If you have already been in a nursing home for 3 years when you apply for the scheme, then you do not pay the 7.5% on your principal residence.
What exactly do you mean by this? How does it work. Plenty of people apply and don’t actually use the scheme until a year after the application is first made. What happens in this situation?The 3 year period for PPR commences on application/approval even if the applicant receives no financial assistance, so your fears are justified.
My parent will soon be going into a nursing home, and I have met with a financial advisor and he has advised me not to apply for the fair deal scheme in year 1, for various reasons which make sense and I understand. A question that I forgot to ask, is if we apply for the fair deal scheme after year 1, does my parent pay 7.5% of his primary residence for only 2 years?
Without going into the specifics of the personal issue, the QFA actually told us he has had a few instances of it in the past and has given the same advice,I don't get why you would only do it for one year. There must be more to this.
Here is an exampleIts a lower contribution only because you've already spend it paying privately. Same difference. Nothing wrong with it. I don't see how it's saving anything.
The only why a delay saves something if excludes previously transferred assets. Nothing wrong with that either. That's the system in place.
Can't really offer any advice.
Going by the part from the citizen information quote above, there is no disadvantage to waiting (unless you can think of one then please post it here), and so you might as well wait one year, two years or 3,
I don't get why you would only do it for one year. There must be more to this.
The only way a delay saves something if it excludes previously transferred assets.
You can't pay more than care costs.
But if you have no other assets but they can take up to 80% of income to pay costs.
You only get 40% tax relief if you are paying tax at 40%. I also think you only get the top rate on the portion that you pay at the top rate.What I mean is, if their is money in an ARF would it make sense to draw this down sufficiently to pay the fees (along with any other pension income) before applying for Fair Deal later (if necessary)? I assume that tax relief at 40% would apply.
He can’t just draw down his 200k in ARF and start paying 50k of fees each year and think he’s getting back 20k unless he’s paying 50k in tax
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