Fair Deal Ireland-How The Nursing Home Loan Scheme Works in 2022

 

Are you wondering whether you should use the Nursing Home Loan Scheme to leverage your vacant home to activate the secured loan provided by the Revenue? This gives you a clear picture from a reputed nursing home support guide to help you understand the new updates to the scheme and the 3-year cap.

The Fair Deal Scheme in 2022: The 3-Year Cap on Productive Assets

The Nursing Home Support Scheme-Fair Deal is based on the financial capacity and nursing home care needs of individuals. The state assistance only works as a supplement for the cost of nursing home care for eligible individuals. The nursing home resident contributes a weekly amount based on their means, toward the cost of their care, and the state covers the balance.

A means-tested programme, the Fair Deal State Assistance Nursing Home Support Scheme, is available depending on the applicants' financial situation. The capital value of an individual's principal private residence is only taken into account for the first three years of their time in care when determining their means.

It is only recently that the new Amendment passed in February 2022 made the 3-year Cap available to productive assets as well, such as farms and businesses. Previously, nursing home residents had to pay an annual 7.5% and couples had to pay 3.5% of the current value of their assets for as long as they received nursing home care, until and unless the applicant suffered a sudden and unexpected illness requiring long-term nursing home support.

Furthermore, the three-year cap now also applies to proceeds from the sale of an individual's principal primary residence. This means that after three years, the proceeds from the sale of a nursing home resident's family home are not included in the financial assessment for the Fair Deal Scheme.

Who Needs The Nursing Home Loan Scheme?

This loan, also known as ancillary state support, is provided by the Revenue and spearheaded by the HSE to people in nursing homes who have assets such as land and property.

The loan allows Fair Deal Scheme users to postpone paying for their care until after their lifetime. Securing the loan with these assets During your stay in the nursing home, you will not be required to pay your contribution against the property, and the entire cost will be deducted from your estate after your death.

Applicants must provide written consent to have a charging order registered against their assets when applying for this loan. If they are unable to do so, it will require them to appoint an enduring power of attorney.

Nursing Home Scheme Guide For Loan Support

Ever since the 3-year cap came into effect, it has changed a lot of things for individuals looking for a nursing home loan scheme. Because signing up for this scheme would mean mortgaging the house or farm to the revenue, the homeowner would not be able to pass on the house to their children.

It's worth noting that the financial assessment considers any assets given away in the five years prior to applying for the Fair Deal Scheme. But if you are taking the loan support, your house or farm will still work like it used to, rendering the 3-year cap inapplicable since your home will be under the mortgage.

At the end of the day, you must decide whether you require a nursing home loan or whether you can afford the annual payment for three years and then have your family acquire the home. It's a good idea to look at the Nursing Homes Support Scheme Guide before applying for it. Because you will have a negative impact on your record if you try to sell your house or pass it on to a successor after you have submitted your application.

Father in Nursing Home & Mother Living in Family Home: How Can Fair Deal Scheme in Ireland Help?

 

Situations, where a father is in dire need of long-term care whereas the mother continues to occupy the family home, are common. Is your family undergoing a similar state of affairs? Are you seeking valuable advice on the same? Luck is on your side today. Enclosed here is the resolution explaining the options under Fair Deal Nursing Home Scheme.

How Can Fair Deal Scheme in Ireland Assist in Overcoming the Stressful Situation?

Families living in Ireland often fall into such circumstances. Father draws a pension, whereas the mother feels anxious, fearing her house to be sold off from under her. The best way to approach such a circumstance is by following the steps below:

v  Applying for Nursing Home as soon as possible. Experts recommend to do so at the earliest because the scheme takes a week or a month to set up and initiate.

v  Sit for a Needs-Based Assessment, whereby a doctor or a social worker will certify the urgency for long term residential care despite the community and family support.

v  Once the Health Service Executive (HSE) is convinced of the Father’s incapacity to live in his home, the applicant has to undergo a Financial Assessment to check the amount of contribution towards of cost of care. The State bears the extra expense above the agreed sum at the nursing home of the applicant’s choice.

v  If the mother continues to stay at home, the applicant or the father here, has to pay 40% of the joint annual income. A separate bill on assets is also charged, which is 3.75% every year against them.

v  Under assets, the valuation of land, property and savings are taken into consideration. However, one thing is assured – the house will not be sold, and the mother can continue living there.

v  Regarding payment, the applicant’s family can settle the debt part by part every year or defer it until both the parents pass away. This is where the Nursing Home Loan Scheme makes sense.

We bet all of the above sounds simple, but applicants can always speed up the process by paying extra fees to an advisor and making the person run the calculations on their behalf. They can also rely on the experts to complete the application form and take the load off their shoulders.

Postscript:

Fair Deal Advice is one such advisory body, offering one-to-one consultations to those willing to seek the services of an advisor to enjoy the benefits of the Fair Deal Nursing Home Scheme in Ireland. Book an appointment to get more such queries answered and tread on the best way to progress with one of your parent’s health without the other going homeless!

What are the Expenses Towards Fair Deal Nursing Home Scheme in Ireland?

 

Ireland has been in a demographic sweet spot over all these years. However, its population is ageing and this is going to exert more pressure on older people. They would require ample care for their well-being. By 2051, Irish citizens of 65 years and above will shoot up to almost 1.6 million. Families are starting to look for ways to protect themselves financially.

Thankfully, much of the stress is being alleviated by Fair Deal Nursing Home Scheme! Novices are more likely to be curious about their health expenses towards it. This blog post is dedicated to them. If you are new to it and need an estimate of the overall cost of nursing home care, now is a good chance. Read on to find out how much should you keep aside to fulfil your care needs and live an independent life when moving from hospital to long-term care.

Estimating the Cost of Living in Nursing Homes for Long Term Care

For those who have enrolled themselves under the Fair Deal Scheme, the estimation starts during step three of the Fair Deal application process at the time of financial assessment. Under this step, the Health Service Executive (HSE) checks how much can an applicant pay for the nursing home care. In the process, the income and assets of the person are examined which includes all the factors below:

Ø  Income from dividends, fees, interests and commissions

Ø  Pension

Ø  Transferred income

Ø  Rental income

Ø  Earnings

Ø  Income from directorship or holding an office

In cash assets, the following is evaluated:

Ø  Securities, stocks, shares and miscellaneous financial instruments

Ø  Loans from another person

Ø  Deposits and savings

Ø  Retirement funds

Ø  Cash asset transfers to a third person over the last 5 days

Among non-cash assets, the following is reviewed:

Ø  Business(es)

Ø  Home

Ø  Land and property overseas

Ø  Anything that you own, it can be land or property

Now comes the most important part – who pays how much. An applicant is expected to pay the following:

v  80% of one’s income

v  7.5% of one’s overall asset value

However, applicants who are part of couples, enjoy a rebate with HSE expecting only 40% of their income and 3.75% of their asset value for a maximum of 3 years. If both are under nursing home care, the contribution is capped at 22.5%. This 3-year cap is applicable on selected assets only like homes, farms, businesses and proceeds from the sale of a home.

The best thing about enrolling under Nursing Home Support Scheme is that after assessing the financial condition of an applicant, the HSE chips in by paying the rest of the amount towards the cost of care. So, one thing is for sure – the State shall bear the burden partially, thereby bringing down the expenses to a reasonable amount.

Wrapping up:

In the end, all we can say is that the expense that goes towards fulfilling long term nursing home care is not fixed but variable. It depends a lot on one’s income and asset value. Get an estimate of yours from Fair Deal Advice – the advisory service provider, responsible for calculating the contributions of applicants under the Fair Deal Nursing Home Scheme.

Changes in Fair Deal Scheme to Have a Positive Impact on the Rental Market

 

Who isn’t aware of the Nursing Home Support Scheme in Ireland! Also renowned as the Fair Deal Scheme, it offers financial support to people finding it challenging to fund nursing home accommodation. So, a beneficiary under the scheme has to pay only a portion of his income and return on assets to enjoy nursing home care. The figures are 80% and 7.5%, respectively.

A prime change is predicted to be introduced after the Dáil summer recess under Stephen Donnelly and Mary Butler - the Ministers of Health and State, respectively. The great news is that the Cabinet has expressed approval in favour of the memorandum. Curious about its outcome? Read on to find out.

What Change in Nursing Home Support Scheme is Likely to Hit Soon?

Presently, nursing home residents are paying a hefty 80% of rental income to the State. This has been discouraging them from renting out their property for quite some time. As a consequence, a long-running housing crisis has developed in the market. The Irish Government is struggling to deal with it. The pressure has intensified over the last few months as more refugees are arriving in the country from war-torn Ukraine.

In aid to resolving this accommodation issue, the Government has plans to reduce this 80pc contribution of rental income to 40pc. The State authorities believe this move will encourage nursing home residents to rent out their homes and make more living space for people looking out for accommodation. In other words, the rental market will revive from the amendment.

What is the Scenario at Present, and How Can the Amendment Bring About a Change?  

At present, 8000 homes are owned by Fair Deal Scheme beneficiaries. In future, 2000 homes can be freed and put up for rent. The remaining have either relatives and spouses of nursing home residents living there or are not suitable for renting out.

Nat O’Connor, the Age Action policy specialist, believes that such an amendment to the Fair Deal Scheme can result in elder abuse. Some relatives may prematurely admit the aged family members to nursing homes to take advantage of the fresh rules on rental income. Therefore, he is looking forward to safeguards in place that will solely engage the owner to decide on renting out his property before leaving for nursing home care.

Final Thoughts:

The rental market is said to benefit a lot from the State’s decision of cutting down rental income contribution to 40pc. Refugees moving from Ukraine to Ireland can quickly get accommodation, and the Government can easily strike a balance between the high demand for residence and the supply. A lot depends on the approval of the Cabinet. So, let’s wait with bated breath until the Dáil summer recess. Till then, seek Fair Deal solutions from the State and if you ever find anything going over your head, hire advisory services. Fair Deal Advice is a good place to look out for information and draw one-to-one consultations.

Applying For The Nursing Home Loan Scheme through A Specified Person

 

 

The nursing home loan plan is a complement to the Fair Deal Scheme given by the Health and Security Executive (HSE), as Ancillary State Support, which allows persons receiving nursing home care to delay the amount of the payment based on their assets (land or property). This implies that the HSE will pay the money to the nursing home on the applicant's behalf for the time being. And the money will be collected after the lifetime of the applicant, by selling the property or a portion of it.

 

Applicants that have reduced decision-making capacity, can apply for the scheme and the loan via a “specified person. Now who can be a specified person and how does the process work? Here is a detailed guideline.

 

The Scenario of Appointing a Specified Person for Applying to the Fair Deal Scheme and Ancillary State Support

 

The Nursing Home Support Scheme in Ireland doesn’t have an age limit, but the nature of the scheme leads to the majority of applicants being senior citizens. It is a consent-oriented policy that requires the applicant to sign the application form and be involved throughout the application process.

 

Now, senior citizens have an increased rate of physical and mental issues, as a result, many applicants have limited capacity to make decisions on their own. Therefore, there has to be a way how incapable individuals could avail the scheme since they are in utmost need of it.

 

In case the person applying for the scheme is incapable of making the decision, it is permissible to appoint another “specified” person to carry on with the procedures, on behalf of the applicant.

Who Needs A Specified Person And Who Will Be Approved To Have One

Specified persons are only approved for applications where the applicant is seriously ill or has reduced mental capacity to carry forward the process on their own.

There are many instances when the applicants are healthy and upright but not so savvy with the official procedures of the Fair Deal Scheme. And struggle to communicate with the HSE officials.

Such applicants often need a good deal of Fair Deal guidance and wish they had someone to help. In that case, a specified person will not be approved. As an alternative you can consult a Nursing Homes Support Scheme Guide, something like Tom Murray offers through his firm, the Fair Deal Advice.

 

Who Can Be A Specified Person

The HSE follows a set of priorities in approving a specified person under their guidelines. The Citizen Information have laid this out under first priority and lesser priority, which goes like the following:

●       First Priority

 The Committee representing a Ward of Court

1. A donee holding an Enduring Power of Attorney (EPA) who is not barred from applying for the Fair Deal Scheme or the Loan Support.
2. Care Representatives appointed by the Circuit Court

●       Lesser priority

The lesser priority usually involves family members, including spouses, children and other relatives that are above the minority age of 18. However, if the candidate is living alone, a well-wisher can get in touch with the Circuit Court to arrange for a “next friend”. Solicitors and legal representatives, registered doctors or medical professionals and social workers all fall under this group.

Remember that the First Priority special person would always have a greater advantage of approval over the lesser priority person. However, the priority may be passed by the committee or care representative to a lesser priority person, in the form of a written consent acting as the specified person.

Process of Getting the Nursing Home Loan Scheme through A Specified Person

With the new amendment launched in February 2022, the 3-year cap now applies to family residences and farmlands. Therefore the requirement for loan support has reduced for many families. But the scheme is still there well and good.

 

The process of getting through the ancillary state support remains the same for specified persons as it does for the applicants.

 

The special person's responsibility would be to obtain a written agreement to have a Charging Order recorded against the applicant's asset.  In case the asset is shared with an immediate family member like a husband, wife, or minor child, then the co-inhabitants must also sign a consent form, for the mortgaging of the property under HSE.

Fair Deal Solutions: What You Need To Know About It?

 

Established in 2009, the fair deal scheme can help families and individuals with nursing homes and financial support care for an extended period of time. The scheme is available to all, which means a person who needs long-term nursing assistance can avail of this scheme. Under this scheme, the applicant needs to pay an amount for the care cost and the state will take care of the rest.

All nursing homes regardless of whether it's voluntary, public, or private, the scheme is valid for all. Also known as the nursing home support scheme, the money that the applicant needs to pay weekly depends on the valuation of assets and income.

How To Apply For It?

There are essentially four steps to apply for the nursing home support scheme. Let’s find out more.

Application Form

First, you need to fill out the application form for fair deal solutions via their official website. The form must be filled out and signed by the individual who wants to apply for this scheme. But if the applicant cannot fill out the application form for themselves, one of his/her family members can do it. However, there are certainly some rules to follow while opting for this procedure.

Care Assessment

After completing the application form for fair deal solutions, the state will contact you for a care need assessment. A medical professional or a nurse will get in touch with the applicant for the following:

·       Your ability to perform daily activities such as washing and dressing

·       The level of independence you currently have

·       Cognitive functioning assessment – language, attention level, learning, and memory.

You will get the result of this assessment.

Financial Assessment

The financial assessment will help you determine the amount you need to pay for nursing home care. However, the amount payable will depend on your total income and assets. For instance, if the total value of your income and asset is low, you have to pay more. But if the total is high, the total payable amount will be low.

The nursing home charges won’t affect the actual payable amount. For example, if the total amount calculated is around €250 and the nursing home charges is €1050 per week, the extra amount will be paid by the state.

Nursing Home Support Loan

You can apply for a nursing home loan. But there are certainly some terms and conditions to follow. If you have a property in Ireland, then only you apply for the loan. This property can anything from business property to barren land and house. The application process for a nursing loan can take several months. Therefore, when you are applying for Fair Deal funding, you should also subsequently apply for the loan. Once your loan is approved, you don’t need to accept the nursing loan. So, if you want to apply, you need to fulfil the application form of fair deal solutions.

How To Apply On Someone Else’s Behalf?

If any person is not in the right condition for applying for the fair deal solutions, someone else can apply on his/her behalf. However, the person must be any of the following:

·       Can be appointed by the Circuit Court

·       Appointed by the Office of Wards of Courts

·       Chosen to represent on the behalf of the applicant

·       Can a partner or spouse

·       A legal representative

·       Certified social worker, medical professional, or nurse

After Receiving The Funds

You can easily opt for reviewing the financial assessment, if you have received Fair Deal funding. In fact, you can also inform the state if there is change in the current circumstances. After your last review, you can again ask for another review in the next 12 months. However, the state is always available for your financial assessment review.

In Final Words

The Fair Deal scheme is one of the best medical schemes available in Ireland. The amount payable is nothing compared to the benefits you will get as an applicant. So, take notes from the above point before you apply to get a solid idea about the medical scheme.

Nursing Home Support Scheme Guide - How To Manage Your Finances Right

 

The amount you pay for nursing home care is determined by your cash and non-cash assets. In the general principle, low-income individuals pay less, but if you have a greater amount of assets, you pay more. Here is more you need to know about managing your finances right.

 

Understanding Assets Are Nursing Home Support Scheme - Fair Deal Scheme

 

Your assets are divided into two categories: cash and non-cash assets. This includes savings, property, home, farm, business shares etc. Also, assets that you have transferred to a successor are included under the financial assessment. Below is a detailed list

●      Cash Assets

 

Cash assets include traditional savings, bank deposits or post offices or credit unions. Income through rented spaces. Shares, stocks, bonds and other financial securities and instruments such as retirement funds.

 

Your cash assets after €36,000 for single individuals. The amount is reduced by 50% for individuals that have a spouse, either husband or wife who has equal rights to the asset, in that case, the first €72,000 is exempted from the financial assessment.

●      Non-Cash Assets

These are assets that neither you nor your spouse can simply convert into cash. Non-cash assets counted under the Fair Deal Scheme include property - both domestic and overseas ones, a house, farm and business.

 

This evaluation does not apply to personal items such as furniture, electronics, appliances, or automobiles. However, mobile homes may be counted as an asset.

 

●      Transferred Assets

The financial evaluation solely considers the applicant's assets and has no bearing on the assets or savings of other family members. The transfer of property, on the other hand, is a fuzzy area, as it involves any assets you've transferred within 5 years of applying for the Scheme.

Note:   It is widely recommended to consult with a reliable Nursing Home Support Scheme Guide to simplify and settle succession oriented halts in the application process. Always consult the guide before you submit your first application.

Applicants are obliged to inform the HSE if they have handed any land, property, or money to another individual within 5 years. And the information must be conveyed along with the first application. Failing to do so in the first attempt can get the authorities suspicious and might even lead to rejection.

What are Deductions Under the Fair Deal Scheme

Deductions are exemptions of your liabilities, taxes and medical expenses that you get with the Nursing Home Support, which include the following:

 

●       Income Tax

●       Other taxes - PRSI, PAYE and Universal Social Charge, Property Taxes

●       Medical Expenses - doctor consultations, prescriptions, diagnosis, medication and life-saving therapies

●       Maintenance of a child, grandchild or any other person who is incapable of mending for themselves and is completely dependent on the applicant

●       Loans, EMIs and other financial obligations

 

These assessments are subject to fluctuation based on the current condition of the applicant. If your financial situation changes it is likely to affect your Nursing Home Support Scheme Cost of Care. The applicant should inform the HSE or the Nursing Home about the changes in their financial posture.

 

The Three-Year Cap

As part of the Fair Deal financial evaluation, applicants have to contribute an annual fee equivalent to 7.5% of the value of all non-cash assets as mentioned above. But this contribution is capped at only 3-years for all the major assets including the

 

●       A House

●       The profits of your home's sale

●       A Farmland

●       A Business

 

Previously, only the principal homes were eligible for the 3-year cap but from February 2022, the facility is extended to farming lands and businesses as well.

Appointing a Nursing Home Support Scheme Guide For Applicants with Reduced Capacity

There are several instances where the applicant is unable to keep up with changes in their financial condition. This is a common occurrence among dementia patients. A Care Representative is designated in this circumstance, who must be the holder of a valid Enduring Power of Attorney. A close family member, as well as a legally designated counsel or guide, can serve as a care representative. As a Ward of Court, the judge in a Circuit Court must make the appointment.