Health Insurance Fairdeal question

[Jumpingjacks]

We are in the process of selling my mother's house while she is in a nursing home .We went through the fairdeal process and everything is in place . We are being forced to sell the home , which is empty , to satisfy a demand letter from a life loan company who are demanding payment of a loan advanced to my mother over 10 years ago now , as she is now in full time nursing home care and this is part of their contract with my mum.We have engaged an auctioneer and the house has a few solid bids on it. We have only found out that if we sell the house before my mother passes ( through my brother who has power of attorney) the financial implications could be dire as the calculation of contributions changes, we thought we were liable for 7.5% of the house value upto a max 3 years , so 22.5% in total . She had no other assets or deposits and the house was valued in 2014 at 350k it would sell now for circa 500k
Does anyone have experience with this or know how the proceeds would be dealt with if selling before my mother passes.
Thanks

 

[Slim]

Most likely any proceeds will be levied at 7.5% indefinitely, less the life loan and the €36k exemption. In other words, the 3 year cap on PPR will no longer apply.

 

[AlbacoreA]

I would seem to make more sense to pay off the loan. Inheritance tax, cgt and the 22.5% should be factored.

 

[Feemar5]

Do not sell as you will have to pay more nursing home fees - f you sell an asset, such as your home, after your first assessment the proceeds of the sale become a cash asset. The three-year cap will no longer apply. You will need to pay a contribution of 7.5% based on this cash asset. Depending on how much the loan is it may make more sense to pay that off.