The Fair Deal Scheme - Who Is The Ideal Candidate

The new, revised Nursing Home Support Scheme Act 2009, better known as Fair Deal, has vastly changed the way individuals pay for their long term residential or nursing home care. The scheme grants individuals with necessary financial support from the State Government, in exchange for a partial contribution towards their long term cost of care. The amount of the contribution is 80% of income/savings and 7.5% of non-cash assets like home, land and/or farmland. There are certain tax exemptions, such as Income Tax, and other government taxes. Moreover, the first €36,000 worth of either savings or cost of assets, is exempted from the contribution cost. This goes up to €72,000 in case the applying individual has a family member to care for, that’ can be a spouse, a child, or any other immediate family member. The cost towards the asset, that is the family home or farm, can be deferred with the Nursing Home Loan or Ancillary Support Scheme, which entails that  the contribution towards the assets will be stopped after 3 years, or with due fulfilment of the total 22.5% (7.5 x 3); often referred as the “three-year-cap”. This doesn't mean that you don’t have to pay, but it means that the HSE will usurp your asset after your death. If you have a family member residing in the home, or you have a farmland that.

What If The 80% Plus 7.5% Is More Than The Actual Nursing Home Cost Of Care?  

The Fair Deal Scheme ensures that the persons will not pay more than their Nursing Home Bill, and but given the structure of the scheme, it can be apparently more expensive for some than paying the cost of care on their own.

There are further questions, that fog the overall utility of the scheme, as in what is to be done, when a person does have a home, which is counted as an “asset” but don’t have enough cost to contribute towards the 7.5% cost of care, since you cannot literally en cash the home. So individuals have no choice than to mortgage or sell their property.

Who Is The Best Suited For The Fair Deal Scheme:

The scheme works differently for different people. On an honest note, The Fair Deal Scheme can be a losing game for those that have a large amount of assets and savings. Because you will be end up giving it all up, and can pay more than your the nursing home care for the rest of your life. The point is to calculate before hand. This most beneficial for individuals that cannot meet the residential care expenses on their own, do not have an asset. The point of this scheme is that you lose more the more you have.

Determining The Best Solutions:

It is a wise decision to plan beforehand, for a substantial retirement plan, that will benefit you and your family. The idea is to calculate the finances you will need to spend on your nursing home support and the inheritances that you wish to gift your children.

The Fair Deal Advice is lead by a team of financial advisors in Ireland that specifically provide assistance and advisory in terms of making the right decision  about the Fair Deal Scheme and it’s a good decision to consult them before you make a decision.