How Fair Deal Scheme Contributions Work for Families

 

Succession leaves a big gap when it comes to planning the contribution as cost of care under the Fair Deal Scheme Ireland. 

Let's start with the principal residence. Applicants are entitled to pay 7.5% of the value of the property every year. The payment has a 3-year Cap. For instance, suppose the value of your house is €380,000 you have to pay €28,500annually for 3years. If you are co-owning the house with a spouse or other family member, then the amount reduces to 3.5% annually and 11.5% for 3years. 

You have to pay 80% of your income/pension/savings combined that leaves you with 20% to spend on your needs. So you can either save enough money from that 20% to pay this amount, or go for the Nursing Home Support Loan Scheme. In most cases, applicants require the loan. 

 

Paying For Nursing Home Care And Keeping The House

The amount you have to pay to the Nursing Home on a monthly basis is assessed at the outset. This reflects the income and assets earned by and owned by the person getting the Fair Deal. Unless the Nursing Home Support Loan scheme is availed, there is nothing to pay except the bill each month. After the first 3 years, the applicant would have to pay 80% of the cash asset each month. 

The total of 22.5% payment against the value of your property, once addressed, families get to keep the principal residence, even after the lifetime of their loved one. Now if the homeowner has availed the Nursing Home Loan, in that case it might be very difficult to keep the house. 

The Fair Deal Scheme Ireland: Income Assets and Families

It is only the applicant’s assets and income that is counted. Not of the families. If you have previously owned the property and handed it over to your children beforehand, then you may be exempt from the payments against the asset. 

But you have to disclose this to the HSE and let them decide. Even if you do so, you have to pass at least 5years to apply for the Fair Deal Deal Scheme. And it only applies to first time applicants. If you have already been rejected once, you may apply again after 6month. But if you reapply after a property transfer, you will never get approval. 

Which is why, it is always advised to consult a Nursing Home Support Scheme Guide before your first application. Because, despite the fact that the rules appear to be straightforward, there are minor nuances in the policy that can have a significant impact on your eligibility for funding.

 

Best Benefits For The Cash Rich and Asset Poor 

The Fair Deal scheme is intended to target financially disadvantaged individuals in order to provide quality nursing home care. All of this is theoretical. Those who do not have children or family members to pass on the primary residence have the greatest advantage. Even better, if you live in a rented apartment, you are completely exempt from paying the asset payment!

Individuals who are single and in need of proper care in their old age are given top priority under this scheme. Ideally, their home and other assets are streamlined so that they only have what they need to live comfortably in nursing home care. 20% of their income and €36,000 in savings

Fair Deal Advice - How Can We Help?

 

Let’s chalk out a situation where someone close, especially a family member, has reached a stage where admitting them to a nursing home is the wisest thing to do. The first step is to conduct a quick R&D using the search engine to find out about the available nursing homes near you. And, the second most immediate step is to apply for a Fair Deal Scheme to sort out the financial matters. It’s evident from the scenario that Nursing Home Support Scheme (NHSS) is the most important thing today. It’s as vital as having health insurance planned to share the burden of hospitalisation bills with the Irish Government.

There is no wonder why private and confidential advisory service providers as Fair Deal Advice exist. As an organisation, we work with a team of advisors and accountants to help potential applicants understand the process and encourage them to enrol. However, this was just a part of our services. Let’s check out what other solutions can you expect from us.

Services Offered to Every Applicant Seeking a Nursing Home Support Scheme Guide

1. Consultation

At the onset, potential applicants have several doubts about the rules, things to avoid, do’s and don’ts etc. Some are generic, whereas others are specific to your situation. All these questions need answering. Under the stewardship of Tom Murray, we pass on the relevant information to those applying for the NHSS. Post consultation, the ideas shall be clear to you. You can then decide whether to proceed or dump the plan. Most of the time, they go in favour of it.

2. Filling up of the application

Now, the service above covers almost everything. Enclosed below are the rest that is looked into: -

ü  Analysis of the individual’s situation from a financial and medical perspective to check if the person is eligible for NHSS

ü  Determine the optimal structure of the application to best suit the applicant’s financial situation

ü  Map out the contribution of the applicant and that of HSE

ü  Hand out a booklet enclosing all the necessary information about NHSS for reference purpose

ü  Fill up the application form on your behalf to take away the stress

ü  List down the impact of NHSS on your pension and income

Book an Appointment!

The NHSS is quite complicated with endless terms and conditions. It’s challenging for a new applicant to understand them without getting confused. That is when we step in and simplify life. In exchange for a nominal service fee, imagine setting yourself free from the turmoil - both physical and emotional. More than that, it’s the satisfaction of watching your loved one receiving the desired level of care at a nursing home. Get your appointment today if you are convinced of the services!

 

#Nursing Home Support Scheme Guide #Fair Deal Scheme #FairDeal

Fair Deal Scheme Case: Can an Applicant Pay for Bills and Gifts after Enrolment?

 

Despite the fairness of the Nursing Home Support Scheme, situations arise where one is compelled to question it. However, every time, the Fair Deal Scheme proves its relevance in the life of the elderly. A similar case has been discussed here. You may find yourself in a similar position in future. Therefore, it is better to check out every possible scenario and act accordingly to benefit from the scheme.

Situation:

Suppose you enrolled for the Nursing Home Loan Scheme. Now, the question is - how will you support the expenses that you earlier used to cover? For instance, you may have health insurance, house insurance, bills for activities and hairdos to pay. You may also have grandchildren. What if you feel like gifting them money for their satisfactory academic performance, birthdays, little achievements etc? Many of you may suggest bearing the expenses from her savings. But is that accessible, given her enrolment in the scheme?

Resolution:

Firstly, the case can be distressing for someone who has to see his relative moving into a nursing home to seek long-term care. Let’s think practically instead of emotionally. If any of your parents have sought the Fair Deal Scheme, it is a wise decision on their behalf. The Irish Government via HSE is willing to bear a part of the expense, but the problem crops up when 80% of your income and 7.5% of your assets goes into meeting the cost of care. One is often left with little to support lifestyle.

However, let’s get this clear. Certain things like tax bills, local property tax and outstanding loans are deducted from one’s income before the 80% assessment is run. Similarly, others like ancillary expenses for the applicant in the nursing home, including activities for hairdressing are not taken away. Since these are all necessary to remain physically active, mentally sound and for maintenance of self-image, paying from the 20% that one retains is quite reasonable.

Speaking of insurance for the family home, despite the contribution towards the cost of care, most of the applicants choose to retain the asset. The reason is pretty simple. If the only surviving owner sells off the property, the money thus received shall move into his savings account. As we all know, the same is subject to 7.5% towards Nursing Home Support Scheme cost of care. It hardly makes sense to contribute from that part of one’s income.

In a nutshell, a lot of expenses are covered by the 20% residential income. After all this, monetary gifts to grandchildren or anyone seems impractical. And even if some amount was made in the past 5 years, those shall count when HSE would assess the savings of an applicant. However, the decision to make such monetary gifts is still the applicant’s choice. It's definitely possible but may end up straining the balance left for covering emergency needs.

Wrapping up:

Revisit this blog section to know more about such cases happening in the lives of applicants and never feel yourself to be alone. There is always a resolution to every scheme problem. There is also a way to tackle similar instances. It’s approaching a Fair Deal advisor right from the beginning to avert such issues in the very first place. Now, it’s your call. Make it count!

 

Is Fair Deal Scheme Applicable for Someone with No Family Assets?

If you are a citizen of Ireland, you shall be knowing about the Fair Deal Scheme. Alternatively called the Nursing Home Support Scheme, it’s a thoughtful initiative on the part of the Government to financially support people requiring long term nursing home care. However, the terms and conditions clearly state that applicants have to contribute 80% of their income and 7.5% of their asset value every year to avail of the Fair Deal Nursing Home Scheme. But what if the applicant has zero assets in possession? Does that mean the individual shall be deprived of home care? Similar cases arise every day and leave potential applicants in distress. Hence, we thought about discussing the situation under this Nursing Home Support Scheme guide.

Case of No Family Assets

If you are a part of a couple, you have every right on your spouse’s assets upon his/ her death. This clause stands applicable even if your spouse has transferred all property, savings and everything under a will to siblings, children or any other relative. In Ireland, it’s called a legal right share. Have children at home? You have rights over one-third of the property. Have no kids? In that case, you have right over half of the property. Make sure you claim it within 6-12 months after your spouse’s demise.

As for family home is concerned, no matter how terminally ill your spouse is and fails to contribute to your nursing home care, the property belongs to the couple. So, you also have right over it. If you check the Family Home Protection Act of 1976, you shall come across a clause where it’s clearly mentioned that a spouse has all rights over her in-law’s property and that the family home cannot be sold unless the couple together has agreed over it. In a nutshell, both the spouses have equal rights over the estate, irrespective of ownership.

Now, if you recollect the points discussed above, you shall discover that in a way, you do have income and assets. If you apply for the Fair Deal Scheme, HSE shall calculate your contribution based on half your assets and half your family income. The charges come to around 3.75% per annum if your spouse is alive, but if not, it would rise to 7.5% of asset value. As for income contribution is concerned, it stands around 40% of the family income if your spouse is breathing. But this may exceed to 80% of State income upon the death of your spouse. The assumptions here are: -

ü  You are unemployed and have retired

ü  You have a spouse, but your partner is terminally ill and has retired

ü  Your spouse is unable to afford your nursing home care cost

ü  You have a family home even if your spouse has transferred the ownership rights to your children or siblings

If, for instance, you die while seeking nursing home care under the Fair Deal Nursing Home Scheme, the charges shall be levied against your family home. Your spouse may defer the nursing home loan until he/ she dies. But in case of death, your family can postpone the payment only for 12 months.  After this, someone representing you both shall have to contribute.

Wrapping up:

The Nursing Home Support Scheme is quite flexible and always finds a way to support you financially. Let’s not worry about assets or income. No matter what the circumstance is, you shall eventually draw benefits from HSE. It might appear, at first, that you have no property because you or your spouse has willed it to someone in the family, but it shall continue to be your family home, and HSE shall levy charges against it. As for income, even if you have zero savings, you are always eligible for a State pension, and the concerned authorities shall charge from there towards the Nursing home support scheme cost of care. Appoint an advisor if you still have doubts in mind.

 

When Do You Need A Power of Attorney - The Fair Deal Scheme

 

There is constant talk about the importance of having an Enduring Power of Attorney in place, for senior individuals, especially, when it comes to decisions like applying to the Nursing Home Support Scheme.

Why is it that important?

The lack of an Enduring Power of Attorney may reject your approval to get Nursing Home Care funding if you are not mentally capable to consent to the decision. A common complexity faced by individuals suffering from dementia! Here's everything you need to know. 

What Is An Endurance Power of Attorney  

Power of Attorney (PoA) and Endurance Power of Attorney (EPA) are two different things. While the former is focused on business processing, the latter is more about personal life, personal finance and assets and medical needs. Without having an Enduring Power of Attorney, it is illegal to access or use a person's money. It is a legal document wherein a person acts as a "Donor" and appoints a trusted person as their "attorney" to act on their behalf to make crucial life and financial decisions, in the case the former becomes mentally disabled.

How EPAs Impact Fair Deal Scheme Approval 

 Every year, the Fair Deal Scheme rejects hundreds of such applications where the applicant lacks the cognitive capacity to make decisions for themselves and their family members aim to arrange for nursing home funding. Isn't that heartbreaking? Do you know the reason? The absence of an Enduring Power of Attorney!

In Irish Law, which is pretty much the same in every other country, assessing or using someone's money and assets is illegal.

Now, senior citizens are highly vulnerable to dementia, paralysis and many other ailments that affect cognitive power. Such health disorders can cause mental instability, memory loss and overall lack of mental capacity to make a conscious decision about their finance, property, personal care or nursing home care.

Now, it often happens that individuals who need Nursing Home Care lack the mental capacity to consent to it, let alone carrying out the application process, et all. In such cases, it is only radical for loved ones and family members to step forward and act on their behalf. 

Family members can place their loved ones under private Nursing Home Care at their own expense. However, the framework of the Fair Deal Scheme is different from private nursing home care.

To get the grant, one has to merge their own income and assets with the scheme. That is the only way to do it. Family members cannot intervene in bringing their assets and income, and it won't be functional either since they would be using the home and the money for living.

If joint signatures are not in place on bank accounts or if a Power of Attorney or Enduring Power of Attorney is not in place, the applicant may have a large sum of money in the bank and property that cannot be accessed.

Conclusion

More and more senior citizens are activating their Endurance Power of Attorney. Without this document in place, property owners may get locked out of their assets for good. So get it done now if you have not passed on the property to your family members.

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.