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!