Fair Deal Advice in Ireland feels it’s better to manage the expenses all by yourself though it’s not a very smart step to take. A word of advice would be to plan by checking the details of the Nursing Home Support Scheme in advance because health-related exigencies arrive uninvited.

Postscript:

An advisory body as impartial as Fair Deal Advice in Ireland can walk you through the process and eliminate all your misconceptions regarding the scheme introduced by the Irish Government. You just need to fix an appointment with the advisors as soon as you decide on taking financial help from the State and clear your doubts without falling for delusions.

 

Nursing Homes Support Scheme Guide - Researching And Choosing The Perfect Nursing Home

 

 

Whether you are looking to place yourself or a loved one under Nursing Home Care, start researching the facilities early on and don’t wait until the moment you are ready to move.

Because as this is going to be the New Home for future residents, it is crucial to understand that all Nursing Homes are not the same, so take more time to research, check out the facilities in person, meet and evaluate the people, and leave no room for preconceived notion about this being a comfort zone and whether you or your loved one would be adjusting well in the new environment. Moreover, there are many hospital patients who need direct Nursing Home placement after getting discharged from the hospital. So family members or caregivers should consider the importance of having prior knowledge about the best facilities to place the patient, and avoid impulsive searches at the last minute.

 

Researching Facilities, Budgeting, And Considering The Fair Deal Scheme

 

It is an established fact that In the Republic of Ireland, Nursing Home Care is expensive, and sometimes it is even unaffordable for individuals with below-average financial assets. On average Private Nursing Homes charge anywhere between €1,200 to €2,000 per week. While under the Nursing Home Support Scheme it is roughly around €1,080 to €1,395.

So you see, the scheme does not wholly take away the cost, and you still would have to pay for it. The amount, of course, depends on the level of your income and any assets that you might own. So it is more or less a Funding Policy that is offered by the HSE, on behalf of the Irish Government.

With an overall 19% of Ireland’s population being 65+, with the highest populated cities like Cork, Dublin, Fingal, Kildare have a senior population ranging from 9% to 36% of senior citizens. With around 400 Private and Voluntary Nursing Homes across the country, there is high demand with over 98% occupancy. Availability is a huge concern. So be prepared to run for it.

Consult An Independent Advisory As Your Nursing Homes Support Scheme Guide

Online research has become widespread, and you think that calling the facility and discussing the cost and amenities would be enough. But you can never be sure of the Quality of Care, until and unless you pay a visit to the facility and inspect the place on your own terms.

Furthermore, be more realistic and practical in terms of choosing a facility. It is common sense that many people tend to select the facilities based on the decor elements and how nice the place looks. But while that does make a difference, never take hygiene, healthcare and Record of Care at face value. Research the background of the Nursing Home, and evaluate their grievance cells if they got one, or simply go by the traditional “word-of-the-mouth” to assess how good the caregivers are to their residents. You can also talk to residents if it is allowed, to assess the quality of care.

Explore the lifestyle activities that are available in the facility, from walks in the gardens, to pet therapy, classic movie screening and so on. The behaviour of the staff is also crucial to maintain a holistic stay. How they interact with you, and well-groomed they are, these things do make an impact.