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.

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

 

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

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

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

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

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

Final Thoughts:

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

 

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

 

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

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

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

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

Ø  Appropriate care at one’s chosen nursing home.

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

Ø  Laundry service, bed and board.

Ø  Medical care, including medication and GP charges.

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

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

Final Thoughts:

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