How Fair Deal Scheme Contributions Work for Families

 

Succession leaves a big gap when it comes to planning the contribution as cost of care under the Fair Deal Scheme Ireland. 

Let's start with the principal residence. Applicants are entitled to pay 7.5% of the value of the property every year. The payment has a 3-year Cap. For instance, suppose the value of your house is €380,000 you have to pay €28,500annually for 3years. If you are co-owning the house with a spouse or other family member, then the amount reduces to 3.5% annually and 11.5% for 3years. 

You have to pay 80% of your income/pension/savings combined that leaves you with 20% to spend on your needs. So you can either save enough money from that 20% to pay this amount, or go for the Nursing Home Support Loan Scheme. In most cases, applicants require the loan. 

 

Paying For Nursing Home Care And Keeping The House

The amount you have to pay to the Nursing Home on a monthly basis is assessed at the outset. This reflects the income and assets earned by and owned by the person getting the Fair Deal. Unless the Nursing Home Support Loan scheme is availed, there is nothing to pay except the bill each month. After the first 3 years, the applicant would have to pay 80% of the cash asset each month. 

The total of 22.5% payment against the value of your property, once addressed, families get to keep the principal residence, even after the lifetime of their loved one. Now if the homeowner has availed the Nursing Home Loan, in that case it might be very difficult to keep the house. 

The Fair Deal Scheme Ireland: Income Assets and Families

It is only the applicant’s assets and income that is counted. Not of the families. If you have previously owned the property and handed it over to your children beforehand, then you may be exempt from the payments against the asset. 

But you have to disclose this to the HSE and let them decide. Even if you do so, you have to pass at least 5years to apply for the Fair Deal Deal Scheme. And it only applies to first time applicants. If you have already been rejected once, you may apply again after 6month. But if you reapply after a property transfer, you will never get approval. 

Which is why, it is always advised to consult a Nursing Home Support Scheme Guide before your first application. Because, despite the fact that the rules appear to be straightforward, there are minor nuances in the policy that can have a significant impact on your eligibility for funding.

 

Best Benefits For The Cash Rich and Asset Poor 

The Fair Deal scheme is intended to target financially disadvantaged individuals in order to provide quality nursing home care. All of this is theoretical. Those who do not have children or family members to pass on the primary residence have the greatest advantage. Even better, if you live in a rented apartment, you are completely exempt from paying the asset payment!

Individuals who are single and in need of proper care in their old age are given top priority under this scheme. Ideally, their home and other assets are streamlined so that they only have what they need to live comfortably in nursing home care. 20% of their income and €36,000 in savings

Fair Deal Advice - How Can We Help?

 

Let’s chalk out a situation where someone close, especially a family member, has reached a stage where admitting them to a nursing home is the wisest thing to do. The first step is to conduct a quick R&D using the search engine to find out about the available nursing homes near you. And, the second most immediate step is to apply for a Fair Deal Scheme to sort out the financial matters. It’s evident from the scenario that Nursing Home Support Scheme (NHSS) is the most important thing today. It’s as vital as having health insurance planned to share the burden of hospitalisation bills with the Irish Government.

There is no wonder why private and confidential advisory service providers as Fair Deal Advice exist. As an organisation, we work with a team of advisors and accountants to help potential applicants understand the process and encourage them to enrol. However, this was just a part of our services. Let’s check out what other solutions can you expect from us.

Services Offered to Every Applicant Seeking a Nursing Home Support Scheme Guide

1. Consultation

At the onset, potential applicants have several doubts about the rules, things to avoid, do’s and don’ts etc. Some are generic, whereas others are specific to your situation. All these questions need answering. Under the stewardship of Tom Murray, we pass on the relevant information to those applying for the NHSS. Post consultation, the ideas shall be clear to you. You can then decide whether to proceed or dump the plan. Most of the time, they go in favour of it.

2. Filling up of the application

Now, the service above covers almost everything. Enclosed below are the rest that is looked into: -

ü  Analysis of the individual’s situation from a financial and medical perspective to check if the person is eligible for NHSS

ü  Determine the optimal structure of the application to best suit the applicant’s financial situation

ü  Map out the contribution of the applicant and that of HSE

ü  Hand out a booklet enclosing all the necessary information about NHSS for reference purpose

ü  Fill up the application form on your behalf to take away the stress

ü  List down the impact of NHSS on your pension and income

Book an Appointment!

The NHSS is quite complicated with endless terms and conditions. It’s challenging for a new applicant to understand them without getting confused. That is when we step in and simplify life. In exchange for a nominal service fee, imagine setting yourself free from the turmoil - both physical and emotional. More than that, it’s the satisfaction of watching your loved one receiving the desired level of care at a nursing home. Get your appointment today if you are convinced of the services!

 

#Nursing Home Support Scheme Guide #Fair Deal Scheme #FairDeal

Fair Deal Scheme Case: Can an Applicant Pay for Bills and Gifts after Enrolment?

 

Despite the fairness of the Nursing Home Support Scheme, situations arise where one is compelled to question it. However, every time, the Fair Deal Scheme proves its relevance in the life of the elderly. A similar case has been discussed here. You may find yourself in a similar position in future. Therefore, it is better to check out every possible scenario and act accordingly to benefit from the scheme.

Situation:

Suppose you enrolled for the Nursing Home Loan Scheme. Now, the question is - how will you support the expenses that you earlier used to cover? For instance, you may have health insurance, house insurance, bills for activities and hairdos to pay. You may also have grandchildren. What if you feel like gifting them money for their satisfactory academic performance, birthdays, little achievements etc? Many of you may suggest bearing the expenses from her savings. But is that accessible, given her enrolment in the scheme?

Resolution:

Firstly, the case can be distressing for someone who has to see his relative moving into a nursing home to seek long-term care. Let’s think practically instead of emotionally. If any of your parents have sought the Fair Deal Scheme, it is a wise decision on their behalf. The Irish Government via HSE is willing to bear a part of the expense, but the problem crops up when 80% of your income and 7.5% of your assets goes into meeting the cost of care. One is often left with little to support lifestyle.

However, let’s get this clear. Certain things like tax bills, local property tax and outstanding loans are deducted from one’s income before the 80% assessment is run. Similarly, others like ancillary expenses for the applicant in the nursing home, including activities for hairdressing are not taken away. Since these are all necessary to remain physically active, mentally sound and for maintenance of self-image, paying from the 20% that one retains is quite reasonable.

Speaking of insurance for the family home, despite the contribution towards the cost of care, most of the applicants choose to retain the asset. The reason is pretty simple. If the only surviving owner sells off the property, the money thus received shall move into his savings account. As we all know, the same is subject to 7.5% towards Nursing Home Support Scheme cost of care. It hardly makes sense to contribute from that part of one’s income.

In a nutshell, a lot of expenses are covered by the 20% residential income. After all this, monetary gifts to grandchildren or anyone seems impractical. And even if some amount was made in the past 5 years, those shall count when HSE would assess the savings of an applicant. However, the decision to make such monetary gifts is still the applicant’s choice. It's definitely possible but may end up straining the balance left for covering emergency needs.

Wrapping up:

Revisit this blog section to know more about such cases happening in the lives of applicants and never feel yourself to be alone. There is always a resolution to every scheme problem. There is also a way to tackle similar instances. It’s approaching a Fair Deal advisor right from the beginning to avert such issues in the very first place. Now, it’s your call. Make it count!