Fair Deal/Nursing Homes Fair Deal assessable income

Hi all, i am about to embark on this process and am concerned at the level of extra costs in nursing homes. Am I correct in saying that my relative's savings are only used in fair deal scheme from 36k on? As in, they will have 36k untouched by the scheme to meet costs until it runs out?
 
The savings will be assessed @ 7.5%, if your relative is single, the first €36K will be disregarded in the assesment.

If there was €50K in savings, he/she would only be assessed on €14K, which would work out at €20 weekly.

For those who have savings above the €36K threshold, it is usually beneficial to get reassessed every year. There are many out there paying 7.5% on savings they no longer have.
 
I have just completed an application for fair deal and its straight forward. All cash under €36,000 is not touched, 80% of income (pension) is taken and 7.5% of assets including personal home per annum. No issue about the house as long as its not rented out and this 7.5% apply's only for 3 years maximum.
 
john luc said:
I have just completed an application for fair deal and its straight forward. All cash under €36,000 is not touched, 80% of income (pension) is taken and 7.5% of assets including personal home per annum. No issue about the house as long as its not rented out and this 7.5% apply's only for 3 years maximum.
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Thanks for the reply, that's very comforting
 
Another question on this. Is it better to sell the persons home or keep it vacant? I know theres the 3 year cap but shes 96 so not a given shes going to live 3 years in a Nursing Home. Theres no children to to inherit either.
 
I suppose we really need to work out the financial side of it in details. She has a place in a private home at a cost of €950 weekly, they were the ones that had a place soonest. If If iits a case that the Fair deal is no benefit then its perhaps better too sell it and not to worry about maintenance.
 
Some things to bear in mind;

The family home will be disregarded from the financial assessment after 3 years. If you were to sell the house the proceeds would be treated as cash and assessed indefinitely.

You can apply for Fair Deal at any time. If it suited your circumstances and you had the funds, you could pay privately for 3 years and then go for Fair Deal. The house would be disregarded from the financial assessment at that time. Any savings would also be substantially reduced and you would be assessed accordingly.

We had a few houses empty for several years as the owners were in nursing homes under Fair Deal. It cost us roughly €4k annually to keep a house empty. It was in our cases far more beneficial to pay this amount rather than selling and being assessed indefinitely @ 7.5% on the house sale proceeds.

Crunch the numbers.
 
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