How Has Fair Deal Advice Proven Itself to be a Boon for Couples?

 

Fair Deal Nursing Home Scheme is indeed fair. All applicants in dire need of nursing home care, including those worried about the sustainability of their farm businesses, can avail its financial benefits. There is no distinction on age grounds. One such group, enjoying the payment support offered by the Health Service Executive (HSE) are couples. If you are a part of a couple applying for the scheme through Fair Deal Advice or any other advisory body, spare a few minutes to check out the scheme benefits in store for you.

Fair Deal Solutions for Irish Couples

While applying for the scheme, every applicant has to follow four steps – filling the form, assessment of care needs and financial condition, and the Nursing Home Loan Scheme. Although the final one is optional, the leniency towards payment in all phases is worthy of appreciation. Let’s tell you how in the upcoming sections. Keep scrolling to come across them.

One of the most amazing things about the Fair Deal Scheme is that it considers same-sex unmarried couples as ‘couples’, making the system more inclusive. The only condition is for them to stay together for a minimum of three years to avail the scheme benefits.

When contributing towards the nursing homes charges, the HSE demands only 40% of their income and 3.75% of their aggregate asset value per year. Both are half of what an individual who is not part of a couple pays to enjoy the benefits.

The three-year cap benefitting farmers and business owners also prove advantageous for couples. The 3.75% contribution that we discussed just now is payable for a maximum of 3 years. This indicates that if you are a part of a couple, you will contribute 11.25% of your property value towards nursing home care expenses.

The HSE has even tailored the Nursing Home Loan Scheme to support couples. While applying for it, both have to sign on the application form. HSE allows partners suffering from a reduced capacity to take the assistance of a care representative or Ward of Court or a holder of a power of attorney to act on their behalf. One of the partners can also apply to have the repayment deferred for their lifetime.

Lastly, couples enjoy financial safeguards under the Fair Deal Scheme. HSE leaves the spouse or partner living at home with 50% of their overall income or a chunk of the State Pension, whichever is sufficient for their survival.

Explore More Such Benefits of the Scheme at Fair Deal Advice!

Fair Deal Scheme has practically eliminated the financial hurdles to meet the nursing home expenses for all Irish citizens. Of them, couples are one of the beneficiaries. However, understanding the terms and conditions attached to the scheme can be challenging for a few. Fortunately, Fair Deal Advice, an advisory service provider, simplifies the process by ensuring timely grant of nursing home support to applicants, including couples.

How Tax Relief Work Under the Fair Deal Scheme in Ireland - 2022 Update

 

In Ireland, the average weekly cost of a private nursing home was roughly €896 in 2015, or slightly under €50,000 per year. By 2022, that ratio has risen to almost €1,060 per week! Furthermore, additional costs for care, such as nursing home service fees and unique demands for care equipment or therapy, increase the cost.

It is good to know that the care costs contribution under the Fair Deal Scheme is tax-deductible at your marginal tax rate in Ireland. These expenses do not have to be paid by the applicant. A family member or a loved one can pay the care cost on behalf of the applicant, and obtain a tax reduction. There is anti-avoidance providence in place too.

Taxpayers’ Guide for The Nursing Home Support Scheme Cost of Care

If you have a significantly higher pension income, you may be responsible for the majority of the cost under the Fair Deal Scheme. As a result, paying for your nursing home care yourself may be preferable, especially if you are a higher-rate taxpayer who can claim 41% tax relief on the costs of private nursing home care.

There's also the five-year 'look-back' clause, which means that any assets you previously possessed that were transferred to someone within five years of applying for a Fair Deal will still be considered in your financial means assessment.

A reputed Nursing Homes Support Scheme guide recommends that to keep the government out of your assets, applicants who are asset rich but cash-poor must plan their wealth at least five years ahead of time before they plan to enter a nursing home.

 

The Nursing Home Loan Scheme

Under the Fair Deal Loan Scheme or the Ancillary State Support Scheme, there are available claim reliefs on the cost of health expenses. These can be medical expenses for yourself, a family member, or anyone else, as long as you paid for them.

 

If you are authorised for the Ancillary Support Scheme, you can delay the payment of the Nurbased on your assets (land or property). This means that the HSE will pay the money to the nursing home on your behalf and collect it following your death or the sale of all or a portion of your asset.

 

How Health Expenses Impact The Nursing Home Loan Support

 

The Revenue sets a clear guideline as to how the Health Expenses impact the loan. Health expenses that qualify for relief from the repayment  You may wish to defer your healthcare costs. This benefit applies to individuals that have any Ireland-registered property assets, home and farm or land. The HSE provides you with a loan, using your assets as security.

The HSE pays the nursing home immediately for the loan. However, you cannot claim tax relief on the amount paid by the HSE to the nursing home when you sell the asset used as security

upon your death. You or your estate can claim tax reduction on the amount repaid when the loan is repaid. During the tax year, you can claim nursing home charges in real-time.

Additional Relief Included In The Nursing Home Support Scheme Cost of Care

 

You may be eligible for reimbursement for the cost of additional nursing care. You or a family member may be suffering from a serious disease and require home nursing care. On the recommendation of a medical practitioner, you hire a skilled nurse to offer nursing care at your home. Alternatively, you could be in a nursing home and require more nursing care than is usual. Get in touch with a Nursing Homes Support Scheme Guide to get complete coverage of legal and official steps.

To be eligible for this relief, you must provide a medical certificate as well as documents stating the following:

➔    A qualified nurse provides continuous nursing care at the patient's home.

➔    In a nursing home, additional nursing care is available.

➔    The patient's correct name and address

➔    The nature of the patient's illness is described in detail.

➔    The total amount of time that home nursing is being claimed

➔    Full name and address of the nurse, as well as verification of their nursing license.

➔    A list of all payments made to the nurse, as well as all payment receipts 

 

To claim the tax relief and health-related costs can be claimed through my Account or the Revenue Online Service (ROS).

Remember, that only expenses for which you have receipts are eligible for reimbursement. You can get a refund on your medical expenses over the previous four years. If you have private health insurance, you may be able to claim tax relief on the part of your medical expenses that your insurer does not cover.

Things You Didn't Know About Ireland's Fair Deal Scheme

 

Is it necessary for me to sell my home in order to pay my share of the expense of care?

This is by far the most frequently requested question by candidates for the Irish Nursing Home Support Scheme. However, this is not the only confusion that people have as a result of the establishment of bed, boarding, and beyond - here are some important facts that every application should be aware of.

 

It Is State Funding For Limited Income and Assets - You Got To Have Something

Though the scheme is available for anyone who needs long term nursing home care. So it turns out that while you pay less for having limited income and assets, you’d end up paying a lot more if you have a wealthy estate - an amount that is almost as much as private nursing home care. 

So what is the solution? How much are you exactly entitled to pay? And how is the scheme going to work in your case? Read on to have a better understanding.

 

Paying A Portion Of Your Estate - How Does That Work?

Let’s understand what an estate really is. 

It is the land that you have under your name, including houses, farmland and any business. But the cost of care includes your “assets” which means if you have shares, stocks etc. 

The core principle of the scheme is that no one should pay any more than their cost of care - which is determined by their care needs. 

The total value of a property or asset the applicant is entitled to pay is 22.5%, which is dispersed into 3 annual payments of 7.5%. However, for stocks, farmland and other assets, the 3-year cap has yet not applied. Meanwhile, 80% of the applicant’s income or cash assets are collected. While the cash asset is transferable, one cannot simply transfer their home or other non-cash assets.

 

Paying Out The Value Of Property Assets

While cash assets can be shifted on a weekly or monthly basis, how does one pay off a property? The applicant is forced to sell or refinance their home as a result of this. 

The Nursing Home Loan or Ancillary State Support is what discourages the applicant from selling or mortgaging their home. Meanwhile, the cash asset contribution would be free from taxes, critical medical expenses, caring for a child, or caring for other unemployed family members. Furthermore, the first €36,000 in savings would be deductible.

 

Should You See A Care Representative or a Fair Deal Advisor?

Care Representatives, who are frequently nominated by a family member or the HSE, represent an application and perform specific tasks on their behalf. They help applicants who seek assistance but are unable to complete the entire application process on their own.

An advisor may also serve as a Court-appointed Care Representative, but they have more to offer the applicant. Advisors often work on their own and are responsible for leading searchers through the process holistically, avoiding mistakes, and asking the correct questions at the right time. They can also act as a power of attorney or help you obtain one if necessary.