Friday, October 7, 2022

Proceeds of the Sale of the House and the Nursing Home Support Scheme - A 2022 Update

 

From February 2022, changes have been made to the Nursing Home Support Scheme - Fair Deal, which has been publicised to extend the 3-year cap on the family farm, businesses and even proceeds of the sale of the house. This article explains the matter more closely, and how to qualify to get the exemption of house sale proceeds.

How The New Amendment Makes Things Easier for Families and Businesses

 

Suppose you or your loved one is living in a Nursing Home, under Fair Deal Scheme or the Fair Deal Loan scheme, and when the three years cap is applied, the homeowner may sell the house and keep the sale money in their bank account.

 

Now how to pay for care? Are you supposed to pay a percentage of the sale proceeds towards cash assets?

 

The new amendment to the Nursing Homes Support Scheme was passed in February 2022, where a nursing home resident’s family home is sold, the proceeds are not included in the financial assessment for the Scheme once three years have passed.

 

The HSE will now permit a resident to sell their property once their application is approved and they are in care, according to the recently released rules. Until the client has resided in the nursing home for three years, the net proceeds will be charged as a monetary asset. After that time, the net proceeds will no longer be chargeable.

 

How You Pay For Care After 3years in Under Fair Deal Scheme

 

Previously, the applicant was required to contribute cash assets from the sale proceeds of a property owned by someone living under the Fair Deal Scheme.

 

This was a significant deterrent to residents selling their homes throughout their lifetime and has led to many vacant properties held by nursing home residents across the nation.

 

After three years in a nursing home, a property can now be sold, and no contribution from the revenues will be required going forward, according to the updated legislation that was initially passed into law.

 

 

After three years of receiving care, your residence will no longer be included in your financial evaluation. You don't need to take any action. The net revenues of a house sale that takes place while you are receiving care will also count toward the 3-year cap.

 

Qualification Criteria for 3-Year Cap on Proceeds of House Sale

 

People who sold their home while receiving nursing home care and are receiving care under Fair Deal before October 20, 2021, may apply for the three-year cap on the net proceeds of their home sale. Applicants need to contact any local fair deal scheme Ireland office and notify the officials about the specifics of the sale and request a review of the qualification. Some of the qualifications requirements are as follows:

 

       The business or farm or house must be owned by the applicant

       An immediate family member or proposed family successor must commit to running the farm or business or have been living in the house

       A charge in favour of the HSE will be placed on the chargeable property

 

It is not as straightforward when it comes to managing family homes, assets and farms and businesses with the nursing home scheme. The best way to work it out is to consult a Fair Deal Scheme advisor, or even consult an attorney who specialises in handling Fair Deal cases in Ireland. Make a conscious decision and maximise the benefits.


No comments:

Post a Comment