Fair Deal/Nursing Homes Nursing home loan v savings

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learnwell

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In relation to nursing home fees, in particular that portion payable which is based on the value of the home under Fair Deal assessment:
If a person has sufficient savings to pay for the 3 years that the home levy applies rather than availing of the loan which in value increases in line with the Consumer
Price Index does that approach make sense?
Taking account of the risk of steep inflation affecting the amount which eventually must be repaid to Revenue, and the fact that interest rates on savings are currently
very low, and also that by reducing savings the amount levied on savings will reduce over the 3 year period, is it best in these circumstances to forgo the loan?
 
Well, as you have concluded, paying from savings rather than using the Fair Deal nursing home loan option (assuming that it's applicable in the first place - I thought that it was geared towards those with land or other illiquid assets and insufficient liquid assets?) eliminates the unknown with regard to inflation of the amount ultimately payable.
 
learnwell said:
In relation to nursing home fees, in particular that portion payable which is based on the value of the home under Fair Deal assessment:
If a person has sufficient savings to pay for the 3 years that the home levy applies rather than availing of the loan which in value increases in line with the Consumer
Price Index does that approach make sense?
Taking account of the risk of steep inflation affecting the amount which eventually must be repaid to Revenue, and the fact that interest rates on savings are currently
very low, and also that by reducing savings the amount levied on savings will reduce over the 3 year period, is it best in these circumstances to forgo the loan?
Click to expand...
I think so. ALSO probable will be a little more complicated with Revenue looking for 22.5%
 
learnwell said:
It is an option if the fair deal applicant owns their own home, but does not otherwise have sufficient resources to pay that portion.
Click to expand...
That's what I was referring to.
It may not be open to somebody with sufficient liquid assets to pay their own way.
I can't remember the details though.
It's been a few years since I had to look into it.
 
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