Fair deal scheme or nursing home loan

Masala

So.... (and this sounds cruel!!) - should we advise our parents to transfer their home house to their kids now while they are still 'young enough' ???

Most parents would be leaving the home house split among the children. So- why not do it sooner rather than later.!!!

What is the problems with the kids receiving the home early??? There will be no Capital Aquisition Tax etc to be paid etc if value is below the limit etc...

This means that the the Fair Deal Scheme will only cost €188 (75% of the OAP) if a parent has to go into a Nursing Home.....and the HSE can stuff themselves !!!

I dis say it sounds 'cruel' to be even thinking of same.

Ghekko

#29 Exactly. Once she dies (hopefully not for a long time) she will have paid the nursing home up to date of death and that's that. That's assuming she doesn't go with the HSE loan scheme. We paid a months 'deposit' for dad when he moved in. He died on day 3 of the month and we had paid that week in advance so we got the deposit and the 4 overpaid days back. The HSE do look for a statement of assets after death though - whatever is sent to probate - its most likely to ensure there wasn't a secret stash that wasn't disclosed on the fair deal application.

It's unfortunate that the scheme doesn't stretch to home care. The services available at present are abysmal. Hopefully this will change in the coming years. Private care costs a fortune.

AMCCORK

It’s always an option if your parents are open to that discussion. But who is to say they would ever need nursing home care?

AMCCORK

It’s always an option if your parents are open to that discussion. But who is to say they would ever need nursing home care?

MPFGLB

I had a look at home care costs to the Irish economy

With say 5% of old age persons requireing residential care (current estimates) and live in care homes for 2.4 years (on average) that is a cost of £126,000 per person for the full duration if average costs are 1,000 a week

Now given the 22.5% of assests payments and further savings and pension contributions (for the 2.4 years average duration) I estimate the state ends up paying about 67K of that pot ...which is 2.1 billion for all over 65 year olds in residential/nursing care (not including stay at home care costs) for their total duration ...or 0.9 billion a year

As the population over 65 is set to treble up to 2050 that is a bill of 2.7 billion a year ....mighty high costs
If anything care will get more expensive
And then there is the care in apersons home which costs the state alot and the old age pension and health costs which are predominately for the elderly ......a big burden on the young
The HSE is not a seperate entity from the state ..its fees are saving the tax payer...


Its a time bomb

Irish government should have thought about a care insurance for elderly say paid into by over 40 year olds several years ago

august12

MPFGLB wrote:

I am sorry but what is that post about ? ...not sure why it is a headache for someone if the time since the sign over period is greater than 5 years as your post suggests?

I wasn't replying to your post, and I didn't say it was a headache if transfer greater than 5 years,

George04

Hi I was just wondering has anyone been made a care representative, how long does it take?

ralc

Anybody got any advice on Paying the balance real time V's the Nursing Home Loan. Our situation is both parents are alive, father must go into a home, the other will live a good bit longer before mother will need a home and there isn't much interest keeping the family home after both will have passed.
None of us want the home and I think the mother would rather have the extra cash to hand while she is alive. The HSE coordinator was advising us away from the loan but I don't see the reasons if were happy to sell the home after they both go or if one of us wants it is willing to pay the value of the home and give the revenue what their owed.



Also I'm a bit confused about the literature paragraph below. Would the 22.5% asset value be due for him (3 x 7.5%) followed by a further 22.5% for the mother when she has to go into a home, or what does this 11.25% mean?

In the case of a couple, the contribution based on the principal residence will be
capped at 11.25% (7.5% if the application was made prior to the 25th July
2013) where one member of the couple remains in the home while the other
enters long term nursing home care, i.e. the three year cap applies. Where a
person opts for the nursing home loan in respect of the principal residence, their
spouse or partner can also apply to have the repayment of the loan deferred for
their lifetime (see section 9).

adam88

Henry Ford III wrote: »

We've been through this process within the last 12 months and here's how it works:-

1/. HSE pay the nursing home but do an assessment on the applicant to determine their contribution.

2/. They take 80% of their assessed income (pension).

3/. They take 7.5% of their cash assets yearly. The first €36k is ignored.

4/. They take 7.5% of the valuation of the home to a maximum of 3 years. This element can be advanced as a loan with a charge being attached over the property.

In the op's example there is no reason why the family home cannot be retained.

But surely this is to pay nursing home fees. If your a high worth individual with say for eg a million in cash in the bank. Surely they’re not going to take 75k plus 80percent of a possibly very large pension

Masala

When they say 80% of the pension.... is it all pensions or just the State pension??? I am killing my self trying to build up my private pension at my age now so as to have a decent retirement.... I am hoping it's not going to be handed over to a nursing home should I end up in one!!

Henry Ford III

Masala wrote: »

When they say 80% of the pension.... is it all pensions or just the State pension??? I am killing my self trying to build up my private pension at my age now so as to have a decent retirement.... I am hoping it's not going to be handed over to a nursing home should I end up in one!!

It's all income I believe.

If you have a huge pension and cash assets you won't need Fair Deal.

adam88

Henry Ford III wrote: »

It's all income I believe.

If you have a huge pension and cash assets you won't need Fair Deal.

It’s wrong tho. You worked long enough and paid enough tax so that you could enjoy your retirement and then they just come and take it off you again.

Henry Ford III

Nursing homes are pretty expensive. The country can't afford to subsidize them totally.