Friday, December 22, 2023

All About Nursing Homes And Residential Care Facilities And Their Importance

Old age is a tough time for many. Handling all the chores gets complicated, and medical assistance is necessary. Nursing homes and residential facilities are readily available to help the elderly lead a regular life like everyone else. However, at times finances can be a constraint, which is why a nursing home support scheme from the Irish government can come to help. However, before looking into any fair-deal scheme, you need to understand the difference between nursing home care and residential care facilities.



What Is Nursing Home Care All About?

Nursing homes provide the highest level of care to the elderly outside the hospital. They are also known as custodial care; the elderly get attention and care from carers 24x7. From getting help in and out of bed to assistance in feeding and dressing, the elderly also receive medical attention at all times. Since it's quite expensive to get such care and attention 24x7, 365 days a year, people are on the lookout for a nursing home loan scheme. The only savior out here is the fair deal scheme. With the help of the Fair Deal Scheme, you can get financial assistance to a certain extent to lead a regular, respectful life.

What Is Residential Care All About?

Residential care facilities are highly popular. Here, the elderly person gets the option of being taken care of by a family member. Any of your loved ones can take up the responsibility to provide you with much-needed care and attention. You get to live in a facility, and what more? You get help for your daily requirements like washing the laundry, dressing, and feeding too! Residential care isn't only about medical assistance but also regular needs, which is why getting in touch with professionals is essential to ensuring the elderly get the best facilities to lead a healthy and safe life. The only hurdle here is the cost factor. Sometimes, things go beyond the budget, and the elderly do not have the funds to pay for care and medical assistance. That's where the Fair Deal Scheme steps in and ensures you can lead a regular life respectfully.

Significance Of The Nursing Home Facility And Residential Care Units

Both nursing homes and residential care facilities ensure you get a proper line of unique health solutions for people suffering from mental and physical conditions or those who need assistance to lead a regular life. In a few cases, the elderly live in facilities where they might need medical assistance but not hospital-level support. Here, the patient needs assistance with their daily routine, like meals, medications, and other general healthcare services. These facilities and care units can help the elderly in numerous ways and are essential for providing quality assistance to the elderly who are suffering from specific ailments.

The Fair Deal Scheme Comes Into The Picture! 

Now that you are aware of the importance of nursing home facilities and residential care, you need advice to get the nursing home loan scheme. Fair deal advice might be common, but only a well-reputed professional can show you the right way and handle all the paperwork with perfection. 

Friday, December 15, 2023

Taxes for Senior Citizens in Ireland And How They Impact Retirement Planning

 

By the third decade of life, most Irish people start thinking about their retirement and financial planning. It is almost indispensable to leave the idea of long-term nursing home care, and relatively, the nursing home support scheme- Fair Deal, also comes into the picture. The good news is that tax can be much less of a burden in Ireland for people once they reach a certain age of 65. In Ireland, the general tax rules are applied to people over 65, with updated limits for tax relief. You start paying less tax on your income once you reach this age, whether it is general income, pensions, social welfare allowances, or rental income—everything counts. This blog jots down all the information about taxes in Ireland. 

Taxes for Pensioners in Ireland 
The minimum threshold limit for tax relief is an annual income of €18,000 for a single person and €36,000 for married couples or civil partners. For parents, additional exemption limits start at €575 each for the first two children. The Revenue identifies and classifies different types of taxable income beyond the threshold limit. Below is a list of them: 

    • Taxation on Pensions: It is broken down into many subcategories, such as occupational pensions, social welfare pensions, Pay-Related social insurance (PRSI), and foreign pensions earned by working abroad. 

    • Nursing Home Care and Medical Needs:  Revenue offers tax exemptions on medical care and nursing home expenses at the highest rate of income tax paid by a taxpayer. 

    • PAYE: Those who are solely subject to PAYE taxes, including those whose non-PAYE income is subject to taxation by being factored into the calculation of their tax credits, are exempt from filing an annual return. However, those who are not obliged to pay PAYE taxes must voluntarily undergo the self-assessment system to submit their annual tax returns by October 31, 2023.

Tax Relief For Nursing Home Residents in Ireland 

Tax relief is available at higher rates of income tax for taxpayers who have to bear nursing home expenses for themselves or a loved one. If you pay the higher rate of tax, any income exceeding the standard rate cut-off point is subject to a higher rate of 40%.

The tax relief for nursing home residents under the Fair Deal Scheme in Ireland changes based on the circumstances of the taxpayer. Anyone entering into nursing home care, whether they choose the FairDeal/Nursing Home Support Scheme or not, qualifies for tax relief. 

The Fair Deal Scheme cost of care, on the other hand, offers relief on contributions to meet your income tax obligations. It also extends to a spouse's or partner’s taxes when they have equal rights to their income and assets. 

Moreover, those who have opted for nursing home loan support in Ireland can get tax relief on their income, which accounts for contributions against cash assets. Individuals paying for the nursing home care of their parents are also included in the tax relief chain. 

How Taxes for Seniors Impact Retirement Plans in Ireland 

When you claim your pension, it is almost always possible to take some portion of the overall fund as a lump sum. A good chunk of this lump sum can also be claimed tax-free.

The maximum tax-free lump sum threshold is €200,000. Anything beyond that which you receive as a lump sum is referred to as an excess lump sum and is liable for tax.

If you are planning to shift to long-term nursing home care in later life or enter as a couple under the Fair Deal Scheme, then the smartest thing to do is consult a professional Fair Deal Advisor in Ireland and navigate the true potentials of the scheme based on your income and assets. 

Have a power of attorney in place to safeguard your decisions in the future. It is a document that grants authority to another person you trust to act on your behalf if you lose mental capacity. This arrangement gives the grantee access to make financial decisions, pay off nursing home fees from your assets, and complete your obligations. 

One way to claim tax relief is through an annual tax return. Alternatively, the resident, spouse, or children may request that tax relief be paid on a fortnightly or monthly basis, allowing for real-time tax relief.

Friday, December 1, 2023

The Nursing Home Support Scheme for Beginners

 

nursing home support scheme in Dublin

After over 14 years since the Nursing Home Support Scheme (NHSS) was incorporated, the statutory responsibilities and overall approach to administering the scheme have undergone a pool of changes. What started with the Nursing Home Support Scheme Act of 2009 to enhance access and affordability to nursing home care for “people with limited means" now has more defined characteristics based on the financial condition and assets of candidates. These characteristics include the following: 

    • The 3-year Cap 

    • The approach towards rental income 

    • Proceeds of the sale of a house 

    • Financial safeguards 

The scheme has now come a long way with a range of new amendments and improvements, as well as challenges. If you are newly exploring the possibilities and suitability of the scheme, then go ahead and read the rest of the article. 

Fair Deal Nursing Home Scheme: How It Works in 2023
Irish residents can avail of the service that involves residential care with 24-hour nursing support once they go through a comprehensive assessment of their health and financial status to ascertain their need to avail of the service and the extent of their financial contribution to that effect. The contribution is as follows:

    • 80% of your income and savings 

    • 40% of rental income earned by renting out the principal residence while under care

    • 22.5% of the value of your asset per year, paid in 7.5% amounts throughout 3years 

    • If you are part of a couple, you pay half the amount: 40% of your cash assets and only 11.25% of your non-cash assets like your home, farm, and business, paid in 3.75% annually for 3 years.

The balance of the expenses is borne by the state through its Health Service Executive (HSE) to the private, public, and voluntary nursing homes empanelled under the scheme. The scheme covers the expenses incurred for long-term nursing care, which include:

    • Food, Accommodation and laundry expenses

    • Applicable personal and nursing care

    • Support appliances and aids for daily living.

However, the expenses of daycare, respite care, and convalescence are not covered under the said scheme. Hence, individuals availing of the service should check with the concerned nursing home authorities for clarity on the possible expenses that might be incurred under these heads.

The Application Process for Fair Deal
Applicants can simply go through the online process and download the application form from HSE’s website. Then send the form and the mentioned documents to the local nursing home support office. You can find offices of nursing home support schemes in Dublin, Cork, Galway, and all major cities.

    • Application Submission: Once the form submission activates the care needs assessment. HSE personnel will contact you to take it further. 

    • Assessment for Care Needs: HSE will first conduct the Care Needs Assessment to ascertain the need for long-term nursing home care. The assessment is generally carried out by the healthcare professionals appointed by the HSE. Applicants are assessed based on their ability to perform routine activities apart from the family and community support that is available to the concerned individual. On completion of the same, the concerned healthcare professional submits their observations to the HSE concerning the need for nursing care.

    • Financial Assessment: This assessment aims to evaluate the extent of financial contribution from the applicant’s end for nursing home care after a due appraisal of their income and assets. Once the weekly contribution of the applicant is decided upon, HSE pays the balance amount to the concerned care centre as a part of the state’s contribution.

    • Applying for the Nursing Home Loan (optional): As a part of ancillary state support, individuals approved for nursing home care can optionally apply for the Nursing Home Loan only if they are the rightful owners of assets like land or property. If the loan is approved, the contribution of the said individual can be deferred, and HSE would pay the money and recover the same by liquidating the said assets upon the owner’s demise.

Aiming For Fair Deal Solutions in Dublin, Cork, Limerick and Galway 
Individuals applying for the said process might encounter difficulties while navigating the stages of the application process. If the applicant is a patient with dementia or a similar condition that reduces their capacity to consciously consent to the scheme or the associated financial decisions, then they can appoint a care representative, who could be either of the following: 

    • A care representative (a person appointed by the Circuit Court)

    • A Ward of Court (a person appointed by Office of Ward of Courts)

    • A holder of a registered enduring power of attorney (chosen to act on behalf of another person)

You can find specialised professionals offering Fair Deal Solutions in Dublin, Cork, Galway, and other major cities. The professionals take on the responsibility of providing essential advisory and assistance as a service to applicants in the respective grey areas of the funding process, thereby ensuring the timely grant of the said benefits.