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.

How Has Fair Deal Advice Proven Itself to be a Boon for Couples?

 

Fair Deal Nursing Home Scheme is indeed fair. All applicants in dire need of nursing home care, including those worried about the sustainability of their farm businesses, can avail its financial benefits. There is no distinction on age grounds. One such group, enjoying the payment support offered by the Health Service Executive (HSE) are couples. If you are a part of a couple applying for the scheme through Fair Deal Advice or any other advisory body, spare a few minutes to check out the scheme benefits in store for you.

Fair Deal Solutions for Irish Couples

While applying for the scheme, every applicant has to follow four steps – filling the form, assessment of care needs and financial condition, and the Nursing Home Loan Scheme. Although the final one is optional, the leniency towards payment in all phases is worthy of appreciation. Let’s tell you how in the upcoming sections. Keep scrolling to come across them.

One of the most amazing things about the Fair Deal Scheme is that it considers same-sex unmarried couples as ‘couples’, making the system more inclusive. The only condition is for them to stay together for a minimum of three years to avail the scheme benefits.

When contributing towards the nursing homes charges, the HSE demands only 40% of their income and 3.75% of their aggregate asset value per year. Both are half of what an individual who is not part of a couple pays to enjoy the benefits.

The three-year cap benefitting farmers and business owners also prove advantageous for couples. The 3.75% contribution that we discussed just now is payable for a maximum of 3 years. This indicates that if you are a part of a couple, you will contribute 11.25% of your property value towards nursing home care expenses.

The HSE has even tailored the Nursing Home Loan Scheme to support couples. While applying for it, both have to sign on the application form. HSE allows partners suffering from a reduced capacity to take the assistance of a care representative or Ward of Court or a holder of a power of attorney to act on their behalf. One of the partners can also apply to have the repayment deferred for their lifetime.

Lastly, couples enjoy financial safeguards under the Fair Deal Scheme. HSE leaves the spouse or partner living at home with 50% of their overall income or a chunk of the State Pension, whichever is sufficient for their survival.

Explore More Such Benefits of the Scheme at Fair Deal Advice!

Fair Deal Scheme has practically eliminated the financial hurdles to meet the nursing home expenses for all Irish citizens. Of them, couples are one of the beneficiaries. However, understanding the terms and conditions attached to the scheme can be challenging for a few. Fortunately, Fair Deal Advice, an advisory service provider, simplifies the process by ensuring timely grant of nursing home support to applicants, including couples.

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.