The Fair Deal Update: 3-Year Cap for Farmers Apply Before April 2022

 

Farmers are now eligible to apply freshly for the 3-year cap as per the Nursing Homes Support Scheme (Amendment) Act, 2021, by competing for the  ‘section 7’. Existing farming families paying the cost of care for the asset can apply too.

 

Because of the Covid-19 epidemic, a long-awaited 'fair deal' programme for homecare has been postponed until 2022. The law, which was first suggested in 2018, has yet to be developed for ultimate implementation. According to Mary Butler, Minister of State for Older Individuals, introducing a system to allow people to stay at home is now a priority for her, and she has pledged that it would be implemented by 2022.

 

The Nursing Homes Support Scheme (Amendment) Act, 2021

Came into effect this month after being signed into law back in July 2021 to reduce the amount that families will have to contribute to nursing home care. The new amendment of the Nursing Homes Support Scheme, went into effect this month after being passed into law in July to cut the amount of money that families would have to pay for nursing home care.

 

The Fair Deal for Farmers and the Future Generation

When calculating nursing home expenditures, the provisions of the nursing home assistance programme have been altered to provide more protection to farms or commercial assets that will remain in the family. The new guidelines of the scheme entail that after the initial 3years, the worth of the family-owned farms and businesses will no longer be included in the cost of care of the person who owns the farm or business.

 

This means family succession is possible and easier. Successors won’t lose their assets to the Fair Deal Nursing Home scheme. But there is a condition to do so. It is that the successors or a family member would have to stay back and work on the farm. If the farm is sold or given on lease to a third party, it would shift to the cash assets towards the cost of care.

 

It is critical to note that persons who are currently enrolled in the Fair Deal Scheme can still apply for the three-year limit if they meet the qualifying circumstances. So farmers can apply by filling out section 7' of the revised application form and sending it to their local Nursing Home Support Scheme office by April 20, 2022.

 

The Ministry Advises You To Act Fast

 

While the process is mostly straightforward, the cap cannot kick in until the application and supporting documentation including sworn affidavits are submitted to the Nursing Home Support Scheme offices. So, the longer you wait to submit the application, the more you will be charged a 0.14% fee on the capital worth of the family company or farm. This is time to act fast!

Fair Deal Scheme in Ireland: Reforms and their Impact on Applicants

 

The Fair Deal Scheme has always been ‘fair’ with all its applicants. However, like every scheme requires timely updates to meet the evolving expectations, this has been no different. Owing to the requests of business owners and farmers, on 20th October 2021, HSE announced amendments to the legislation. Let’s check out how you can benefit more from it in the upcoming days.

Changes in Fair Deal Scheme in Ireland

Before going into the amendments, let’s recapitulate the aim of the scheme. As stated, several times before, the objective is to elicit an affordable contribution to the cost of care as per one’s means. So, if you own more assets and income, you must contribute more but less if you have insufficient means. Don’t worry about the balance as it’s the State’s responsibility!

Now, what two changes do you think the scheme has implemented? Take a look below: -

ü  An extension of the 3-year cap to business assets and family farms

ü  Three years cap on the net proceeds from the sale of a family home

Who is Going to Benefit from the Scheme?

You shall benefit from the Nursing Home Loan Scheme if you belong to any of the following groups: -

Ø  A beneficiary of the scheme, who is willing to sell off family home

Ø  A beneficiary, who has already sold off family home

Ø  Someone running a farm business and availing nursing home care at the same time

The rest of the details are constant. For instance, the facilities are reserved for all beneficiaries of the scheme, seeking care from public, private and voluntary nursing homes. You shall contribute the same 80% of your income and 7.5% of your asset value every year. The figures are the maximum you may have to pay.

A Little Insight Into the 3-Year Cap

While calculating the Nursing Home Support Scheme cost of care, certain assets shall count towards it for only 3-years. This is the cap HSE is stressing on. So, if you are a farmer or a business owner, you will now enjoy a 3-year cap on your family farm or business. However, this facility requires you to meet certain conditions. One of them is to appoint a family successor, who promises to run the business for six consecutive years.

The 3-year cap is also applicable to the net proceeds from the sale of family homes. It’s a sort of encouragement to owners under the care of Fair Deal, who no longer wishes to keep their homes vacant. Worried if it applies to beneficiaries who are enjoying nursing home care before 20^th October 2021? Fret not, you just need to apply for the same within 20^th April 2022.

Postscript:

Learn more about the changes from Fair Deal Advice in Ireland. Run by advisors, the team takes away stress and complications from the process to help complete applications on time. Go on and book consultations with them!

Fair Deal Scheme in Ireland: Good News for Farming & Business Families!

 

The Nursing Home Support Scheme (Amendment) Bill, which was long pending, came into effect from October 2021. Along with some major changes, it has brought good news for farm businesses and their families. Dying to know all about them? This post on Fair Deal Scheme in Ireland has everything listed for your convenience. Let’s check them out one-by-one!

Amendments to the Fair Deal Scheme

People owning business and farm assets are now exempt from the yearly 7.5% charge after completing the 3 years. The amendment aims to make their businesses viable for the long term and to benefit the next generation. Find more about the same in detail from the upcoming points.

Ø  Contributing to the Nursing Home Support Scheme cost of care and availing of benefits have no constraints on the viability of the farm businesses and other trades. Just make sure you qualify for the scheme.

Ø  On contributing a certain percentage of your income and assets to avail of nursing home care, you shall be eligible for the benefits as long as you need them. Of course, the State shall also pay its part to support you financially.

Ø  Every applicant must contribute 80% of their income and 7.5% of their asset value (inclusive of savings and property investments) towards the cost of care weekly.

Ø  Previously, the Fair Deal Scheme had no capping on how long will farmers and businesses have to contribute 7.5% of their asset value. Thankfully, there is one now, much like family homes.

Ø  This denotes the exemption of the farming and business assets from the three-year cap that once applied only to family homes.

Ø  However, the contribution from income (both cash and investment) shall continue indefinitely until the applicant no longer requires nursing home care. However, it’s a relief that at least there is a cap on business and farming asset value!

Ø  You can now sell off your Principle Private Residence (PPR) on completing 3-years of your involvement with the Fair Deal Scheme in Ireland. The HSE will not charge anything on the proceeds.

Ø  The benefits shall proffer only to “qualifying families”, who has been indulging in day-to-day farm operations in the last three years out of five. Another condition to abide by is the nomination of a farm successor, who would look after the farm business in future for at least six years from the moment the person is entrusted with the responsibility.

Postscript:

Looking for advice on Nursing Home Support Scheme? Stop over at Fair Deal Advice in Ireland! The advisory service provider can relieve your stress with insights and make your experience worthwhile.