Fair Deal/Nursing Homes Help with Fair Deal interest calculations..

[nad]

Short long story ..A neighbour with low asset value is going into long term care. So if the weekly patient contribution is €177 and the loan option is availed of at an interest of 0.0219% per day..how much is paid in interest for each of the 1st 10 YEARs..any help would be much appreciated.....

 

[Sue Ellen]

Is the Fair Deal calculator of any help http://myfairdeal.ie/?page_id=224

I'm probably totally wrong but I thought the 3 year cap would kick in? Some info here on the Revenue side of things.

Perhaps the Key Post here will give further advice.

Three-year cap​

A person will contribute 7.5% of the value of assets each year towards the cost of your care.

The main property where you live will only be included in the financial assessment for 3 years while in care. This is known as the 22.5% or 'three-year cap'.

After 3 years you will not pay anymore based on the value of your home. This will apply even if you are still getting long-term nursing home care.

The three-year cap applies whether you choose to take out a nursing home loan or not.

 

[twofor1]

So if the weekly patient contribution is €177 and the loan option is availed of at an interest of 0.0219% per day..how much is paid in interest........

The weekly patient contribution is not relevant, that amount must be paid weekly / monthly.

The loan relates to the assessed contribution based on the family home. If the loan is availed of, there usually will be no interest payable.

The only time interest will apply is if the loan is not repaid within the specified time frame after the person dies or within 6 months after the house is sold if the person is still living.

 

[Marsupial]

More details here: https://theprobatehub.ie/2020/11/12/interest-on-payment-of-fair-deal-charges-in-estates/

 

[nad]

Thanks for thet replies so far guys.

I can understand the situation when the house is empty after death of the wife but when a spouse is still living in the property after her death when does the interest rate kick in or property need to be sold by.

 

[twofor1]

The remaining spouse can apply for a deferral. Once granted they can remain in the home until their death. The loan will then become payable, again interest free if repaid within 12 months of the spouse's death, or sooner if the house is sold while still living.

See Deferring Repayment here;

https://www2.hse.ie/services/fair-deal-scheme/nursing-home-loan.html#Deferring repayment of the nursing home loan