Fair deal and clawback query, who pays clawback?

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Laurafairdeal

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Hi

My father may need nursing home care in the next number of years as he's in his 80s, he has an asset worth about 200K he wants to transfer to me. I was thinking about his long term care options if needed and read about the fair deal and the claw back/look back window of 5 years.

If I'm transferred the asset (200k Euro value) and my Dad needs nursing home care in the future and fair deal scheme assistance, who pays the clawback or how would it work?


Any advice greatly appreciated
 
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Not sure what you mean by clawback here, but if the asset is transferred to you within 5 years of your father participating in the Fair Deal Scheme then it will still be considered part of his means for the purposes of the Fair Deal Scheme financial assessment.
www2.hse.ie

Financial assessment: How much you pay towards care

Find out how how the Fair Deal financial assessment works and how we calculate your payments towards nursing home care.
www2.hse.ie www2.hse.ie
 
Yes so if it's transferred into my name, how do they take it into account? Will they take 7.5% of this asset for 3 years or is it for as long as he may need nursing home support? And who pays it? Would revenue charge me with a bill or my father ?
 
Simplest way to look at it is this.

If your parent disposes if any asset (money or property) and looks for support for nursing home fees within five years, the assessment will be done on the assumption that they still have the asset.

And they won't be able to avail of the nursing home loan if there's no property to register a charge against.
 
Heres a simple generic explanation.

They will do an assessment of his
means and decide how much he can afford to pay each week towards his nursing home bill . If he has given away his money and therefore can’t afford to pay the bill , the family will have to decide how to pay the bill or take him out of the nursing home .
 
Laurafairdeal said:
Yes so if it's transferred into my name, how do they take it into account? Will they take 7.5% of this asset for 3 years or is it for as long as he may need nursing home support? And who pays it? Would revenue charge me with a bill or my father ?
Click to expand...

The answer to the first question is it depends on what the asset is As for the 2nd question, Fairdeal will calculate how much they will provide, that includes any clawback implications, the difference between that and the price of the nursing home will be paid by someone, you, your father, whoever, normally via direct debit.
 
Revenue have nothing to do with the administration of nursing home fees while the person is in the nursing home . The nursing home will expect a standing order for the fees . They won’t care who organises it.

If the loan is required, Revenue will arrange payment from the estate after the person has passed away .
 
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