Fair deal and gifting

[HouseQ]

Hi Guys,

In relation to the fair deal scheme, i understand that your PPR is taken into account for 3 years.
What happens if after these 3 years pass, you wish to gift what is/was your PPR to a family member, does the fair deal seen this as transfer of assets (even though it was excluded from calculations going forward). I understand that if the property was sold that the proceeds would then come into play for contributions, but not sure what happens on a gift?

Appreciate any help.

 

[Thirsty]

I believe if you 'gift' the PPR it will be treated as a sale.

from HSE

If you sell your home, farm or business before or after the 'three-year' cap has expired​

If you sell an asset that was subject to the 'three-year' cap at any stage, the money of the sale becomes assessable as part of cash assets.

 

[HouseQ]

So if someone is under fair deal, there is nothing they can do with the home really in terms of passing it on while they are alive, as the HSE will view it as a sale.

If in terms of renting out the house, i understand 80% of income would be used, but does the PPR then covert to an investment property as such - and hence 7.5% of value is used each year in calcs, or does it stay as the PPR (although rented out)?

 

[Thirsty]

Not an expert in Fair Deal.

On the basis that the PPR is the only property the claimant owns, it would be my understanding that the three year 7.5% cap is the same if the property is rented out; but the net income from the rental is used towards assessment of means for so long as the claimant is in residential care.