Fair Deal Scheme in Ireland—How it Impacts Your Money and Financial Goals

A big part of the Fair Deal–Nursing Home Support Scheme Ireland is financial management. With older citizens being more vulnerable to strokes and paralysis, often requiring emergency care in a nursing home, it makes sense to have a financial plan early on. 

Expert Fair Deal Scheme adviser in Ireland, Tom Murray, advises older adults in their 60s and 70s to establish a power of attorney. Even if the estate owner can't make financial decisions, their loved ones can. This blog offers some valuable insights about financial management, recommended to make your Fair Deal Scheme applications more seamless. 

Fair Deal Scheme in Ireland—Planning Your Money Right 

One of the most significant considerations when applying for the Fair Deal Scheme is understanding how much you will need to contribute based on your assets and income. Even with sensible amendments like the 3-year cap and exemption of rental income, it remains the most logical scheme for those who are cash-poor and asset-rich. 

Fundamentally a “means-tested” financial support, the current Fair Deal Scheme cost of care includes: 

1. 80% of income paid weekly or monthly 
2. 22.5% of the value of assets, including

• Principal home
• Proceeds from the sale of the principal home paid in 7.5% over 3 years. 
• Your farm or business. 

To be honest, even though there appears to be a lot of information about the scheme across the official websites, there are many gaps still, which are yet to be addressed. For instance, if your assets and income exceed the Fair Deal Scheme cost of care, you may not qualify! And look for alternative ways to deal with private care. 

The primary residence is treated differently from other assets. While the first three years of your home’s value are exempt from being counted toward the means test, after three years, it is included in the assessment. In this case, if you have a vacation home, a second property, or land/property in a different country, you may have to part with a portion of the value of that property. Passing on the property to children can get complicated in this case. 

How Inheritance Works in the Fair Deal Scheme

Inheritance is a big consideration for family homes. If you have passed on the property to your children within 5 years of applying for the Fair Deal– Nursing Home Support Scheme Ireland, then it is counted under the financial assessment, and the 7.5% yearly payment is most likely to incur. 

As mentioned earlier, the Fair Deal Scheme assesses the value of your home after three years of care, meaning that those planning to leave their house to family members could be forced to sell it to cover the costs. The HSE provides a Nursing Home Loan Scheme (known as the "Ancillary State Support"), which allows for delayed repayment until after the resident’s death. However, this is only deterring the payment. After the death of the resident, the HSE will send you the notice to pay the loaned amount within a stipulated date. 

Tips to Simplify Fair Deal Scheme Applications 

The Fair Deal Scheme application can be quite straightforward for the informed applicant. It can be aided by a seasoned Fair Deal Scheme adviser in Ireland, to help you navigate the scheme policies in a more personalised manner. 

Documentation: Older adults can be vulnerable to health emergencies such as strokes or paralysis with a higher requirement for urgent nursing home care. In these situations, the ability to access necessary banking information quickly can make all the difference. If a family member needs to step in and access these details for a smoother Fair Deal Scheme application, without prior authentication, banks will not release the information. This is where clear documentation and communication come into play. 

Consolidating the Accounts: Having multiple bank accounts may seem convenient, but when it comes to applying for the Fair Deal Scheme, it can complicate matters. To make the process smoother and avoid unnecessary stress, consolidating your accounts into one or two is a smart move. By reducing the number of accounts you manage, you make it easier for yourself and your loved ones to access the funds required for the application process.

The Bank of Ireland, for example, has introduced the Vulnerable Customer Unit (VCU), which offers enhanced support for customers in vulnerable circumstances. This unit can assist in accessing information needed to apply for the scheme. However, reducing the number of accounts you manage will simplify this process further.

Know If You Are Eligible to Apply for Fair Deal–Nursing Home Support Scheme Ireland

The Fair Deal Scheme in Ireland is a vital financial lifeline for older adults in need of long-term care. However, understanding how it works and how it might affect your financial goals is essential. Planning for future care costs, considering the impact on inheritance, and ensuring that your financial affairs are well-organised will help you manage the application process smoothly.

By consolidating accounts and keeping your children informed about your financial situation, you make the Fair Deal Scheme application process easier and protect your ability to make sound decisions should an emergency arise. As always, consulting a Fair Deal Scheme adviser in Ireland can provide you with tailored guidance to help secure your financial future while ensuring access to the care you need.