Fair deal and gifting

[HouseQ]

Hi Guys,

In relation to the fair deal scheme, i understand that your PPR is taken into account for 3 years.
What happens if after these 3 years pass, you wish to gift what is/was your PPR to a family member, does the fair deal seen this as transfer of assets (even though it was excluded from calculations going forward). I understand that if the property was sold that the proceeds would then come into play for contributions, but not sure what happens on a gift?

Appreciate any help.

 

[Thirsty]

I believe if you 'gift' the PPR it will be treated as a sale.

from HSE

If you sell your home, farm or business before or after the 'three-year' cap has expired​

If you sell an asset that was subject to the 'three-year' cap at any stage, the money of the sale becomes assessable as part of cash assets.

 

[HouseQ]

So if someone is under fair deal, there is nothing they can do with the home really in terms of passing it on while they are alive, as the HSE will view it as a sale.

If in terms of renting out the house, i understand 80% of income would be used, but does the PPR then covert to an investment property as such - and hence 7.5% of value is used each year in calcs, or does it stay as the PPR (although rented out)?

 

[Thirsty]

Not an expert in Fair Deal.

On the basis that the PPR is the only property the claimant owns, it would be my understanding that the three year 7.5% cap is the same if the property is rented out; but the net income from the rental is used towards assessment of means for so long as the claimant is in residential care.

 

[KOW]

Now 2026. Have the rules regarding the sale of house changed under fair deal scheme regarding principal residence.
My father is going into a nursing home this week. He wishes the house to be sold and the 3 years @7.5% paid over to the HSE.
He wants me to sell his house and distribute funds as stated in his will.
My father spent a number of years looking after his own mothers house when she was under fair deal.
Can the funds be distributed or are they liable for a charge of 7.5% until the day he dies.

 

[Des Pondent]

Can the funds be distributed or are they liable for a charge of 7.5% until the day he dies.

It was the case a few years ago that if you sold the house while in care under FD, the proceeds were assessed @ 7.5% indefinitely.

My understanding now is once you are already in care under FD, you can then sell and the net proceeds will also qualify for the 3 year cap.

The nursing home will still have to be paid the 7.5% assessed on the house for the first 3 years in care, so I don’t know about distributing all the funds, maybe that’s why they say you need to contact them if you sell.

3 - year cap
Some assets are only included in the financial assessment for the first 3 years you are in care. This is known as the ‘3-year cap'. It means that you pay a 7.5% contribution based on the value of certain assets for up to 3 years.

These assets can include:

• Your home
• The proceeds of the sale of your home
• Your farm or business

Your home​

Your home will be removed from your financial assessment after you have been in care for 3 years. You do not need to do anything.
If you sell your home while you are in care, the net proceeds of sale will also qualify for the 3-year cap. You need to contact your local nursing homes support scheme office if you sell your home.

https://www.citizensinformation.ie/...h-services-for-older-people/fair-deal-scheme/

 

[Freelance]

Now 2026. Have the rules regarding the sale of house changed under fair deal scheme regarding principal residence.

Yes. Previously the value of the house was included in the Fair Deal computation for 3 years and excluded thereafter. Savings were not capped and remained liable at 7.5% indefinitely. If the house were sold, the proceeds were treated as savings and were “uncapped” and liable at 7.5% indefinitely. It was a stupid situation as it was a disincentive to sale and meant that vacant houses remained unoccupied indefinitely, until the owner died. Now the proceeds of the sale are capped in the same way that the value of the house is, and are included in the computation for the first three years of the far deal contract only.

He wants me to sell his house and distribute funds as stated in his will.
Can the funds be distributed or are they liable for a charge of 7.5% until the day he dies.

I am in a very similar position, but a few months ahead of you. My mother moved into a nursing home earlier this year and the house went on the market shortly afterwards on her instructions. I expect the sale to close and to be in funds in the next couple of weeks. These will be spit upon receipt, portion to be retained in her name to pay for her expenses (mainly nursing home charges) and the balance to be distributed in accordance with her instructions (and following the distribution set out in her will). We expect the value of the house / proceeds to be included in the fair deal computation for 2026, 2027 and 2028 and excluded thereafter. Nothing that I can see precludes distribution of the funds, but distributing them does not exclude them from the Fair deal computation. In other words we pay 7.5% of the house value/proceeds for three years irrespective of whether the proceeds remain in my mother’s name or are distributed.