Fair deal scheme

collins_m_Lisa

My grandmother has been in a nursing home the past year and signed up to the fair deal scheme. I just have a question on the contribution, particularly the part from her principal private residence. My understanding is that after three years she will no longer have to make the contribution which comes from her home. If my grandmother was to sell her house on the market today would the money she gets from this be then classified as her savings and thus she would be contributing from this?

Also if she held off and didn't sell until after the three years would the money she got then still be classified as savings and she would need to make a contribution from that?

mp22

Moved from Cork county

kittyIE

Hi Has anyone had any dealings with fair deal scheme regarding the nursing home loan? thanks

adrianm1234

Need info also

garbeth

I applied for this last year for my mother. Did not have to do the house loan but but I know of it. We had sold the house 6 years ago so it wasn't part of her assets

If she owns the house then you do not have to sell it to take part in the fair deal scheme. In the event of a sale they will take 5% of the sale price per year that the person is in the nursing home for a maximum of three years.

So if your mother is in the nursing home for 1 year they take 5% of the sale price if she is in for two years 10% and three years 15%. After that 15% is the max they will take. If you take part in the scheme there will be a lean put on the house so when it's sold you will have to repay revenue. If you/her husband is living there you don't have to sell until after their death

If you sell now the asset will still be taken into account. After 5 years they don't take the asset into account when calculating the amount due

The coordinators of the scheme are pretty good at answering questions but feel free to ask any more here and I'll answer if I can

kittyIE

Thanks for the info.....My problem is that mother transfered ownership less than 5 years before I had to place her in home....Fair Deal says that she cant take a loan against house as she does not own it anymore...The house is for my brother...So it wont be sold....They want me to come up with 175 per week as well as her pension.....I cant afford to pay that money per week.......Tried an appeal but denied....Just wondering if anyone has a familiar story Thanks

Voltex

kittyIE wrote: »

Thanks for the info.....My problem is that mother transfered ownership less than 5 years before I had to place her in home....Fair Deal says that she cant take a loan against house as she does not own it anymore...The house is for my brother...So it wont be sold....They want me to come up with 175 per week as well as her pension.....I cant afford to pay that money per week.......Tried an appeal but denied....Just wondering if anyone has a familiar story Thanks

Maybe the option here would be for your brother to take a small mortgage out on the home, he could then make the payments to the nursing home himself €175 p/w x 52 for 3 years which totals €27500. By doing this he could also claim a tax credit for him paying the nursing home fee.

garbeth

It wouldn't necessarily be for threes years though as I'm assuming you'd have to pay this for however long your mother would be in the nursing home for.

The three years only comes in to play when the house is to be used as part of the scheme.

If the house is mortgage free this may be the only way to get the money. You would also get tax relief at your highest rate of tax.

Annahouse3

collins_m_Lisa wrote: »

My grandmother has been in a nursing home the past year and signed up to the fair deal scheme. I just have a question on the contribution, particularly the part from her principal private residence. My understanding is that after three years she will no longer have to make the contribution which comes from her home. If my grandmother was to sell her house on the market today would the money she gets from this be then classified as her savings and thus she would be contributing from this?

Also if she held off and didn't sell until after the three years would the money she got then still be classified as savings and she would need to make a contribution from that?

Hi If she sold house before three years is up the money is considered income and they would take 80% so this is not a wise choice. One three years is up the house is disregard but savings are. I advice you get legal advice or phone your local nursing home support scheme office to ask
Anna