Why You Need To Consider Having A Fair Deal Advisor On Your Side For 2022

 

Independent Ireland recently published an article about how the newest amendments to the 'Fair Deal' Nursing Home Support Scheme could benefit family-owned businesses and farms greatly.

 

The scheme had many setbacks earlier, but thanks to the efforts of President Michael D. Higgins to bring forth the Nursing Homes Support Scheme (Amendment) Bill 2021, the bill is now passed. So now, if you are looking to make an application, then you need to educate yourself about what the new policies entail and how it impacts you and your loved ones.

 

This is high time that you consult with a Fair Deal Advisor to take a conscious step that doesn’t count you out of any of the benefits.

How The Nursing Home Support Scheme Cost of Care Would Work for Business and Farming Families

 

First and foremost, the 3-year Cap now applies to farmlands and businesses, which was only available for family homes previously.

 

The capital worth of a person's primary private residence is only factored into the scheme's financial assessment for the first three years of their stay.

 

All this while the 3-year cap applied to farms or businesses only if the farmer or business owner suffers a sudden illness or disability and as a result requires nursing home care. But now with the new Bill passed, new safeguards have been added to the Scheme owing to the viability and sustainability of family farms and businesses and the scope of family succession.

 

Qualifications and Complications Associated With Nursing Home Support Scheme Cost of Care

 

The new bill doesn’t change the basic layout of cost of care contributions from applicants. That is 80% assessable income annually, plus a maximum of 7.5% of the value of their assets paid annually - which is now capped at three years. The first €36,000 of savings is not included in the financial assessment.

 

For couples, the contribution is reduced to half and the savings exemption is doubled which means if you are a member of a couple, and share your assets and income with your spouse, you have to pay only 40% monthly/weekly for the cash assets and 3,5% annually for the house and other productive assets. At this stage you can seek the Nursing Home Loan scheme, to turn your cost of care into a full-fledged secured loan that you would pay with your house, after your lifetime.

 

It is safe to say that if a person's assessed weekly contribution exceeds the nursing home scheme cost of care, they will not be eligible for the funding.

How A Fair Deal Advisor Can Help You

 

If you are planning to sell your home or farm, then it impacts your funding even after the 3-year Cap. The sale money is most likely to be counted as a cash asset and call for a reassessment of your financial condition. Probably you’d have to pay a percentage of the sale money to the HSE.

 Because some properties may not be able to be sold owing to the owners' lack of ability, it is necessary to sell the residence. The person’s continued participation and eligibility for the fair deal programme may be jeopardised. It will not benefit all inhabitants, especially those in Dublin who own more expensive homes.

 If you are thinking of applying for the  Nursing Home Loan Scheme, you would need a person to submit a written agreement to have a charging order recorded against your asset when applying for this loan.

 All these concerns can create a hassle for you to make a holistic choice. That is why it is strongly advised to seek advice before deciding anything.