To Sell or Not to Sell Your House? Fair Deal Advice Counsels Spouses with an Ailing Partner

Fair Deal Scheme has simplified the lives of many with the Irish Government funding the long-term nursing home care bills of its applicants. However, the situation still appears tough for some of them, especially for couples occupying the family home all alone with no earning family member and their spouses availing the benefits of the Nursing Home Support Scheme. Many resorts to way outs like selling off homes and moving to retirement centres. They are mostly worried about tax implications after the death of their life partner. The question is - how wise is it to sell off family homes to support their living after their mates pass away, or let’s say even under the Fair Deal Scheme? The post today shall throw light on this fact so keep perusing till you find the justification to quench your curiosity and bring you peace of mind.

The Problem

As we all know, Fair Deal charges 3.75% on assets and 40% on income when calculating contributions for couples. There’s also the privilege of availing of a nursing home loan to cover the balance in case one fails to afford them. From the outset, it’s quite fair and considerate towards applicants, especially couples. Despite the facilities, many applicants still face challenges in paying for the nursing home care for their spouse. That’s when they think of getting rid of the property to support your lifestyle. However, it’s not quite a sustainable resolution since the spouse’s care shall ultimately eat away the money obtained from the sale of your family home if the person continues to live longer. As for affording the rent at the retirement centre is concerned, the life partners of Fair Deal beneficiaries would need steady income or ample savings to support their stay. Managing everything can be a bit challenging.

The Resolution

Getting rid of a family home while your spouse is still alive at the nursing home under Fair Deal for the sake of paying the bills is a reckless thing to do. The wisdom lies in retaining the property for as long as your life partner is breathing. On demise, the HSE shall charge no more against your property with the maximum payable to be 11.25%. Moreover, you may have to repay the Fair Deal loan right after selling off your property with no further deferring of the borrowed sum. This may not be discouraging though. However, Fair Deal Advice - a team of advisors for the scheme applicants, believes it’s best to sell off your assets if the cash obtained meets both the long-term care needs bill and supports your shift to a retirement centre thereafter.

Postscript:

Such situations are best tackled under the guidance of Fair Deal advisors. Seek the advice of them without letting the complications stress you out! In case you are seeking the finest in this field, get in touch with Fair Deal Advice - an Ireland-based company offering private and confidential advisory services.

Fair Deal Scheme in Ireland: Are You Paying Double the Contribution Towards Nursing Home Care?

 

Fair Deal, the scheme which promises the elderly financial independence, often evokes curiosity in the minds of individuals. One of the common doubts for those investing in Approved Retirement Funds (ARF) and shares is whether this together with Fair Deal Nursing Home Scheme is charging double your contribution. Things like whether it’s worthwhile to divest assets before applying for the scheme is also a universal query among those approaching old age. If you are among them, then you are in luck today because the blog post is all about divesting, ARF and shares.

Is Divesting a Good Idea Before Applying for Fair Deal Scheme in Ireland?

Let’s admit that no one consciously wants to pay the State more than what is desired. Knowing that Fair Deal Scheme demands a 7.5% charge on assets, savings and investment, many individuals gift a certain part of their assets to a family member to evade and minimise the expense. The question is - how wise is the decision?

If you apply for the Nursing Home Support Scheme within 5 years of gifting them a fraction of your assets, there is no point in taking this step. That is because the financial contribution shall still cover the value of those assets that went into gifting. However, if you feel there are no chances of you seeking nursing home care anytime soon and can meet the 5-year threshold then divesting is a good idea.

What if you suddenly fall sick? In that case, you may delay applying for Fair Deal Scheme until you meet the 5-year threshold by spending for the bill from your pockets. However, it makes no sense to pay a hefty amount worth €100,000 towards the nursing home bill just to save a fraction of your assets.

What About ARF and Shares?

ARF, as we all are familiar with, is the control exercised over retirement savings by people serving the private sector. Under the scheme, the investor must withdraw at least 4% every year till the age of 71 years, after which it rises to 5%. Whether you take out from that account or not, you shall have to bear the brunt of the tax.

If anyone from that segment of the population, working in the private sector applies for Fair Deal Nursing Home Scheme then the 80% contribution from annual cash income shall apply on that withdrawal. The rest of the fund value is counted under 7.5% asset contribution. Now, many of you might question the State for charging you twice, once for nursing home care and the second time for the sake of income tax. People undergoing such a circumstance must know that the purpose of Fair Deal is to provide access to nursing home care to the needy and not save their assets. Despite that, the scheme is liberal enough to leave over 3/4^th of your family home value for your successors. However, if you still feel the contribution towards long-term nursing home care is exceeding the cost borne from your pockets, then Fair Deal Advice in Ireland feels it’s better to manage the expenses all by yourself though it’s not a very smart step to take. A word of advice would be to plan by checking the details of the Nursing Home Support Scheme in advance because health-related exigencies arrive uninvited.

Postscript:

An advisory body as impartial as Fair Deal Advice in Ireland can walk you through the process and eliminate all your misconceptions regarding the scheme introduced by the Irish Government. You just need to fix an appointment with the advisors as soon as you decide on taking financial help from the State and clear your doubts without falling for delusions.

 

Nursing Homes Support Scheme Guide - Researching And Choosing The Perfect Nursing Home

 

 

Whether you are looking to place yourself or a loved one under Nursing Home Care, start researching the facilities early on and don’t wait until the moment you are ready to move.

Because as this is going to be the New Home for future residents, it is crucial to understand that all Nursing Homes are not the same, so take more time to research, check out the facilities in person, meet and evaluate the people, and leave no room for preconceived notion about this being a comfort zone and whether you or your loved one would be adjusting well in the new environment. Moreover, there are many hospital patients who need direct Nursing Home placement after getting discharged from the hospital. So family members or caregivers should consider the importance of having prior knowledge about the best facilities to place the patient, and avoid impulsive searches at the last minute.

 

Researching Facilities, Budgeting, And Considering The Fair Deal Scheme

 

It is an established fact that In the Republic of Ireland, Nursing Home Care is expensive, and sometimes it is even unaffordable for individuals with below-average financial assets. On average Private Nursing Homes charge anywhere between €1,200 to €2,000 per week. While under the Nursing Home Support Scheme it is roughly around €1,080 to €1,395.

So you see, the scheme does not wholly take away the cost, and you still would have to pay for it. The amount, of course, depends on the level of your income and any assets that you might own. So it is more or less a Funding Policy that is offered by the HSE, on behalf of the Irish Government.

With an overall 19% of Ireland’s population being 65+, with the highest populated cities like Cork, Dublin, Fingal, Kildare have a senior population ranging from 9% to 36% of senior citizens. With around 400 Private and Voluntary Nursing Homes across the country, there is high demand with over 98% occupancy. Availability is a huge concern. So be prepared to run for it.

Consult An Independent Advisory As Your Nursing Homes Support Scheme Guide

Online research has become widespread, and you think that calling the facility and discussing the cost and amenities would be enough. But you can never be sure of the Quality of Care, until and unless you pay a visit to the facility and inspect the place on your own terms.

Furthermore, be more realistic and practical in terms of choosing a facility. It is common sense that many people tend to select the facilities based on the decor elements and how nice the place looks. But while that does make a difference, never take hygiene, healthcare and Record of Care at face value. Research the background of the Nursing Home, and evaluate their grievance cells if they got one, or simply go by the traditional “word-of-the-mouth” to assess how good the caregivers are to their residents. You can also talk to residents if it is allowed, to assess the quality of care.

Explore the lifestyle activities that are available in the facility, from walks in the gardens, to pet therapy, classic movie screening and so on. The behaviour of the staff is also crucial to maintain a holistic stay. How they interact with you, and well-groomed they are, these things do make an impact.

Does Fair Deal Scheme Seizes Property and Leave Disabled Family Members Homeless?

 

Many have criticised Fair Deal Nursing Home Scheme on the grounds of leaving financially vulnerable family members homeless after an aged applicant’s death. Do you think the Fair Deal Scheme, which was designed keeping in mind the desperate need for financial support to cover the cost of long-term nursing home care, would be so harsh on family members? The blog today explores the same. Read on if you belong to a household where the eldest member is a beneficiary of the Nursing Home Support Scheme.

If you rethink the scheme and its terms and conditions, you will remember the capping on total contribution over the 3 years term. It’s 11.25% in place of 3.75% for applicants with spouses wishing to defer the loan repayment until the former’s death. Needless to say, the scheme thinks in favour of applicants and their family members.

The question, however, is - will the Fair Deal Scheme be kind towards a family where the eldest member, who was once an active applicant, dies leaving behind disabled sons to bear the Nursing Home Support Scheme cost of care? Does this indicate selling off their ancestral property to acquire funds for clearing out the dues? To be honest, many have questioned the same and the write-up today aims to address it.

Firstly, it’s already stressful for a family to undergo the unfortunate demise of the eldest family member. The presence of disabled sons or family members adds to the woes. Naturally, the query is who will pay the 22.5% contribution? Experts believe it’s not at all mandatory to trade the residential property in exchange for a hefty sum to meet the dues. There is complete freedom to raise the funds from other sources. However, in the case of a family, where two of the sons or members are disabled, meeting the deadline of 12 months is next to impossible. There is only one way left and that is deferral.

Fair Deal clearly states that a household can postpone payment if a relative receives a disability allowance or maybe a non-contributory State pension or visually impaired pension. Now that you know that the family qualifies for deferral, anyone from the household has to apply for it in person to the local Nursing Home Loan Support Office. On acceptance, the unpaid contribution shall no longer fall as a due, restoring each of the member’s peace of mind.

Final Thoughts:

In the end, all we can say is that Fair Deal Nursing Home Scheme is compassionate towards all its applicants and their family members. Nobody goes homeless until and unless the applicant wishes to. However, it’s always better to consult an advisor to best understand the process and take steps accordingly.

 

Fair Deal Scheme: The Way We Care for the Elderly has Changed

 

Gestures of love and care shown to aged parents vary from one person to another. While some visit their elderly parents’ house on weekends for the company, others accompany them to the doctor’s chamber. However, the definition has changed ever since the Fair Deal Scheme got introduced. Today, adult children who genuinely think about the wellbeing of their aged parents, avail of HSE’s Nursing Home Support Scheme to subsidise the cost involved. It’s the new standard of care in Ireland and people are increasingly applying for the scheme on behalf of their elderly parents, who are suffering from severe mental and physical conditions.

If you are planning to take it up for your mother or father or any of your close relatives who are suffering from physical and mental incapacity, go ahead. There’s every reason you should involve the HSE to fund a certain amount towards your loved one’s nursing home care.

Much like every Irish Government scheme, this too suffers the lashes of the public. Many have criticised it on the grounds of being means-tested. In other words, they believe that the benefits of the Nursing Home Loan Scheme stand eligible only for those who have sufficient income and assets. They also feel that the bequest of the farm left behind for the next generation has become riskier. Well, haters are going to hate, no matter how lucrative you make a scheme. So, disregarding all facts, let’s move ahead to check out the benefits it can bring upon your ailing loved one.

The Nursing Home Support Scheme is the greatest gift you can present to someone you love and care for. It covers the following:

Ø  Appropriate care at one’s chosen nursing home.

Ø  Therapy along with some basic aids and appliances to help patients with their day-to-day activities.

Ø  Laundry service, bed and board.

Ø  Medical care, including medication and GP charges.

All that an eligible person has to fulfil are certain conditions, three of which are the most critical:

1. Care needs assessment - This part of the application examines the applicant’s eligibility for long-term nursing home care.
2. Financial assessment - This part, on the contrary, takes a look at the income and assets of the applicant and calculates the person’s contribution towards his/her cost of care. Based on this, the HSE determines the State support that the applicant is eligible for.
3. Nursing Home Loan Scheme- This one is a true saviour for those who wish to defer their contribution to a later date.

Final Thoughts:

After retirement, the only dream of aged parents is to live an independent life, without being a burden to their adult children. Today, that’s possible with the Fair Deal Scheme. Those who truly care for their elderly and ailing parents or loved ones, make it a point to fill up the application form and cater to their long-term nursing home care needs. So, it’s like a standard of care, expected by the aged population from their adult offspring.

 

Fair Deal Scheme: How is it Helping People on their Life’s Financial Journey?

 

Growing old is no longer a thing to fret about. The credit, of course, goes to HSE, working on behalf of the Department of Health in Ireland to assure Fair Deal Nursing Home Scheme applicants of long-term care in exchange for a nominal sum. Under its presence, many can now heave a sigh of relief in knowing that there’s the State to back you up, irrespective of your financial condition. How? By paying the balance to your choice of HSE approved Nursing Home. And you can return the favour over your lifetime through the Nursing Home Support Scheme cost of care contributions, charged over income and assets.

All you have to do is fill up an application form for the Fair Deal Scheme by following the steps below:

1. Go ahead for a Care Needs Assessment to verify that you need long-term nursing home care.
2. Let HSE assess your financial condition and determine the cost of care contribution to the State.
3. In case you wish to seek additional assistance, you must apply for the Nursing Home Loan or the Ancillary State Support. Under it, the State advances full financial support for the time being and charges it from one’s property assets at a later date.

This is how the loan builds up with the State paying all your Nursing Home contributions. You have to repay it:

ü  From your estate when you pass away

ü  From the money you gain from selling or transferring your property

ü  When the bank announces you bankrupt

ü  When you provide false or misleading information while applying for the Nursing Home Loan

Bear in mind that the HSE shall charge interest rates on the borrowed sum, payable during loan recovery. It’s calculated mostly from the CPI (Consumer Price Index).

The Fair Deal Scheme has smoothened life’s financial journey to a great extent. However, there are still some obstacles on the way, be it knowledge gap, lack of awareness etc. Advisory service providers like Fair Deal Advice helps applicants get rid of those hurdles in the following ways:

v Sends across a checklist, enlisting the documents required for a preliminary assessment.

v Reviews the financial position of applicants to help them understand the cost they are bearing today and the financial impact the scheme would have on them afterwards.

v Outlines every step so that it’s easy for applicants to prepare for the application process.

v Helps applicants fill up the application form and submit supporting documents to finalise the process.

Postscript:

Take the helm of life’s financial journey with only that advisory body, who understands the sensitivity of the situation and empathises with you on the difficulty of your circumstance. Fair Deal Advice is one such provider, who not only feels for the client but also offers a professional level of advisory service to ensure the success of the application.

Fair Deal - Nursing Home Loan Scheme - Making A Conscious Decision

For those who are looking to apply for Nursing Home Support under the scheme of Fair Deal in Ireland, here are some of the basic rules to follow to have a holistic settlement. Steer clear of controversies, concepts and the main focus of the scheme. It is pivotal that applicants take a step with full knowledge, confidence and consciousness about what the scheme entails for the person seeking care, the family members and the property. There is no room for general concepts here. 

Fair Deal Scheme And Farming Families

As of 2020, there is still no change in the Fair Deal policy for Nursing Home Support about putting the 3-year cap on Family Farms, as was proposed in 2018. Farming families would still have to choose between the farm and nursing home support for a loved one since they would have to make the annual payment of 7.5% against the property - for as long as their loved one receives care. The 3-year cap currently applies to only residences that have family dwellings.

 

So how is a family supposed to pay against a land? Families would have to either sell or mortgage the farm to a third-party mortgage provider and pay the 7.5% through the interest or mortgage/sell the farm to the HSE under the Ancilliary State Support or Nursing Home Loan Scheme. This scheme entails that you can delay the payment against your property and run the farm is it is for as long as the loved one stays under care. But after their lifetime, you would either have to pay for the entire amount or surrender the property.

 

The moral of the system is that it is most functional for individuals who have a farm, but is not part of a farming family, and who have no successors as such to pass on the property. Whereas, for Farming Families this scheme entails to take more, the more you have.

 

When You Need Nursing Home Care And Have A Good Deal Of Assets

The Fair Deal Scheme is most beneficial for cash poor and asset rich individuals who need long term care.

But in some instances, you can keep your home while receiving Nursing Home Care. Here’s how.

 

It leaves broad scopes of savings, through many exemptions which include a €36,000 savings exemption which is increased to €72,000 for couples. Then you will get Tax Exemptions, Exemptions for Critical Medical Care, important bills, cost of childcare or of a family member, repayment of loans and many others.

 

Ideally, this scheme works for individuals who hare single, have limited assets and live on rent, or those who are already living in Nursing Home Care and looking for a more affordable alternate. However, for those who have a decent pension and a home that they wish to pass on to their children, they might be at a loss of having to decide this or that.

 

The scheme guarantees that no one would have to pay more than their care needs. And whilst there are plenty of controversies regarding the “unfair” policies, there are many aspects of this scheme that make it a truly fair settlement for the financially weak. So have a broader spectrum about the situation and take the advice of Fair Deal Counsellors to make a conscious decision.