Fair Deal/Nursing Homes Nursing Home Loan Repayment

[Deauville]

Hi,

In a case where a widowed person dies when in the Fair Deal Scheme and a Nursing Home Loan was availed of and will become due in full.,

Is it possible for executor to repay the loan from the deceased persons liquid assets rather than selling the home ?

Or is it possible to repay the loan from the 'accountable persons' assets in order to avoid selling the home ?

The family would like to retain the home in Ireland as long as possible (about 1 year from the persons passing).

 

[Des Pondent]

Or is it possible to repay the loan from the 'accountable persons' assets in order to avoid selling the home ?

The family would like to retain the home in Ireland as long as possible (about 1 year from the persons passing).

My mother had a fair deal loan that was to be repaid from the house sale after her death. Her will left everything equally between her 3 children.

Probate and house sale was delayed and would not be finalised for probably 6 months after the 1 year that is allowed by fair deal for interest free repayment after death. After this time revenue interest rates apply from the date of death. One sibling had the cash to repay the fair deal loan, the advice from solicitor handling probate and house sale was;

Solicitor draws up a simple agreement to be signed by all saying €xxx is a loan from sibling 1 to be repaid from house sale proceeds before any distribution happens.
Sibling 1 then lodges the funds to solicitors account, who then pays the fair deal loan to revenue.
When the house is sold solicitor refunds sibling 1, deducts solicitors fees etc and distributes balance equally between the 3 siblings.

You could do similar and also not incur any punitive revenue interest. All went as planned for us.

 

[Deauville]

My mother had a fair deal loan that was to be repaid from the house sale after her death. Her will left everything equally between her 3 children.

Probate and house sale was delayed and would not be finalised for probably 6 months after the 1 year that is allowed by fair deal for interest free repayment after death. After this time revenue interest rates apply from the date of death. One sibling had the cash to repay the fair deal loan, the advice from solicitor handling probate and house sale was;

Solicitor draws up a simple agreement to be signed by all saying €xxx is a loan from sibling 1 to be repaid from house sale proceeds before any distribution happens.
Sibling 1 then lodges the funds to solicitors account, who then pays the fair deal loan to revenue.
When the house is sold solicitor refunds sibling 1, deducts solicitors fees etc and distributes balance equally between the 3 siblings.

You could do similar and also not incur any punitive revenue interest. All went as planned for us.

Thanks for that information.
Very helpful and much appreciated.

 

[Zobeda]

I acted as executor in similar circumstances to the above, except I was granted probate as a personal applicant. Proceeds of estate, including sale of house were to be distributed equally amongst siblings.

When probate was granted I used funds on hand belonging to the estate (a CU account balance) to pay the loan, before the house sale was finalised.

I didn't need to involve a Solicitor except to handle the house sale on behalf of the estate.

 

[Deauville]

I acted as executor in similar circumstances to the above, except I was granted probate as a personal applicant. Proceeds of estate, including sale of house were to be distributed equally amongst siblings.

When probate was granted I used funds on hand belonging to the estate (a CU account balance) to pay the loan, before the house sale was finalised.

I didn't need to involve a Solicitor except to handle the house sale on behalf of the estate.

Thank you. Very Helpful.

 

[Marsupial]

The Fair Deal loan is collected on the HSE's behalf by Revenue who don't really seem to mind where the money comes from!

Following her father's death, my missus repaid the loan online, using her own savings (although her mother was the "accountable person"), through her "myAccount" - she was required to input her late father's PPSN, the HSE Client ID Number and the amount being repaid.

 

[Itgirl73]

I am the executor of a widower person availing of Fair deal when they died. I am a connected person (many more than the 3 years required to be living in the home & no other property) but HSE refusing to defer the loan & referred case to revenue. I have not started probate as I am stuck with a huge bill to repay loan & issue what was decreed in the will as well as parents worked on the connected person terms that the loan could be deferred so left funds to siblings. - how long does probate take? Has anyone else being affected by issues with connected persons agreement not being kept when the nursing home resident died? I am now facing nursing home bill plus financial payments to siblings from original will? I am at my wits end now with the Financial strain.