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.