Whatever you do, don't sell the house. As an asset, their primary residence is protected by a three year rule. Savings in a bank account are not.
Fair Deal is not too difficult to work out and in truth, its turning out to be a good deal for most people.
The calculations are fairly simple
Every nursing home in the countrty under the scheme has a n agreed rate with the HSE as negotiasted with the NTPF. These rates on on the HSE website. This is the fee that the nursing home will be paid.
Payment to the nursing home is made up from three sources,
Income - 80% of the residnets income
Assets - an annual contribution equal to 5% of the value of assets and ignoring the first €36,000.
Also, there is a special provision to ignore the resident's home in the value of assests after three years.
HSE - The HSE pays the balance.
There are numerous examples of how this works out on the HSE website.
One other thing about your case, consider applying for fair deal for your mother. If your mother has been getting subvention, then her assets (half of the house) was considered at the time of application and she has been penalsied for years becuase she has the house. Therefore, her contribution under fair deal will decline sharpely once she has been in a nursing home for three years.
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Hi,
My mum is in a nursing home under the subvention scheme (pre Oct 27 1999).
My father has now been referred for long term care and I have to apply under the new fair deal scheme.
My problem is this: their house is now unoccupied. His only income is his pension which i understand he will contribute 80% of for the scheme. I also understand that he will have to pay 2.5% (as he is married ie 1/2 of 5%) of the house value for a max of three years under deferred payment.
My problem is what to do with the house? If it is rented I believe this is considered income and 80% is taken?
Can the house be sold while they are alive (my parents have willed it to their children including me), I believe it is then considered savings of my father and as such 2.5% is taken annually for the remainder of his life? Or do we leave the house idle?
Any advice is greatly appreciated.
Az