ReadySteady
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Thanks for your comment, you are correct in your thinking - but you have picked me up wrong in my initial thread. I mentioned that full payment of the nursing home loan would be repaid upon transfer of the home. 7.5% of the value X three years. This is the total nursing home loan that would be collected in any circumstance.Am I correct in thinking that any assets a person has when applying for Fair Deal funding need to have been transferred 5 years or more, otherwise they become part of the assets of the applicant and will be used to pay or part pay the nursing home costs? By getting a person into the Fair Deal scheme with the taxpayer mostly paying for it, then rearranging the assets to a family's advantage will hardly go unnoticed by the HSE. I doubt very much what you're proposing will be allowed without an in depth look by the Fair Deal Financial Dept. I certainly wouldn't go ahead without talking to them. That's not to say that this is not being done and I wonder what would be the repercussions if HSE found out.
Thanks for the advice! The family will get in contact with the fair deal office to discuss options, just trying to gather facts or if anyone had experience.The HSE must be advised of any change in circumstances. Two children who were not living there when the Fair Deal application was made, converting the family home into 2 units and moving in would be a notifiable change. I would think the HSE would say it is then more valuable and would reasonably expect there to be rental income, both would be taken into account in a financial reassessment.
The house can be transferred or sold at any stage, whatever is owed must then be paid. More importantly the 3 year cap will no longer apply and the house sale proceeds (Or value if no payment made) will become assessable as long as the mother is in care, no longer just for 3 years.
From what you posted, the best option might be for both to move in as caretakers, do nothing but pay the bills and maintain etc, there should be plenty of space in a 5 bed to keep away from each other.
If they can’t do that, they should stay in their rented accommodation. Transferring the house and or dividing it into 2 units does not seem to be an option for many other reasons, not just the above.
No, the 7.5% for 3 years only applies while the mother owns the house. If sold or transferred the 3 year cap no longer applies.The nursing home loan would be paid in full upon transfer of the house - 7.5% value X three years. Wouldn't that be the end of the nursing home loan side of things, and the mother will continue paying 80% of her income indefinitely ?
The rules are that 7.5% of the assets are payable every year, with an exception for the family home, that is charged at 7.5% for 3 years only.Hi
On this subject and another thread in relation to the 3 year home exemption rule, can someone please explain if the house is put up for sale, say 18 months after the Person goes into care, how is the liability to the HSE calculated?
Bedlam
Thanks for the replies to expand my side both parents in nursing home. Existing life loan 225k outstanding property value 300k. Under the fair deal if the property was sold and loan paid off would the fair deal reassess their means and increase subsidy? Would it make sense to go this route?The rules are that 7.5% of the assets are payable every year, with an exception for the family home, that is charged at 7.5% for 3 years only.
If the family home is sold at any point while the owner is in the Fair Deal scheme the Family Home exemption no longer applies, and 7.5 % is charged on all assets every year.
For example house assessed at €200k (after the allowances) so 7.5% ie €15k due each year for 3 years.
If the house is sold at any point while the person is still in the nursing home, wether that is year 2 or year 5, then €15k becomes PAYABLE EACH year there after. Because the person now has cash assets which are not exempt under the 3 year rule, and which cannot use the loan scheme, ie the money has to be paid each year.
In effect a house in the Fair Deal scheme cannot be sold, without serious implications.
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