Fair Deal Nursing Home Support Scheme - Make Guided and Informed Decisions

 

The question of whether or not to use the Fair Deal Scheme is a grey area for many applicants. The goal of this scheme is to empower seniors, both individuals and couples, who are not financially capable to pay for residential care on their own. The constant effort of the Irish government is to benefit the ideal candidate. This article explains how the scheme works for ordinary people and who stands to benefit the most from it.

 

Nursing Home Support Scheme: Ideal For Candidates Who Are Cash Poor and Asset Rich

 

Thanks to the newly passed Nursing HomeSupport Scheme (Amendment) Bill 2021, has vastly changed the way farmers and business owners would now pay for their long term residential or nursing home care.

 

While the basic policy stays true to the 2009 Act, where the Irish State Government provides individuals with necessary financial assistance in exchange for a partial contribution toward their long-term care costs. The contribution is based on 80% of income/savings and 7.5 percent of non-cash assets such as a home, land, or farmland. Certain taxes, such as income tax and other government taxes, are exempt.

 

Individuals are exempt from the contribution cost for the first €36,000 in savings or cost of assets. This increases to €72,000 in the case of couples with equal share of the assets, or if the applicant is caring for a family member, that may be a spouse, child, grandchild, a sibling or any other family member.

 

How The Fair Deal Scheme Works For Principal Residence and Farmlands After July 2021

 

For applications after July 2021, the three-year cap would apply to farmlands and businesses as it does to the principal residence. So that the value of family-owned farms and businesses will no longer be taken into account when calculating the cost of a person's nursing home care after three years under this change to the Scheme. However, this accounts to the condition that a family member would have to commit to working the farm or business, if the farm is sold, then the sale money might impact the revision of the Nursing Home Support Scheme Cost of Care.

Nursing Home Loan Scheme

 

With the Nursing Home Loan or Ancillary Support Scheme, the cost of the asset, such as the family home or farm, can be deferred for three years, or until the total 22.5 per cent (7.5 x 3) is met; this is known as the "three-year-cap." This does not mean you will not have to pay, but it does mean that the HSE will be able to seize your property after your death. If you have a family member living with you, or if you own farmland,

 

Back to Basics: Who Is Most Appropriate For The Fair Deal Scheme?

For different people, the scheme works differently. Basically, it can be a losing proposition for those with substantial assets and savings. But if you are radically cash poor and have a home or assets that you don’t mean to transfer to a family member, this scheme can be ideal for you to get long term care without many worries. Similarly, it also works the same way around that if you are already living under Nursing Home Care or paying rent, by availing the grant, you can bring quality nursing home care under your affordability.

The best step is to plan ahead of time. This is particularly useful for those who are unable to pay for residential care on their own and do not have an asset. The point of this scheme is that the more money you have, the more money you lose.

Fair Deal Scheme Ireland: What If You Can Rent Your Empty Home And Keep The Money

After the recent development of introducing the 3-year cap financial contributions for farming and business families, it is time for a new change that settles the housing problems associated with the Fair Deal Scheme Ireland. 

President Michael D Higgins recently signed legislation imposing a 3-year cap on annual contributions to Fair Deal from the sale of a family home. Housing Minister Darragh O'Brien is now hoping that his plan to exclude rental income from the scheme can be introduced as an amendment to existing legislation when the Dáil reconvenes after the summer break.

You May Rent Out Family Homes While Living In A Nursing Home Under Fair Deal 

According to Mr O'Brien, more than 9,000 homes are left vacant as a result of conditions imposed by the Nursing Home Support/Fair Deal policies – which funds nursing home care – but disincentivize applicants from selling or renting their homes after entering the scheme and shifting to the nursing home. 

The Government Housing For All plan is aimed to change that system, by excluding the rental income from the scheme and allow old people to live in nursing homes to hold on to the income by renting out their vacant houses. 

Nursing Home Support Scheme Cost of Care for Principal Residence 

As a fair deal nursing home support applicant, if you own a house, then you would know that the cost of care includes 7.5% of the house’s current value to be paid annually. If the home is a principal residence and you have family members living there, then the contribution is capped at 3-years. Moreover, if you have a spouse or other close relative that has an equal share of the house, then you would only pay half the percentage, which is 3.75% of the portion of your share.

Earlier, Minister for Mental Health and Older People, Mary Butler TD, battled to get the Nursing  Homes Support Scheme (Amendment) Bill 2021 passed through the stages of the Seanad and the Dáil, and finally be in effect. The new reforms are more focused to optimise securities families and businesses with their loved ones in the Nursing Home. 

This is at a proposal stage, and no decision has been taken yet. And calculating how the previous amendment for farming families took years to come to effect, this too may take time to confirm. But it is nonetheless a fresh start for the scheme to get updated; it is nearing to complete a decade. Watch out for more news on the same.