gnf_ireland
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I have been asked by a friend around the Fair Deal scheme and how this would work if a child was to pay the nursing home bill rather than the parent or availing of the Nursing Home Loan.
Lets say the Parent is about to go into care, and cost is 52,000 (1k a week). They are approved for the Fair Deal Scheme. They have a state pension (12k) and have 25k in savings and a house worth 500k.
For years 1-3, the charge is 80% of income (9600) + 7.5% of assets less 36k (36,675 euro). From year 4 on-wards, the charge would be the 80% of income only. The government provide the balance.
For years 1-3, the family need to fund the 36,675 euro. The options are
(a) avail of the Nursing Home Loan facility and place a charge on the estate. This would equate to 110k over the 3 years OR
(b) 2 of the children (high tax earners) paying the money to avoid the charge on the house.
If option b is selected, can the 2 children avail of a tax credit for the nursing home cost. My reading from the revenue site is they can
[broken link removed]
"The HSE also pay a contribution towards the cost of the nursing home. You cannot claim relief on the share paid by the HSE."
Anyone got any personal experience of this, or confirm that it is possible to get marginal tax relief on the 36,675 if paid by a relative.
Thanks
Lets say the Parent is about to go into care, and cost is 52,000 (1k a week). They are approved for the Fair Deal Scheme. They have a state pension (12k) and have 25k in savings and a house worth 500k.
For years 1-3, the charge is 80% of income (9600) + 7.5% of assets less 36k (36,675 euro). From year 4 on-wards, the charge would be the 80% of income only. The government provide the balance.
For years 1-3, the family need to fund the 36,675 euro. The options are
(a) avail of the Nursing Home Loan facility and place a charge on the estate. This would equate to 110k over the 3 years OR
(b) 2 of the children (high tax earners) paying the money to avoid the charge on the house.
If option b is selected, can the 2 children avail of a tax credit for the nursing home cost. My reading from the revenue site is they can
[broken link removed]
"The HSE also pay a contribution towards the cost of the nursing home. You cannot claim relief on the share paid by the HSE."
Anyone got any personal experience of this, or confirm that it is possible to get marginal tax relief on the 36,675 if paid by a relative.
Thanks