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.

 

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.

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.

 

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.