Do you own a house that you wish to hand over
to your family members or children? If you are a Fair Deal Scheme applicant
this could get complex and to some extent impossible. But thanks to the new
reforms of the Nursing Homes Support Scheme (Amendment) Bill 2021, there has
been a new ray of hope for homeowners and farmland owners to secure their homes
and farmland for their families while living under long-term nursing home care.
According to the terms of the Nursing Home Support Scheme, also known as the Fair Deal Scheme in Ireland,
applicants could not simply pass over their home to their children in order to
avoid having to pay an asset contribution. Your property handovers will be
reviewed by the Health and Security Executive (HSE), and if you have done so in
the five years leading up to your Fair Deal application, you may not be
eligible for the payment.
The Nursing Homes Support Scheme (Amendment)
Bill 2021 has passed the Oireachtas and is now awaiting signing by the
president. And a lot of change and the good news is on the way that will make
things a lot easier in terms of the Asset Contribution.
The Nursing Homes Support Scheme
(Amendment) Bill 2021
This reformation demonstrates the scheme's
position and commitment to protecting family farms and businesses from the
costs of nursing home care.
Under new regulations, family-owned farms and
businesses will no longer be included when calculating nursing-home care costs,
when they agree to labour the farm or business for a minimum of six years.
The Extension of the 3-Year Cap
on the Sale of Principal Residence
The Irish Government has stuck to the scheme's
core principle of fairness by treating the residence and the revenues from its
sale in the same way. The legislation not only establishes a 3-year asset
contribution cap but also extends the cap on contributions to the cost of care,
which is computed by comparing the value of a large residence to the proceeds
from its sale.
The HSE has just announced new guidelines that
allow residents to sell their homes once their application has been approved
and they have been placed in care. The net proceeds will be treated as a cash
asset until the client has been a resident of the nursing home for three years,
at which point they will be charged as a liability.
The HSE has just announced new guidelines that
allow residents to sell their homes once their application has been approved
and they have been placed in care. The net proceeds will be charged as a cash
asset until the client has been a resident of the nursing home for three years,
after which they will not be chargeable.
This adjustment is meant to remove any barriers for those who want to sell their vacant property while on Fair Deal, which is an important consideration in the context of the housing crisis, according to the department.
Freedom From The Worry of Empty
Houses
This modification would relieve many families
of the burden of worrying about vacant residences and how to deal with them, as
well as speed up the administration of estates once the resident has passed
away. It should also help to free up much-needed housing that is now vacant.
While this is welcome news for many, I strongly advise seeking legal advice before selling a home, as the property may not be able to be sold due to the owners' lack of capacity, there may be implications for the person's continued participation/ eligibility for the fair deal, and it will not benefit all residents, particularly those in Dublin with higher-value homes.
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