# Fair deal scheme and renting house



## richardf (9 Jan 2014)

Hi there, we are looking into the fair deal scheme for our father.  He is on a disability pension and has no other income besides that.  We are just wondering what to do with the family home.  I am aware that up to 22% of the house would have to be given to the govt upon it's sale after my fathers passing.  However, we don't want the house to just stay idle all that time as it will just deteriorate but we also don't want to go to the trouble of renting it out if the rent will just be given over to the govt.  We don't want to sell it now as this would break our father's heart.  Is it the case that the rent would be taken by the govt?  Has anyone any suggestions?
Thanks


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## Booter (10 Jan 2014)

Richard, 

Under the Fair Deal scheme, the assessment of the amount eventually due from your Father's estate is made at the point of his entering the scheme (ie now), and this amount is frozen. If your Father wins the lottery the day after, the assessment would not change and he would not owe one more penny. 

For instance if your Father's house and other assets are assessed, now, at €100k, then the final amount to be paid will be whatever percentage is currently applicable (22%?), so €22k. Nothing can change that, unless your Father passes away inside 3 years, in which case the amount due would be reduced pro-rata.


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## richardf (10 Jan 2014)

Thanks so much for your reply.  That is good to know, so therefore we could rent it after the assessment, does this mean that the house is valued now and that valuation is used as well even if it makes more when eventually sold?
Thanks for help


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## Sue Ellen (10 Jan 2014)

richardf said:


> I am aware that up to 22% of the house would have to be given to the govt upon it's sale after my fathers passing.



Most people would appear to opt for the State Support option these days rather than taking out the loan on the house.


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## STEINER (10 Jan 2014)

Sue Ellen said:


> Most people would appear to opt for the State Support option these days rather than taking out the loan on the house.



A relative of mine does this.  It is simple and hassle-free, much easier and with no emotional issues for relative re loan on house.


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## twofor1 (10 Jan 2014)

richardf said:


> That is good to know, so therefore we could rent it after the assessment......



If the house is rented, the rent will be considered income and 80% will go towards his care.

If the house is rented after his financial assessment, you are obliged to notify them, you will then be reassessed to take into account the rental income.


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## twofor1 (10 Jan 2014)

Sue Ellen said:


> Most people would appear to opt for the State Support option these days rather than taking out the loan on the house.



If you can afford to fund 7.5% of the value of your home for three years, then I think this is the better option, rather than applying for the Nursing Home Loan.

Your application will also be simpler and approval far quicker.

But for many, particularly those who have a valuable home but little savings, this is not possible.

If a single person owns a house worth €300K, 7.5% is €22,500 annually or €432 weekly, which would have to be paid for 3 years. This would be in addition to the 80% of income which is indefinite.

Even a modest home worth €100K would incur an additional weekly charge of €144 for three years.


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## thesimpsons (12 Jan 2014)

if he has savings in certs or bonds, the 80% of income is also charged on interest earned.


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## twofor1 (13 Jan 2014)

And the savings in certs, bonds or whatever would be considered assets and as such your contribution would also increase by 7.5% of their value, for as long as the person is in the nursing home. (The first €36K, per person, of your assets will be disregarded)


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## browtal (13 Jan 2014)

It is strange the attitude that people have towards paying what they can afford.
Dont forget theThe government is you and I.  

We pay all the bills for the 'government' through our taxes, unfortunately we have to pay the politicians too and their pensions.

What is wrong with paying some of the rent from the home of your father?
It seems most people want everything free - or paid by the government!
How are we to pay for the care of our Old People in the future.  If you are lucky you will be old some day, would you expect to be cared for.

If you pay €22464 out of the €100,000 you will still have €77536 left. We should see these payments as fair to care for our Older Parents.  One way or another the tax payer will have to pay. Browtal


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