Fair Deal Scheme in Ireland Undergoes Drastic Changes: How Have Farm Families Been Benefitted?

 

The long-awaited amendment to the Nursing Home Support Scheme for the welfare of farm families has finally been made. All thanks to the Ministry of State for Mental Health and Older People for realising that it’s unfair for the needy farmers and small businesses to contribute 7.5% of their assets annually towards the cost of care! Mary Butler, the head of the Ministry, also ensured enforcement of the changes before the Dáil summer recess, which was due from 16 July. It’s a moment of joy for farmers who were once worried about their land at stake due to a serious health condition plaguing their avenues to earn in future. Now, those who were oblivious of the situation, let’s take you around.

What was the Situation before the Laws were Passed?

There were times when farm families risked the sustainability of their lands for the sake of affording nursing home bills for long-term care. They feared that nothing much would be left for the next generation, making passing down of the farmland a far-fetched dream. Why so? That is because the Fair Deal Scheme in Ireland necessitated applicants to pay 7.5% of their land’s value every year towards the cost of care of their near and dear one at a nursing home.

If you observe closely, you will find that the contribution was not time-bound. This was worrisome for farm families as they lost the value of their land to afford treatment for an ailing family member.

What are the New Amendments?

According to the new amendment bill, the 7.5% contribution stands capped at 3 years. If you already have a family member undergoing long-term treatment at a State-approved nursing home, then your contributions shall stop immediately. However, if you are in the middle of 3 years, your payment shall cease after completing the stated interval. Unfortunately, the State is not providing reimbursements for past payments.

Eligibility Criteria for a Family Farm Successor

Since the person-in-care is undergoing treatment at a nursing home, the individual must appoint a successor from the family to carry on with the farm operations. Let’s check who all are eligible: -

ü  Someone, who has put in efforts for the past 3 years to run the farm business

ü  It can be anyone who has been working in the farm, irrespective of remuneration

ü  Someone ready to declare that he has served the business, working full-time or as deemed fit

ü  The person should have run the business for at least 3 years in 5 years, not necessarily at a stretch but aggregate

Postscript:

Fair Deal Scheme in Ireland is constantly evolving. It’s challenging for someone involved in business to spare even a few minutes to go through the new changes. That is why Fair Deal Advice, an advisory body offering confidential one-to-one service is crucial. Know your benefits from them and save yourself from going off-track.

 

The Fair Deal Scheme Ireland - Moment Of Achievement For Farming Families

 

The long wait is finally over for farming families seeking the Fair Deal Scheme in Ireland because the Nursing Homes Support Scheme (Amendment) Bill 2021 is finally passed by Mary Butler TD, The Minister of State for Mental Health and Older People. Here’s all you need to know.

What Is The Nursing Homes Support Scheme (Amendment) Bill 2021 And What Does It Mean For Farming Families

 

The effect of this bill would now put qualifying Farming Families and Business Families much at ease. The FairDeal Scheme requires applicants to contribute a portion of their income and assets to fund their Nursing Home Care costs, which is clubbed with Government support to make a substantial lifetime plan under quality nursing home care. 80% of income and savings are paid on a weekly or monthly basis. 7.5% of total assets, including farmlands, used to be paid annually.

 

After the effect of the bill, families would only have to pay the cost of care contribution against their farmland and business for the first 3years while their loved ones stay under Nursing Home Care. Only the monthly payment of 80% of income would carry on. This would mean a great deal of financial relief for farming families. A similar policy has been updated for Principal Residences also, by extending the three-year cap on contributions to the cost of care. It reduces the need for the applicant’s primary residence sale and now farmland/business sales would not be needed to fund a loved one’s Nursing Home Care.

 

HSE is yet to release a formal Nursing Homes Support Scheme Guide. But by approving this bill, the Health Ministry aims to grow more fairness and affordability of the Fair

Deal scheme. Moreover, this move can also remove any barriers for those who want to sell their vacant property while on Fair Deal, which is a critical issue in the current housing crisis in Ireland. However, it is not that having farmland as a property is sufficient to qualify for this exemption. The policy is only available to family successors who are committed to working on the farm or business.

 

Eligibility Criteria for Getting The Farm Relief On Nursing Home Support Scheme

 

The new policy updates are not for everyone, certain conditions and qualifications must be met. The family has to run the farm only then will the 3-year cap work.

 

Another significant upgrade to the policy is that applicants and their families would also be able to sell their house/principal residence if they want to, after the first 3 years of using the Nursing Home Scheme for a loved one. And the best part is that the proceeds will no longer be accessible as financial contributions. Families won’t have to share the money from house sales with HSE.

 

Earlier, if the farmland or business shares were sold, even with the 3-year cap for principal residences, the sale money from the property would change into cash assets and families would have to contribute a big portion of the money towards the cost of care contribution. Not anymore! From now on, once the 3 years are over, you can use your property as you like. However, not the same goes for farmlands and businesses, you have to either run the business or go back to paying the 7.5% annual contribution!

 

While the bill is passed, the new adjustments are not fully in effect. The Health and Security Executive (HSE) is yet to issue the complete guide on how the new amendment would pan out for eligible families. Especially, how it will impact the Ancillary State Support or Nursing Home Loan Scheme  It is only a matter of time, the bill is approved for sure. Watch this space for more information.

 

Fair Deal Nursing Home Scheme: How Does The Financial Support Work?

 

Has your dad or mom reached a stage in life where you believe they might be better off in nursing home? Considering long-term nursing home care because of elderly health issues or age-related medical conditions? Applying for the Fair Deal Nursing Home Scheme can help you with financial support towards the costs of your parents’ long-term care.

Medical care is very expensive nowadays and even more so when the elderly is dealing with a range of ailments that come with age. End-of-life expenses can impose a huge financial burden since most senior citizens find it very tough to cover the cost of their care and it is here that applying for the NHSS can help. Ever since the introduction of the Fair Deal, the way Ireland’s ageing population pays for nursing home care has changed substantially.

Here’s a detailed insight into NHSS scheme and how it works.

What Is The Fair Deal?

The Fair Deal Scheme, also known as the NHSS, is a scheme launched in 2009. It replaced the Subvention Scheme which had been in existence since 1993. Managed by the Health Service Executive (HSE), it is regarded as one of the best healthcare policies in the world towards for the elderly. Under this scheme, you will make a contribution towards the cost of your care and the HSE will be paying the balance.

In order to avail of the State Support, your assets and income are assessed and your weekly contribution towards the nursing home fees is calculated based on this assessment’s income. NHSS covers public nursing homes, private nursing homes, and voluntary nursing homes. Under this scheme, an individual will receive the same kind of State support, no matter the type of nursing home you choose.

What Does The Fair Deal Cover Exactly?

The Fair Deal funding covers the level of care that’s apt to individuals as well as a bed, board, and a laundry service. Also, it covers some therapeutic activities and certain appliances and aids needed to assist with the activities of daily living. If you have a medical card, it must cover the cost of appliances other than medical care like medication and GP charges.

Can Anyone Qualify For Financial Assistance Towards Nursing Home Care?

Any individual who is ordinarily a resident of Ireland and needs long-term nursing home care can apply for the Fair Deal Nursing Home Scheme. At first, you or your loved one need to be assessed if a long-term nursing home care is really needed. If you only require short-term care or convalescent care, you won’t qualify for the NHSS.

You can easily apply to any voluntary, public, or private home that’s listed under the HSE scheme and is assessed as appropriate for your needs. No matter what you choose, you will still get the same amount of financial support.

How Does The NHSS Work Financially?

Once you are assessed as someone who needs nursing home care for a long-term and your Fair Deal application is approved, the HSE will check your income and the assets you own to decide your contribution towards the cost of the care. Under the NHSS, the general formula is that you contribute up to four-fifths (80pc) of your total income and a 7.5pc of the value of assets you own every year to your long-term care costs, with HSE paying the rest.

Furthermore, when calculating the amount you have to pay for your care, the first €36,000 worth of your total assets or €72,000 if you are married are excluded. It is worth noting that you can defer the payment of the 7.5pc contribution until you die. This is made possible by a HSE loan which can be repaid any time.

Wrapping Up:

The Fair Deal Nursing Home Scheme is indeed a blessing for the ageing population. If you want to know more about the NHSS or perplexed about how to apply for it, you can approach professional Fair Deal advisors for assistance.

Do Applicants of Fair Deal Scheme Enjoy Tax Relief?

 

Fair Deal Scheme in Ireland is indeed fair, and there is practically no doubt in the statement. It is a reason why many elderly residents of the State are living independently without seeking financial support from any of their relatives. It also covers certain therapeutic activities and appliances to support daily living.  Apart from the intrinsic benefits, what else do you think are they enjoying? The most significant advantage of paying your part of the contribution towards nursing home care is Income Tax (IT) relief. This is applicable if the applicant receives on-site nursing care for at least 24 hours. Believe it or not, the exemption offered by the Irish government saves quite a portion of the applicant’s income. No wonder the Nursing Home Support Scheme is so popular across the country!

Now the question is when can you claim the IT relief, and on which sum is it applicable? Applicants are mostly confused about them. The post shall answer their doubts today and be their Nursing Home Support Scheme guide in tax relief matters.

Fair Deal Scheme and Tax Relief

As we all know, the contribution towards nursing home care is halved between the applicant and the HSE in Ireland. Tax relief applies to the prior. What about the Nursing Home Loan Scheme? Since the HSE bears it for individuals deferring their healthcare costs by using their assets as security, there is no point in asking for tax relief on the amount. However, upon the beneficiary's death, if a family member repays the loan on the applicant’s behalf, the same person can claim IT relief on the sum.

During a specified tax year in one or two odd circumstances, an applicant can be lucky to receive an exemption on nursing home expenses. The sole condition is to get in touch with a Revenue Officer. You may have to share your claim details for the request to process.

Postscript:

You must be wondering what can be the next course of action. How can you or your relative claim the tax exemption on nursing home bills? Fret not when Fair Deal Advice is here! The advisory body mostly deals with cases of the Nursing Home Support Scheme. It has also helped many make plans for it, complete the application form and guided them through the process. You can always seek assistance from them in matters of IT relief.

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.