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
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