They are in very good financial shape.Deposits = I estimate about 300k, including 150k in Savings Certs, growing each month as funds accumulate in current account and credit union.
I would be encouraging your parents to make their money work for them to make life more comfortable and easy.
At the eighth year, I think the fund was worth 150k approx., and approx. 20k tax was paid. Unless there is some sort of disaster, these funds will never be encashed.
Deposits = I estimate about 300k, including 150k in Savings Certs, growing each month as funds accumulate in current account and credit union.
That was exactly my thought too. You know all this about your parents but you don't know their age?They’re your parents, and you don’t know how old they are?
Whats the flaw?There's a flaw in the FD scheme
If you keep the cash the state can claw an awful lot more from you. By putting it into the house, you're still keeping it for either yourself, or your children, but state will only get a percentage and you'll get Fair Deal that costs the tax paying public a lot of money. I'd call that a flaw. Don't think for one minute it's not being done.Whats the flaw?
The only thing that strikes me is the amount of wealth in financial assets here. If either of them needs the Fair Deal scheme it will not be sheltered the way that property is.
If it was me I would be investing an awful lot of that cash into my house. Otherwise, as No Regrets Coyote has also mentioned, it will go in Fair Deal payments if they ever need nursing home care.
I know what you mean about the FairDeal scheme, 50k spent enhancing the house means unchanged wealth (in theory), yet 50k less cash to be means-tested by the scheme.
Not strictly correct Brendan, the three-year cap only applies to your PPR, not financial assets.Burning €50k or spending €50k on the house and assuming it does not increase the value of the house, would save them 3.75% of €50k or €2k a year. It's not good value to burn €50k to save €2k a year for 2 years.
So a five-year stay in nursing care would see 3.75%*5*€300k=€56k surrendered.
No. I'm saying that in the back of their mind they should be aware that a material chunk of their savings could disappear due to a nursing home stay.Let's be clear.
Are you suggesting that they should blow €300k on their home
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?