Fair Deal Scheme - Worth Applying if considerable assets?

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guerngirl

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Is it worth applying for the HSE Fair Deal Scheme if the person in question has assets in excess of €1.5 million (house, shares and cash)?
 
guerngirl said:
Is it worth applying for the HSE Fair Deal Scheme if the person in question has assets in excess of €1.5 million (house, shares and cash)?
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It depends on the proportion of PPR to cash. The assessment on the PPR is for 3 years only. How much is cash and shares, and how much is PPR? Is the spouse alive and living in the PPR?
 
guerngirl said:
Is it worth applying for the HSE Fair Deal Scheme if the person in question has assets in excess of €1.5 million (house, shares and cash)?
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It depends I guess.

What does a nursing home cost, €60,000 a year? So that’s €36,000 a year net of tax relief.

How does ‘Fair Deal’ work? Correct me if I’m wrong, they get 80% of your income and 22.5% of your assets including your home (i.e. 7.5% per year for three years)?

So surely it depends on a lot of factors like the values, income levels, etc?
 
thanks, I appreciate the feedback. My question was fairly general but cash would be somewhere around 500k with the rest tied up in shares and house
 
This calculator will give you an idea whether they would be entitled to anything. As a single applicant, they are probably on the border of whether they would get anything with that amount of wealth and presumably some pension income.

Calculator March 2021 – fair deal

Delete Calculator Delete Calculator Delete Calculator..
myfairdeal.ie

A few things to highlight:
1) It is not just assets, income from pensions and other sources are included in the calculation
2) If they have a spouse, it is a joint application. €1.5m in assets between 2 is much more likely to be entitled to some cover from the Fair Deal scheme
3) After 3 years, the PPR is excluded so at that point, they may well be entitled to something.

Even if the assessment deems that they are not entitled to anything this year & they have to pay the full amount, their cash will be rapidly decreasing each year so it may be worth reapplying each year based on the most up to date figures they have.
 
noproblem said:
Plenty of farmers have more than that and qualify. Hardly having a laugh.
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The OP didn't say they were farmers.
7. 5% of 1.5mil is in well in excess of c. 60, 000E, to 70,000 annual nursing fees before considering any income.
HSE isn't in Switzerland I'm afraid.
Laughing again.
 
fidelcastro said:
The OP didn't say they were farmers.
7. 5% of 1.5mil is in well in excess of c. 60, 000E, to 70,000 annual nursing fees before considering any income.
HSE isn't in Switzerland I'm afraid.
Laughing again.
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Have no idea what point you're trying to make.
 
guerngirl said:
thanks, I appreciate the feedback. My question was fairly general but cash would be somewhere around 500k with the rest tied up in shares and house
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Not with €500k in cash and a few hundred grand in shares. You pay for the cost of the home until you can't afford it anymore.

Gordon Gekko said:
What does a nursing home cost, €60,000 a year? So that’s €36,000 a year net of tax relief.

How does ‘Fair Deal’ work? Correct me if I’m wrong, they get 80% of your income and 22.5% of your assets including your home (i.e. 7.5% per year for three years)?

So surely it depends on a lot of factors like the values, income levels, etc?
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You are probably looking at €80,000+ in Dublin just for the room. Then you have any other expense of living to go on top of that as well as medical bills.

Almost correct on the fair deal. The first €36,000 is excluded. The 22.5% cap is on the family home, there is no cap on other assets, 7.5% of the value each year.

If this person has €1.5m in assets, 7.5% is €112,500 a year.

Then there is the moral argument around it. This is a wealthy person. Should they not be paying for the cost themselves instead of getting the tax payers to pay for it?


Steven
www.bluewaterfp.ie
 
Hi Steven,

I don’t agree that there’s any moral argument.

If someone with a few bob is entitled to avail of ‘Fair Deal’, well they’re entitled to avail of it.

The same person has probably paid a lot of tax over their lifetime, but in any event, that’s irrelevant.

As I understand it, the deductions are capped at the actual cost of the care, so it all becomes a moot point at a certain level.

Gordon
 
noproblem said:
Plenty of farmers have more than that and qualify. Hardly having a laugh.
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Plenty of suburban old people living in houses worth €1.5 million but with modest incomes. They are still rich but they are entitled to the scheme. It doesn't matter if you have a house worth €500k and a million in cash or a house worth €1.5 million and no cash you still have the same amount of wealth.
 
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