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.