Hi All,
My siblings and I are in the situation where we need to examine the Fair Deal scheme and consider if it is (a) applicable to us and (b) feasible.
I would appreciate any feedback.
I found this example on the a previous thread which linked to the FAQs about the Fair Deal scheme:
If it's compared to my family's situation, the figures look like this:
So according to the example, we have to contribute 1134.25 per week to the nursing home.
As the nursing home costs less than that (approx 900 pw.), then the Fair Deal scheme wasn't really intended for these purposes I assume.
BUT, in our situation, can we apply, pay the Savings and Pension contribution each week (192 + 236 = 428), then the Fair Deal loan covers the rest of the cost of the Nursing Home up to the total (€900)??
So the loan would then be 900 - 428 = 472 per week or 24544 per year.
After the death, the loan (which is secured against the house/farm) is to be repaid.
Am I understanding this correctly?
Second question: After the 3rd year, the house and farm are removed from the considerations based on certain criteria which we are fairly sure of meeting.
So, how does this element affect the calculations above?? I feel like I'm wrongly leaving them out but I can't be sure based on everything I've read.
The info on this is confusing to say the least and the more you look into it, the more complex it gets (as always). Finding a solicitor who can give me a proper straightforward answer is not simple either. So I'm looking to the wizards on here to help out.
Thanks,
P.
My siblings and I are in the situation where we need to examine the Fair Deal scheme and consider if it is (a) applicable to us and (b) feasible.
I would appreciate any feedback.
I found this example on the a previous thread which linked to the FAQs about the Fair Deal scheme:
Ms. Murphy, Single, House and Savings Ms. Murphy has an income of €270 per week, savings of €56,000 and a house worth €250,000. She decides to apply for financial support under the Nursing Homes Support Scheme. Under the scheme, she will contribute 80% of her income each week towards the cost of care. This equates to €216 per week (i.e. 80% of €270). She will also make a contribution towards her care costs based on her assets, i.e. her savings and her house. When the asset disregard is applies to Ms. Murphy’s savings, only €20,000 remains to be taken into account (i.e. €56,000 - €36,000 = €20,000). The contribution towards her cost of care based on savings will amount to 7.5% of their value per annum or €28.85 per week (i.e. €20,000 x 7.5% = €1,500/52 = €28.85). The portion of the contribution based on assets, i.e. the house, will amount to 7.5% of its value per annum or €360.58 per week (i.e. €250,000 x 7.5% = €18,750/52 = €360.58). This means that Ms. Murphy must contribute €605.43 per week towards her cost of care (€216 + €28.85 + €360.58). The cost of the nursing home is €1,000 per week. The HSE will pay the balance, i.e. €394.57 per week. However, Ms. Murphy does not have €360.58 per week to pay upfront and does not want to sell her house. She, therefore, applies for and receives the Nursing Home Loan. This means that the HSE will pay the additional €360.58 on top of the €394.57 it is already paying per week and is effectively giving Ms. Murphy a loan of €360.58 every week. The HSE’s weekly contribution is now €755.15 (i.e. €394.57 + €360.58 = €755.15). If Ms. Murphy did not apply for the Nursing Home Loan, she would have to pay the contribution of €360.58 based on her house on a weekly basis during her time in nursing home care. After three years, Ms. Murphy’s house would be discounted from the financial assessment.
If it's compared to my family's situation, the figures look like this:
- Pension 240
- Savings 200000
- House 80000
- Farm 410000
- INCOME (Pension)
80% contribution of income = 192 - SAVINGS
200000 – 36000 (asset disregard) = 164000
7.5% of that = (164000 x 7.5% = 12300/52 = 236.53) - HOUSE
80000 x 7.5% = 6000/52 = 115.38 - FARM
410000 x 7.5% = 30750/52 = 591.34
So according to the example, we have to contribute 1134.25 per week to the nursing home.
As the nursing home costs less than that (approx 900 pw.), then the Fair Deal scheme wasn't really intended for these purposes I assume.
BUT, in our situation, can we apply, pay the Savings and Pension contribution each week (192 + 236 = 428), then the Fair Deal loan covers the rest of the cost of the Nursing Home up to the total (€900)??
So the loan would then be 900 - 428 = 472 per week or 24544 per year.
After the death, the loan (which is secured against the house/farm) is to be repaid.
Am I understanding this correctly?
Second question: After the 3rd year, the house and farm are removed from the considerations based on certain criteria which we are fairly sure of meeting.
So, how does this element affect the calculations above?? I feel like I'm wrongly leaving them out but I can't be sure based on everything I've read.
The info on this is confusing to say the least and the more you look into it, the more complex it gets (as always). Finding a solicitor who can give me a proper straightforward answer is not simple either. So I'm looking to the wizards on here to help out.
Thanks,
P.
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