phenomenon
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Hi all…
I’m trying to figure out the best way to pay for nursing home care for my father, and if we would be entitled to any assistance at all. He has been living with Alzheimer’s for many years and is now at a stage where he is becoming increasingly aggressive. It seems we may not be able to keep him at home for much longer. My parents have two properties, a PPR, and a rental property divided in to 11 bedsits. The rental property is worth approx 950,000 and brings in 70,000 gross p/a. They also have combined pensions totalling 18,000 approx. They pay me approx 18,000 per annum to manage letting/up-keep of the rental property.
It would be great if any readers could confirm or clarify the following…
Are there any other subventions/contributions given by the HSE towards full time nursing home care outside the Fair Deal scheme, or is it pretty much the only show in town? It is just about do-able for us to pay the full lot ourselves, but doesn’t leave my mother with very much, and me with a load of work to do, unable to take a fee.
I’m sure plenty will say just sell the rental property, and that is an option, but I’ve put a lot in to it over the last 4 years to secure my parents income and our inheritance.
Any advice much appreciated!!!
I’m trying to figure out the best way to pay for nursing home care for my father, and if we would be entitled to any assistance at all. He has been living with Alzheimer’s for many years and is now at a stage where he is becoming increasingly aggressive. It seems we may not be able to keep him at home for much longer. My parents have two properties, a PPR, and a rental property divided in to 11 bedsits. The rental property is worth approx 950,000 and brings in 70,000 gross p/a. They also have combined pensions totalling 18,000 approx. They pay me approx 18,000 per annum to manage letting/up-keep of the rental property.
It would be great if any readers could confirm or clarify the following…
- As I understand it, owning the rental property essentially rules us out of the fair deal scheme – 5% of the value of the second property is required every year (as against just 3 years for the PPR) as a contribution towards the care, in our case approx 48,000, coming pretty close to the actual cost of privately funding nursing home care.
- We have looked in to transferring the rental property to myself and my two siblings. I understand that we would have to wait at least 5 years until it is not included in my parents list of assets for assessment by the HSE. The fair deal scheme may well not be around in 5 years.
- I think that the approx 460,000? Parent/Child gift threshold would exempt both myself and my 2 siblings from CAT, given that the gift would amount to approx 316,000 each, but my parents would be liable for CGT on the sale, which in their case would amount to something like 175,000. (They initially paid 83,000 for the property).
- Either way, in the short term, it appears to me that we would have to pay the fee for full time nursing home care ourselves, approx 55,000 p/a. I would have to forego money paid to me for management/up-keep of the rental property so that my mother would have enough to live on, I reckon she’d be left with something like 26,000 p/a after tax.
- Basically all we would be entitled to is tax relief on the nursing home fee, at 41%?
Are there any other subventions/contributions given by the HSE towards full time nursing home care outside the Fair Deal scheme, or is it pretty much the only show in town? It is just about do-able for us to pay the full lot ourselves, but doesn’t leave my mother with very much, and me with a load of work to do, unable to take a fee.
I’m sure plenty will say just sell the rental property, and that is an option, but I’ve put a lot in to it over the last 4 years to secure my parents income and our inheritance.
Any advice much appreciated!!!