Do You Qualify For The Fair Deal Scheme in Ireland — An Insight for Modern Families?

Choosing the Fair Deal Scheme in Ireland is a complex decision for anyone, whether or not they have inheritance plans for the future. Eligibility, in this case, is not only about an applicant getting a grant but also about the applicant getting a reasonable solution, and having truly “fair” use of their income and assets. 

Today, even when the rental income from family homes is exempt from the cost of care, experts suggest that wealthy seniors might be better off paying nursing home costs by themselves, practically dissuading them from applying for the scheme. 

To achieve better outcomes, this blog explores the realities of "eligibility" for the Nursing Home Support Scheme and focuses on the ideal candidate.

Who Can Apply For the Fair Deal Scheme in Ireland?

The HSE has suggested a very generalised definition of eligibility criteria to apply for the Nursing Home Support Scheme—any ordinary resident of Ireland who needs long-term care. The same criteria make you eligible for a medical card. Ordinary residents are anyone who has spent three or 3 tax years in the country and paid Irish tax. They can be foreign nationals too. 

There is no age limit to apply for the scheme. There is no minimum requirement statement for income and assets that you ought to have. So it can get confusing to know whether you are an ideal candidate. Until and unless you apply for the scheme and see for yourself. 

Considering Cash Flow Modelling for Eligible Candidates 

Nursing home care is skyrocketing in Ireland. It is a lot of money, even for the wealthy. 

According to data released by the HSE this year, homes under its management receive much higher reimbursements under the Nursing Home Support Scheme (Fair Deal Scheme). The weekly average fee for HSE homes was €1,564, while the fee for a private home was €968.

Moreover, due to the shortage of beds and so many nursing homes shutting down during COVID-19, the demand is high and you stand a fair possibility of ending up at the end of a waiting list. 

Eligibility is a two-way street for the Fair Deal Scheme. While finding out whether you are eligible for the scheme, figuring out whether the scheme is right for you is also essential. 

Cash flow modelling is an effective way to forecast the impact on your wealth and assets in the long run and judge for yourself if going for the scheme is a worthwhile decision. Below are some key considerations to influence your decision. 

Tax Exemption:  You may claim tax relief on your care costs, but it is only available for full-time nursing home patients.  

 Rental Income: New channels of income are now approved, notably for nursing home residents being able to keep their income earned by renting out their property, but this only applies to principal residences and impacts your tax exemptions as well. 

Family Wealth Transfer Planning: This reveals a lot of important factors for those who have an estate and intend to pass on property and assets to the next generation. 

Although the fair deal scheme is not suitable for everyone, it can be applied for later and does not have to be applied for as soon as a person enters long-term care; therefore, people should not rule it out in case their circumstances change.

Making Conscious Decisions When Applying for the Fair Deal Scheme 

Before you apply for the scheme, however, it makes all the sense to consult an independent fair deal scheme advisor. Tom Murray’s Fair Deal Advice is somewhat of a monopoly for the idea. It is a consulting firm that offers valuable resources for Fair Deal Scheme applicants to aid personalised decision-making. Speaking to the experts beforehand saves you from unforeseen pitfalls.