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.
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