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.
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