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!