When a person residing in a nursing home under the Nursing Home Support Scheme owns a residence, it constitutes part of the care needs contribution. The Nursing Home Loan Scheme was introduced to defer this payment till after the lifetime of the resident, and then the repayment of the loan is collected through the distribution of the estate of the deceased person.
There used to be certain “financially unattractive” aspects of this system, which imposed burdens on nursing home residents for selling their house and keeping the money from the sale proceeds because the net proceeds would then be charged under cash assets, and 80% of the amount would be gone to the HSE.
But things have changed since the 3-year cap and many other upgrades have been amended, which alleviates most of the burden compared to the long-term contribution that residents previously had to shoulder.
Now, whether you want to sell a residence that belongs to you, your parents, or a loved one who is in a nursing facility, this article offers some excellent news for you.
Availing of The Nursing Home Loan Scheme
If the individual in need of nursing home care has assets, such as land, a farm, or a house, then using the Fair Deal Scheme Ireland would require the applicant to pay 7.5% of the total value of the property as their contribution towards the cost of care, while 80% of their income and "cash assets" have to be contributed.
Although there is no way to delay payments for cash assets, the Fair Deal Scheme's Nursing Home Loan Scheme gives residents of nursing homes the option to wait to pay for their care until after their passing. It may be sought at any time as a nursing home patient or while making the first application. After death, the nursing home loan must be repaid. You have until your death to decide whether to pay this back.
How The 3-Year Cap Applies To the Sale of Family Homes
People under the Fair Deal Scheme can now be able to sell their homes once their application is approved and they are in care. , according to the newly released guidelines. The net proceeds will be assessed as a cash asset for the first three years, but only while the client is a resident of the nursing home. The net proceeds will no longer be taxable after this period.
The same system applies to Nursing Home Loan Scheme wherein, applicants would only have to pay a total of 22.5% of the value of the property in a span of 3 years. The loan amount can be deferred as it used to be. The new amendments to the scheme and the loan scheme will relieve many families of the burden of worrying about leaving their houses vacant, and it should ultimately speed up estate administration after the death of the applicant.
Things To Consider When Selling Your Home While Availing the Fair Deal Funding
There are specific rules for applicants who want to sell their homes, and even if you're selling beyond the 3-year period, you need to notify the HSE, which serves as the local nursing home assistance scheme office.
Failure to notify the HSE may result in unanticipated issues in the transaction.
In the event of misinformed behaviour, HSE may cancel the loan tenure and require you to repay the loan within 10 days of the sale.
When the situation is handled by solicitors or family members, the debt must be reimbursed within a year of the deceased person's death.
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