Fair Deal/Nursing Homes Fair Deal help

[Mollymoo4]

Hi,
I have some questions about the fair deal process in Ireland.

My parents both in their 70's own a house valued at approx 200,000. They have about 35,000 in savings.

If ONE of them were to go into a nursing home I believe they would pay 3.5% of house value per year for first 3 years.

If the sold the house whilst in the nursing home they would pay 3.75% of house price for first 3 years also.

What are the implications of signing over there house to my sister within 5 years of requiring nursing home support. I know if it it is OVER 5 years it is not taken into account.

Just worried that if they sign the house over to her and something were to happen in the next 5 years, would they have to pay it as an asset for every year they were in the home.

Thanks.

 

[ClubMan]

What are the implications of signing over there house to my sister within 5 years of requiring nursing home support.

It'll still be taken into account for the financial assessment.

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

Transferred Assets​

The financial assessment includes any assets you have transferred:

• in the 5 years before the date of your first application
• on or after the date of your first application

If you have given any land, property or money to another person in the last 5 years, you will need to tell us. You will also need to tell us if you transfer any property, money or land after you make an application.

 

[Alongtime]

Hi just trying to find out about the Fair Deal as we are now in a position where we have to put it in place as my father in law has dementia and we have been told by the hospital that he needs long term care. He is 86 and his wife is 85 who is still living at home on her own. While filling out the forms for the Fair Deal last night one of the family members had a query and this is it, Just say that he only lasts one year and the bill is manageable for the family to pay off, are we tied in with the Fair Deal or could we pay the revenue and save the sale of the house.
We feel as the wife is still alive she will only be a lodger in her own home until he/she dies, which is very unfair and very stressful for her now.
Like is there a get out clause.

 

[ClubMan]

Hi just trying to find out about the Fair Deal as we are now in a position where we have to put it in place as my father in law has dementia and we have been told by the hospital that he needs long term care. He is 86 and his wife is 85 who is still living at home on her own. While filling out the forms for the Fair Deal last night one of the family members had a query and this is it, Just say that he only lasts one year and the bill is manageable for the family to pay off, are we tied in with the Fair Deal or could we pay the revenue and save the sale of the house.
We feel as the wife is still alive she will only be a lodger in her own home until he/she dies, which is very unfair and very stressful for her now.
Like is there a get out clause.

What exactly are you referring to here? The basic Fair Deal scheme or the optional Nursing Home Loan component?

Fair Deal Scheme

People who move into registered nursing homes may receive financial support from the HSE under the Nursing Homes Support Scheme, also known as the Fair Deal scheme.

www.citizensinformation.ie

I don't really understand your reference to the sale of the house - nothing in the Fair Deal scheme necessarily requires the sale of the property.

 

[HollyBud]

you only pay for the care he gets when he is there so if he lasts one year you only pay for one year.
If you take out the interest free load, yes you can pay that off after one year with revenue.

 

[Slim]

The amount of the contribution to the cost of nursing home care would, normally, be 80% of 50% of the household income plus 7.5% of 50% of the value of the home( first 3 years only) plus 7.5% of 50% of any other assets( first 36/72k disregarded). All capped at the actual cost of the nursing home.

If your family opts to pay, directly, the full cost of the nursing home, the payer can claim tax relief at their marginal rate. It's a risk that, happily, he may live for several years v paying as you go.

 

[Des Pondent]

Just say that he only lasts one year and the bill is manageable for the family to pay off, are we tied in with the Fair Deal or could we pay the revenue and save the sale of the house.
We feel as the wife is still alive she will only be a lodger in her own home until he/she dies, which is very unfair and very stressful for her now.
Like is there a get out clause.

When your father in laws dies, the loan if availed of can be but does not have to be paid back at that time.

Your mother in law can live in the house for her lifetime, only when she dies and the house is sold does the loan become due.

See Deferring repayment of the nursing home loan on page 28 of the application form; https://assets.hse.ie/media/documen..._Application_form_and_support_information.pdf

 

[thedaddyman]

Your first step is to actually complete the forms and get them in and understand what contribution is expected from you as part of this. Until then, you won't know if you need to avail of the loan element or not.

If you have to avail of the loan, you have approx. 12 months to pay it back to Revenue from the date of death. There can be options to extend/defer and HSE decide on that, not Revenue.