Fair Deal/Nursing Homes Rent family home and keep the cash in new Fair Deal revamp.

[AlbacoreA]

My understanding its on the entering the scheme. While the assets left at the end of each year can be recessed, as obviously cash and such runs down, my understanding is the valuations of home are not looked at. That was my concern in what I expected to be a falling market or a even a crash. But if its only over 3yrs the likelihood of a large change in valuation is unlikely, not impossible.

If there are other properties in the assets they are treated like cash, and I don't see why they could not be revalued each year.

But if someone is in care, its likely you will difficult in doing anything, legal, like getting services connected, gas, electricity, repairs, insurance. Even where you have legal power of attorney (POA), guardianship etc. Its just nightmare.

Once care is on the cards, it really should be a case of succession. Ok there issues around tax and inheritance, and they prevent lots of things being done. But properties other than home should really be transferred, or sold, and the home place set up to be maintained in low cost fashion. Even as I say this I know most of the time this is impossible, as there's always someone that makes everything simple, difficult.

 

[twofor1]

Yes but do you agree the 2

It is not a question of agreeing, you will have to provide details of income, and all other assetts, you will then be assessed and told what your contribution will be. If you don’t agree with the financial assessment you have the right to appeal.

You are assessed on your home, your income and all other assets.
If part of a couple you are assessed on half the home, income and all other assets.
The first €36k is disregarded from the assessment if single, or €72k if part of a couple.
You are assessed on the home for the first 3 years only.

For years 1, 2 & 3 you pay the amount assessed on the home as well as the amount assessed on income and all other assets. If you don’t want to or can’t afford the amount assessed on the home you can defer this part of your contribution by availing of the loan. You still pay the amount assessed on income, and all other assets, this part of your payment cannot be deferred and must be paid weekly / monthly.

After year 3, you pay weekly / monthly the amount assessed on income and all other assets, but not the home.

A single applicant who availed of the loan and died after 1 year would owe the state 7.5% of the house value only, not the estate value which could be substantially more. After 2 years 15%, and 22.5% capped after 3 years.

An applicant who did not avail of the loan and paid the assessed amount on the home would owe the state nothing, regardless of when they die, year 1, 2, 10 or more.

A good Fair Deal calculator and other info can be found here; http://myfairdeal.ie/?page_id=82

Agreed but is the 22.5% calculated on the valuation of the house when entering the scheme ( my understanding) or on the valuation of the property on death ( assuming it's not sold in the meantime).?

It is on the house valuation submitted when entering the scheme as long as the current valuation is reasonably in line with property price inflation over the years.

One of my relatives availed of the loan and lived for 6 years, the home valuation submitted on death was substantially higher than the valuation submitted when entering Fair Deal but was in line with property price inflation for the relevant years.
The amount requested for repayment was 22.5% of the substantially lower initial valuation plus an amount when they adjusted the loan amount with the consumer price index.

 

[Banquo]

Agreed that is my understanding of how it works (I went through the application process for my mum recently). However I wasnt aware that they could look for more that the 22.5% of the initial valuation. I didn't see any language around CPI adjustment of the loan amount. I must go through the documents again. Thanks.

 

[twofor1]

I didn't see any language around CPI adjustment of the loan amount. I must go through the documents again.

Repaying the nursing home loan​

We will notify the relevant person when the loan repayment is due. The consumer price index is applied to the amount due.
https://www2.hse.ie/services/fair-deal-scheme/nursing-home-loan.html

Applying the CPI looks like a head wrecking exercise for a Friday evening, page 70 here;
National Guidelines for the Standardised Implementation of the Nursing Home Support Scheme

 

[Marsupial]

As others have said, I think there's a load more problems with renting a property than giving up away 80% of the income.

Everyone wants to get their hands on older people properties. When they should be getting the govt to build the houses they've been promising for decades.

Governments don't build houses; Local Authorities do. And as the government parties don't control many of the key urban/suburban Local Councils it's in some councillors' interests to stymie their own Council's proposed housing plans.

 

[AlbacoreA]

Govt still dictate to local authorities. While they have some autonomy they aren't independent states.

In terms of fair deal the rules definitely are what prevents these properties from being utilised.

But even if it was possible to rent them out. It's not going to fix the supply issues.