Fair Deal Q&A
The official name of the “Fair Deal” is the Nursing Home Support Scheme. It replaces the Subvention Scheme from 27th October 2009.
It comprises of 2 tests:
1. The Care Need Test
2. The Financial Test
The CARE NEEDS TEST helps the HSE decide if you need Nursing Home Care. It will be carried out by a healthcare professional. If the healthcare professional finds you do not need long term care, you can apply for a review after 6 months or earlier in some circumstances.
The FINANCIAL TEST calculates your payment for your care.
If you are a single person, you will pay:
A maximum of 80% of your nett annual income.
plus
7.5% of the current market value of the principal private residence (your home) for a maximum of 3 years
plus
7.5 % of the current market value of the remaining assets/cash per annum.
but
The First €36,000.00 (Exemption) of your assets are excluded in calculating number 3 above (remaining assets/cash) but if you have less than €36,000.00 in remaining assets/cash, the Exemption will be deducted from the value of your private residence.
If you are one of a couple, you will pay.
A maximum of 40 % of the nett annual income of the household
plus
3.75 % of the current market value of the principal private residence (your home) for 3 years
plus
3.75% of the current market value of the remaining assets/cash per annum of the other assets.
but
The First €72,000.00 (Exemption) of a couple’s assets are excluded in calculating number 3 above (remaining assets/cash) but if a person had less than €72,000.00 in remaining assets/cash, the Exemption will be deducted from the value of private residence.
You can request a Financial Assessment review after 12 months.
The HSE can conduct a Financial Assessment review at any time.
What’s needed?
The Application Form [NHSS1]
Written Proof of your income/s
Health expenses
Rent payments
Maintenance payments
Property tax
Dependent children
Valuations of your property from an Auctioneer.
Balances in your bank, post office, credit union.
Borrowings
Qualifying Redress Payments
Valuations of other assets.
If you have sold or transferred assets within 5 years of the application. The Market Value of the Asset sold or transferred will be included in your Financial Test. So, the following are needed.
Date of sale or transfer.
Market Value at date of transfer
Amount you received.
Who bought or received the asset?
Show where the proceeds of sale of sale are.
Fair Deal Loan
If you do not want to sell your assets (e.g. land, business, property) to pay for your care, you can delay paying until after your death, using the unsold assets as security for the post death payment. (the HSE will take a mortgage of your property).
The Loan must be repaid within 12 months of your death and if not, interest is payable from the date of death. Re-payment can be deferred in certain limited cases.
It’s a prudent idea to review your will at the same time as availing of the Fair Deal Nursing Home Loan (the “Ancillary Nursing Home Support Scheme”)
Who to Contact
If you live in Co Wexford, contact
HSE Nursing Homes Support Office,
Community Services,
Georges Street,
Wexford
Tel: 053 918 5715.
If you live in Counties Carlow or Kilkenny, contact
HSE Nursing Homes Support Office,
Community Services,
James’s Green,
Kilkenny
Tel: 056 778 4761
Declan Joyce
Principal Solicitor
Kelly Colfer Solicitors
051 421212
info@kellycolfer.ie
