How Tax Relief Work Under the Fair Deal Scheme in Ireland - 2022 Update

 

In Ireland, the average weekly cost of a private nursing home was roughly €896 in 2015, or slightly under €50,000 per year. By 2022, that ratio has risen to almost €1,060 per week! Furthermore, additional costs for care, such as nursing home service fees and unique demands for care equipment or therapy, increase the cost.

It is good to know that the care costs contribution under the Fair Deal Scheme is tax-deductible at your marginal tax rate in Ireland. These expenses do not have to be paid by the applicant. A family member or a loved one can pay the care cost on behalf of the applicant, and obtain a tax reduction. There is anti-avoidance providence in place too.

Taxpayers’ Guide for The Nursing Home Support Scheme Cost of Care

If you have a significantly higher pension income, you may be responsible for the majority of the cost under the Fair Deal Scheme. As a result, paying for your nursing home care yourself may be preferable, especially if you are a higher-rate taxpayer who can claim 41% tax relief on the costs of private nursing home care.

There's also the five-year 'look-back' clause, which means that any assets you previously possessed that were transferred to someone within five years of applying for a Fair Deal will still be considered in your financial means assessment.

A reputed Nursing Homes Support Scheme guide recommends that to keep the government out of your assets, applicants who are asset rich but cash-poor must plan their wealth at least five years ahead of time before they plan to enter a nursing home.

 

The Nursing Home Loan Scheme

Under the Fair Deal Loan Scheme or the Ancillary State Support Scheme, there are available claim reliefs on the cost of health expenses. These can be medical expenses for yourself, a family member, or anyone else, as long as you paid for them.

 

If you are authorised for the Ancillary Support Scheme, you can delay the payment of the Nurbased on your assets (land or property). This means that the HSE will pay the money to the nursing home on your behalf and collect it following your death or the sale of all or a portion of your asset.

 

How Health Expenses Impact The Nursing Home Loan Support

 

The Revenue sets a clear guideline as to how the Health Expenses impact the loan. Health expenses that qualify for relief from the repayment  You may wish to defer your healthcare costs. This benefit applies to individuals that have any Ireland-registered property assets, home and farm or land. The HSE provides you with a loan, using your assets as security.

The HSE pays the nursing home immediately for the loan. However, you cannot claim tax relief on the amount paid by the HSE to the nursing home when you sell the asset used as security

upon your death. You or your estate can claim tax reduction on the amount repaid when the loan is repaid. During the tax year, you can claim nursing home charges in real-time.

Additional Relief Included In The Nursing Home Support Scheme Cost of Care

 

You may be eligible for reimbursement for the cost of additional nursing care. You or a family member may be suffering from a serious disease and require home nursing care. On the recommendation of a medical practitioner, you hire a skilled nurse to offer nursing care at your home. Alternatively, you could be in a nursing home and require more nursing care than is usual. Get in touch with a Nursing Homes Support Scheme Guide to get complete coverage of legal and official steps.

To be eligible for this relief, you must provide a medical certificate as well as documents stating the following:

➔    A qualified nurse provides continuous nursing care at the patient's home.

➔    In a nursing home, additional nursing care is available.

➔    The patient's correct name and address

➔    The nature of the patient's illness is described in detail.

➔    The total amount of time that home nursing is being claimed

➔    Full name and address of the nurse, as well as verification of their nursing license.

➔    A list of all payments made to the nurse, as well as all payment receipts 

 

To claim the tax relief and health-related costs can be claimed through my Account or the Revenue Online Service (ROS).

Remember, that only expenses for which you have receipts are eligible for reimbursement. You can get a refund on your medical expenses over the previous four years. If you have private health insurance, you may be able to claim tax relief on the part of your medical expenses that your insurer does not cover.

Things You Didn't Know About Ireland's Fair Deal Scheme

 

Is it necessary for me to sell my home in order to pay my share of the expense of care?

This is by far the most frequently requested question by candidates for the Irish Nursing Home Support Scheme. However, this is not the only confusion that people have as a result of the establishment of bed, boarding, and beyond - here are some important facts that every application should be aware of.

 

It Is State Funding For Limited Income and Assets - You Got To Have Something

Though the scheme is available for anyone who needs long term nursing home care. So it turns out that while you pay less for having limited income and assets, you’d end up paying a lot more if you have a wealthy estate - an amount that is almost as much as private nursing home care. 

So what is the solution? How much are you exactly entitled to pay? And how is the scheme going to work in your case? Read on to have a better understanding.

 

Paying A Portion Of Your Estate - How Does That Work?

Let’s understand what an estate really is. 

It is the land that you have under your name, including houses, farmland and any business. But the cost of care includes your “assets” which means if you have shares, stocks etc. 

The core principle of the scheme is that no one should pay any more than their cost of care - which is determined by their care needs. 

The total value of a property or asset the applicant is entitled to pay is 22.5%, which is dispersed into 3 annual payments of 7.5%. However, for stocks, farmland and other assets, the 3-year cap has yet not applied. Meanwhile, 80% of the applicant’s income or cash assets are collected. While the cash asset is transferable, one cannot simply transfer their home or other non-cash assets.

 

Paying Out The Value Of Property Assets

While cash assets can be shifted on a weekly or monthly basis, how does one pay off a property? The applicant is forced to sell or refinance their home as a result of this. 

The Nursing Home Loan or Ancillary State Support is what discourages the applicant from selling or mortgaging their home. Meanwhile, the cash asset contribution would be free from taxes, critical medical expenses, caring for a child, or caring for other unemployed family members. Furthermore, the first €36,000 in savings would be deductible.

 

Should You See A Care Representative or a Fair Deal Advisor?

Care Representatives, who are frequently nominated by a family member or the HSE, represent an application and perform specific tasks on their behalf. They help applicants who seek assistance but are unable to complete the entire application process on their own.

An advisor may also serve as a Court-appointed Care Representative, but they have more to offer the applicant. Advisors often work on their own and are responsible for leading searchers through the process holistically, avoiding mistakes, and asking the correct questions at the right time. They can also act as a power of attorney or help you obtain one if necessary.

Why You Need To Consider Having A Fair Deal Advisor On Your Side For 2022

 

Independent Ireland recently published an article about how the newest amendments to the 'Fair Deal' Nursing Home Support Scheme could benefit family-owned businesses and farms greatly.

 

The scheme had many setbacks earlier, but thanks to the efforts of President Michael D. Higgins to bring forth the Nursing Homes Support Scheme (Amendment) Bill 2021, the bill is now passed. So now, if you are looking to make an application, then you need to educate yourself about what the new policies entail and how it impacts you and your loved ones.

 

This is high time that you consult with a Fair Deal Advisor to take a conscious step that doesn’t count you out of any of the benefits.

How The Nursing Home Support Scheme Cost of Care Would Work for Business and Farming Families

 

First and foremost, the 3-year Cap now applies to farmlands and businesses, which was only available for family homes previously.

 

The capital worth of a person's primary private residence is only factored into the scheme's financial assessment for the first three years of their stay.

 

All this while the 3-year cap applied to farms or businesses only if the farmer or business owner suffers a sudden illness or disability and as a result requires nursing home care. But now with the new Bill passed, new safeguards have been added to the Scheme owing to the viability and sustainability of family farms and businesses and the scope of family succession.

 

Qualifications and Complications Associated With Nursing Home Support Scheme Cost of Care

 

The new bill doesn’t change the basic layout of cost of care contributions from applicants. That is 80% assessable income annually, plus a maximum of 7.5% of the value of their assets paid annually - which is now capped at three years. The first €36,000 of savings is not included in the financial assessment.

 

For couples, the contribution is reduced to half and the savings exemption is doubled which means if you are a member of a couple, and share your assets and income with your spouse, you have to pay only 40% monthly/weekly for the cash assets and 3,5% annually for the house and other productive assets. At this stage you can seek the Nursing Home Loan scheme, to turn your cost of care into a full-fledged secured loan that you would pay with your house, after your lifetime.

 

It is safe to say that if a person's assessed weekly contribution exceeds the nursing home scheme cost of care, they will not be eligible for the funding.

How A Fair Deal Advisor Can Help You

 

If you are planning to sell your home or farm, then it impacts your funding even after the 3-year Cap. The sale money is most likely to be counted as a cash asset and call for a reassessment of your financial condition. Probably you’d have to pay a percentage of the sale money to the HSE.

 Because some properties may not be able to be sold owing to the owners' lack of ability, it is necessary to sell the residence. The person’s continued participation and eligibility for the fair deal programme may be jeopardised. It will not benefit all inhabitants, especially those in Dublin who own more expensive homes.

 If you are thinking of applying for the  Nursing Home Loan Scheme, you would need a person to submit a written agreement to have a charging order recorded against your asset when applying for this loan.

 All these concerns can create a hassle for you to make a holistic choice. That is why it is strongly advised to seek advice before deciding anything.

 

 

Nursing Home Scheme Cost of Care for Candidates Without Any Assets

 

Many people think that one cannot apply for the Nursing Home Support Scheme in Dublin until and unless they have a home, farmland or any other asset to pay for the cost of care. That is not true. Even if the candidate doesn’t have any assets they can get the Fair Deal funding, but there are certain rules. Here is all you need to know.

 

The Nursing Support Scheme Cost of Care for People Without Assets

 

If you don’t have a family home, land or another asset it won’t affect your candidacy to get the Fair Deal Scheme funding, but there are a few factors that can complicate matters.

However, looking at a true Fair Deal Solution in Dublin and other big cities, usually, people do own a house, which can complicate matters.

 

Now, if the house is a family home, where the candidate’s spouse and children live, it is often not part of the financial assessment. Only when the house is in the name of the candidate, who is shifting to the Nursing Home, that the 7.5% of the house’s total value is incurred.

How Nursing Home Scheme Works

 

The Nursing Home Support Scheme cost of care is the combined sum of your cash assets and non-cash assets. While cash assets are easy to calculate out of the liquidated money that you have, either as savings or a State pension allowance, it is often cumbersome to deduce exactly how the nursing home charges are going to be paid if your loved one lives on rent or is already living in a Nursing Home.

 

Here is the simple answer: you don’t have to pay anything if you don’t have an asset.

Only 80% of your cash asset will be paid and the rest of the amount will be paid by the HSE, on behalf of the State Government. So if you were living in your children’s home, a Nursing Home or a rented space, you don’t have to worry about the asset payments.

How You Manage Your Assets Makes An Impact

 

If you don’t own a home or any asset property, that is okay, but if you give away your existing property to the family as an inheritance, it might impact your funding.

 

You need to wait for at least 5years. Because if you don’t wait that period, the HSE might simply think that you purposefully transferred the family home to family members to evade the cost of care.

 

Seek the Guidance of a Consultant for a Complete Fair Deal Solution in Dublin

Several hundreds of Fair Deal cases just get delayed in the waiting list for long periods, and it is about time that you meet an expert consultant who gives you more clarity of the situation, especially when things like family home and assets are involved.

Seek a complete solution when you plan to apply for the Nursing home support scheme in Dublin and other big cities in Ireland. A consultant, like the Fair Deal Advice, is the next best thing, that is headed by Fair Deal expert, Tom Murray. With the right kind of guidance, you are bent on making a conscious decision that works in your favour.

 

 

Getting a Nursing Home Support Scheme in Dublin and Big Cities

 

 

When getting the Fair Deal Scheme the amount of the cost of care and the candidate’s contribution towards it is not as straightforward as it is stated by the HSE and Citizen Information websites. And when you are getting it in the big cities like Dublin, Galway or Londonderry, the expense is usually even higher.

 

While researching the matter, seekers can find plenty of content on the internet explaining “how the Fair Deal Scheme works”. However, most of it says all the same thing, leaving a big gap in the information, beyond the generic framework. Much of that gap is covered in this article.

 

Nursing Home Support Scheme Cost of Care

The cost of care is usually calculated on a weekly basis, and in most Public Nursing homes in Dublin, it is more expensive than private homes.

The cost of care in a public home can be around €1,564 on average, whereas the agreed-upon maximum billable price for private or voluntary homes could be only €968 per week. That is more than a 60% difference.

The Irish Times cited a report by Comptroller Ireland, where it is stated that the HSE paid out €969 million in support of over 23,000 people under the Fair Deal scheme in the year 2018. Moreover, an additional €343 million was allocated to nursing homes through resident contributions. The system covers over 550 nursing homes, with approximately 80% in the private and voluntary sectors.

 

Complexities for Determining  A Fair Deal Solution in Dublin and Other Big Irish Cities

As here we are focusing on the Nursing Homes Support Scheme Guide Galway based cases can use, the scheme works the same way for all regions across Ireland. The guidelines are pointed towards situations that are not overtly outlined by the web-based plethora of Fair Deal Scheme information.

 

This includes attributes related to

●       Tax Relief

●       Medical Expenses

●       Looking after a Spouse

●       Looking after a family

●       Understanding the significance of a Power of Attorney

●       Guidance of family inheritance

●       Guidance about family businesses and farms

 

Frankly, the Nursing Home Support Scheme in Dublin will cost you more if you have more. Like we said earlier, the scheme is focused on providing for a definite set of individuals, that are in need of home or nursing home care, on a full-time basis, that don’t have the financial or family resources to care for them. If you are considering applying for this scheme you can consult with us, and have a foolproof solution to any glitches or misunderstandings. Find ways that could have the best benefit of this scheme.

 

Nursing Home Support Scheme in Dublin: Making a Decision for Long Term Solution

 

Consider speaking to a Fair Deal consultant or advisory before you make your application. This is because, once you have applied for the scheme, any changes in your assets or finances can impact your eligibility to get the coverage or impact on the contribution you might have to make, especially in terms of home and assets. Be slow and steady and make a conscious decision when seeking a nursing home support solution for yourself or a loved one!

What is the Fair Deal Scheme and how does it work?

 

Whilst a huge number of the citizenry in Ireland are aged 66 and beyond, within 2050 though, the forecast or speculation is rife that the population headcount will overtake a million with staggering expenses. The Fair Deal scheme decreed a law and was initiated later based on the Nursing Home Support Scheme or Fair Deal Scheme, triggers financial aid to the citizenry in need of long-term care at a hospice.

• With the backing of the scheme, you can contribute towards your healthcare costs, and the balance is paid by the health service executive (HSE). Under this scheme, eligible public, voluntary, and private nursing homes are covered. There is a listing of eligible nursing homes that the HSE provides.

• Any resident of Ireland needing health care for a protracted period at a nursing home qualifies for applying for the fair deal nursing home scheme. Once you have applied, typically an assessment of your specific care requirements is done and the outcome of the evaluation may indicate that health care at a nursing home for a protracted period is the optimal alternative that you can avail.

An evaluation of your fiscal circumstance is done to know what would be your contribution in terms of your long-term health care costs at a nursing home.   In case, there is a deficit even after your contribution towards the fees then, in that case, it is typical of the HSE to pay the overdue amount.  Property and savings are assets, that are integral aspects of a review of your financial strength. 

Applying for the Nursing Home Loan is a viable option for you if you intend to defer your alms comprising of your dwelling or any other type of property. In that case, you would be eligible for applying for the Nursing Home Loan.  

 • You are eligible to fill up an application for financial aid for paying health care costs at a hospice with the help of the Fair Deal Scheme.

• Once you qualify for Fair Deal Scheme you would have access to financing for long-term nursing home care.

• You have the option of paying for care privately while financing lingers. Fair Deal financing is effective from the approval date and cannot be preceded.

 

Exploring varieties of Nursing Homes

Before opting for the fair deal nursing home scheme it's crucial to explore varied nursing homes. Ideally, you ought to schedule a nursing home visit before deciding, however, these days a nursing home visit may not feasible at all. You need to get in touch with the nursing home that you prefer and find out whether they can accommodate and fulfill your nursing home health care requirements. The downside is that you may be waitlisted.

If in your preferred nursing home there aren’t any patient beds available then, in that case, you may not have any other option but to reluctantly seek admission in any other nursing home or hospice for the time being or momentarily.                                                           

Planning for Retirement with the Fair Deal Home Loan Scheme in Ireland

 

Under the Fair Deal Nursing Home Support, to contribute to the cost of care towards assets like home and property, it may be deferred until after your death. It is possible if the Health and Security Executive (HSE) approves your application for the Nursing Home Loan Scheme. The scheme entails for HSE to pay the cost of care towards your home or property to the nursing home on your behalf and it will be collected after your death.

 

Understanding the Fair Deal Home Loan Scheme

 

While cash assets can be moved weekly or monthly, how can a property be paid against? That necessitates a degree of complexity when it comes to paying for non-cash assets such as homes, farms, and businesses.

 

This drives the applicant to the point where they must either sell their home or refinance it. The Ancillary State Support or Fair Deal Nursing Home Loan scheme is what keeps the applicant from selling or mortgaging their home. Moreover, if a spouse, partner, or former caregiver still lives in your primary private dwelling, the payment may be withheld for a longer length of time. If a spouse, partner, or former caregiver still lives in your primary private dwelling, the payment may be withheld for a longer length of time.

 

Passing On Principal Residence to Successors and Family Businesses

 

If the applicant is a single farmer with no heirs to care for their farms after their death, this loan could be significant. Furthermore, if an applicant has a spouse who shares the family home and has legal access to the farms, the Nursing home support scheme cost care is cut in half or 11.25%. The contribution attracted by the 22.5%t value equal to the farmland, or 11.25%, must be repaid in 12 months after the person's death.

 

However, this system often hurts agricultural families with children. If children or family members other than the spouse try to meet the loan payback cost by renting out the farm, the cost is treated as a cash asset owed to the farm owner, and the care cost will need to be updated further.

Applying for the Nursing Home Loan Scheme

 

Applicants need to obtain a written agreement to have a Charging Order registered against their asset to apply for the Nursing Home Loan. If the applicant has a wife, husband or partner, then they must also sign a consent form.

 

Each year, the HSE is allocated a certain amount of cash for the initiative, and candidates may be placed on a national waiting list until funding becomes available. If this is the case, the HSE will let you know when it writes to tell you if you qualify for financial assistance for the Nursing home support scheme cost care. When you are approved for financial assistance under the scheme, you will be notified by the HSE.

 

October 2021 Update for Farm Owners and Principal Residences

From 20 October 2021, the Dail announced a new update in the Fair Deal Nursing Home Scheme. It entails that family-owned farms, businesses and principal residences can be included in the '3-year cap', if they meet certain criteria, including that they are family-owned.

 

●       You must apply to the Health and Safety Executive (HSE) to appoint a family successor who will commit to running the farm or business for at least 6 years.

●       For at least three of the last five years, you, your partner, or your potential family successor must have actively run your farm or business.

●       A charge in favour of the HSE will be placed on a business or farm's chargeable property.

 

Applicants must fill up the Fair Deal application form, which is available on the HSE website and submit it to count as their declaration to adhere to the conditions of the policy.

 

Speak To An Independent Advisor To Make A Conscious Decision

 

 

Independent fair deal advisors work independently and are in charge of guiding candidates through the application, management, decision-making, and avoidance of mistakes when applying for the Fair Deal Scheme. When you can take the proper step by asking the right questions at the right moment, it's a safe path out.

 

Independent Advisors may be appointed by the applicant or their family members as a Care Representative to work on behalf of the candidate if they are physically or mentally incapable of doing so.  Dementia or other medical issues are significant causes that make individuals physically or intellectually incapable of handling the procedure alone.

To appoint a Care Representative, the applying family for Fair Deal Nursing Home Support but get permission from the Circuit Court.