Brendan, can you answer a related question about the operation of FD, specifically the optional Ancillary Support.
The example is - a person may enter a nursing in next few months. Relevant approx figures are - Weekly fee 1280. 80% of assessed income is 400 pw. Assets will be assessed at 600 p.w. so we will pay 1000 p.w or 400 (pension) and defer the 600 under the ancillary loan.
If we don't use the ancillary loan and I (he child) pay this 600 on an ongoing basis, I get 40% relief. Here's the question. If I avail of the the loan and let's say she survives one year, the loan is 31,200. What figure gets repaid from the estate - 31,200 or 60% of 31,200 i.e. does the estate get tax relief? or is it more tax-efficient to not avail of the loan?
The example is - a person may enter a nursing in next few months. Relevant approx figures are - Weekly fee 1280. 80% of assessed income is 400 pw. Assets will be assessed at 600 p.w. so we will pay 1000 p.w or 400 (pension) and defer the 600 under the ancillary loan.
If we don't use the ancillary loan and I (he child) pay this 600 on an ongoing basis, I get 40% relief. Here's the question. If I avail of the the loan and let's say she survives one year, the loan is 31,200. What figure gets repaid from the estate - 31,200 or 60% of 31,200 i.e. does the estate get tax relief? or is it more tax-efficient to not avail of the loan?