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.