The amount you pay for nursing home care is
determined by your cash and non-cash assets. In the general principle,
low-income individuals pay less, but if you have a greater amount of assets,
you pay more. Here is more you need to know about managing your finances right.
Understanding Assets Are Nursing Home Support Scheme - Fair Deal Scheme
Your assets are divided into two categories:
cash and non-cash assets. This includes savings, property, home, farm, business
shares etc. Also, assets that you have transferred to a successor are included
under the financial assessment. Below is a detailed list
●
Cash Assets
Cash assets include traditional savings, bank
deposits or post offices or credit unions. Income through rented spaces.
Shares, stocks, bonds and other financial securities and instruments such as
retirement funds.
Your cash assets after €36,000 for single
individuals. The amount is reduced by 50% for individuals that have a spouse,
either husband or wife who has equal rights to the asset, in that case, the
first €72,000 is exempted from the financial assessment.
●
Non-Cash Assets
These are assets that neither you nor your
spouse can simply convert into cash. Non-cash assets counted under the Fair Deal Scheme include property - both domestic and
overseas ones, a house, farm and business.
This evaluation does not apply to personal
items such as furniture, electronics, appliances, or automobiles. However,
mobile homes may be counted as an asset.
●
Transferred Assets
The financial evaluation solely considers the
applicant's assets and has no bearing on the assets or savings of other family
members. The transfer of property, on the other hand, is a fuzzy area, as it
involves any assets you've transferred within 5 years of applying for the
Scheme.
Note: It is widely recommended to consult with a reliable Nursing Home Support Scheme Guide to simplify and settle succession oriented halts in the application process. Always consult the guide before you submit your first application.
Applicants are obliged to inform the HSE if they have handed any land, property, or money to another individual within 5 years. And the information must be conveyed along with the first application. Failing to do so in the first attempt can get the authorities suspicious and might even lead to rejection.
What are Deductions Under the Fair Deal Scheme
Deductions are exemptions of your liabilities,
taxes and medical expenses that you get with the Nursing Home Support, which
include the following:
●
Income Tax
●
Other taxes - PRSI, PAYE and
Universal Social Charge, Property Taxes
●
Medical Expenses - doctor
consultations, prescriptions, diagnosis, medication and life-saving therapies
●
Maintenance of a child, grandchild
or any other person who is incapable of mending for themselves and is
completely dependent on the applicant
●
Loans, EMIs and other financial
obligations
These assessments are subject to fluctuation
based on the current condition of the applicant. If your financial situation
changes it is likely to affect your Nursing Home Support Scheme Cost of Care. The applicant should inform the HSE or the
Nursing Home about the changes in their financial posture.
The Three-Year Cap
As part of the Fair Deal financial evaluation,
applicants have to contribute an annual fee equivalent to 7.5% of the value of
all non-cash assets as mentioned above. But this contribution is capped at only
3-years for all the major assets including the
●
A House
●
The profits of your home's sale
●
A Farmland
●
A Business
Previously, only the principal homes were
eligible for the 3-year cap but from February 2022, the facility is extended to
farming lands and businesses as well.
Appointing a Nursing Home Support Scheme Guide For Applicants with Reduced
Capacity
There are several instances where the applicant is unable to keep up with changes in their financial condition. This is a common occurrence among dementia patients. A Care Representative is designated in this circumstance, who must be the holder of a valid Enduring Power of Attorney. A close family member, as well as a legally designated counsel or guide, can serve as a care representative. As a Ward of Court, the judge in a Circuit Court must make the appointment.
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