fair deal at HSE website said:The person who is responsible for repayment of the nursing home loan to the Revenue Commissioners is called the relevant accountable person. The relevant accountable person may be a different person to the applicant, depending on the circumstances as set out in the following examples:
Example 1: Where you transfer or sell part or all of your property, during your lifetime, you and your spouse/partner will be the relevant accountable persons.
If your mother is giving/gifting you the family home would not therefore feel responsible for her care
I think there is a 5 year rule so if she transfers it to you now and in two years time she needs to avail of the fair deal scheme to go into the nursing home then it would be counted as an asset. This is to stop people deliberately transferring property to avoid paying towards their care. If she does not transfer it and needs care then it does not necessarily have to be sold - the state will pay and when she dies it is sold and they recoup the amount.
It seems according to the wording below that she is liable after death.
Can anyone elaborate on if there is reason not to do the transfer now?
After 3 years, if she was still in the nursing home but had transferred the house to you, then she would continue paying the 7.5% of the house value annually for as long as she remained in care, which could be for many more years.
I dont think this is true is it?
Many thanks for your post,
I dont think this is true is it? If she tranfers the house to me, but maintains it as "her principal residence" then from what I can understand the 3 year cap still applies. I dont see why she would "continue" to pay the 7.5% beyond the 3 years...
If she were to transfer now and within the next 5 years made a fair deal application, it would be 7.5% for 3 years only in the nursing home.
(this will also benefit me in terms of the tax bill Ill be paying
so you may make sure that it is a right of residence that is agreed on transfer.
I have a family member in a nursing home for over 4 years now, the part of their contribution based on their valuable home ceased after year 3, had this not ceased their care would now be unaffordable, thankfully though their contribution is now based on their income only, so there is no financial burden on them or us and this will remain the case indefinitely.
The legislation states ‘’ any income or asset which is transferred within 5 years of applying for the scheme is taken into account in the financial assessment’’
Therefore I think theroux’s mother can transfer the house to him while maintaining a right of residence and will not be assessed on the right of residence privilege, but she will still have transferred the house, and as such if she needs nursing home care in the next five years, then the house will still be taken into account in the financial assessment and no 3 year cap will apply.
Interesting! Are you saying that a transferred house, having been transferred within 5 years and therfefore assessable, will not be regarded as a PPR and so the 3 year cap would not apply? Seems harsh.
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