The Fair Deal Scheme
The Fair Deal Scheme is a government scheme put in place to ensure that everyone can avail of nursing home care at a nursing home of their choice regardless of their means.
The contribution that is required from the resident of the nursing home depends on their income and assets. If they have very significant income and assets, they may end up paying all of the nursing home charges which will generally range upwards from €50,000 per year. If they have no assets and little income (for example, just their old age pension) the Government will look to them only for 80% of their pension as a contribution towards their nursing home care.
There are two parts to the application to join the scheme. The first relates to the “Care Needs Assessment” and this is to establish that the person does need full time nursing home care. This care needs assessment is generally carried out by a nurse on behalf of the HSE who can liaise with the medical personnel currently looking after the applicant. The second part of the application relates to the finances of the person applying for the scheme. They must submit evidence of all of their income and assets including their property and savings. They cannot avoid having assets included by transferring them to others unless they have done so more than five years ago.
The Scheme ignores the first €36,000 worth of assets for every applicant. All of the assets of a married couple are divided in two and half is attributed to each person. An annual contribution is then required from the applicant of 7.5% of their share of the assets. In the case of their home and certain business assets, this contribution of 7.5% per year is limited to three years. For all other assets it continues indefinitely.
Half the total income of a couple is attributed to each person and a contribution of 80% of that person’s income is also required.
When these contributions from your assets and income are put together, if they are less than the cost of the nursing home, the State will pay the balance. If they are more than the cost of the nursing home, the State will not make any contribution.
Where assets consist of property (i.e. land or buildings) the State will not insist that these be sold so that the 7.5% can be contributed. In these cases, the State will pay the 7.5% of the value of the assets but recover this money when the applicant and their spouse have passed away (subject to certain exceptions).
We are very experienced at Patrick J. Farrell and Company in advising on the Fair Deal Application and if you have any questions for us please contact Niall Farrell.
The Fair Deal Scheme Ireland
Frequently Asked Questions
What Is The Fair Deal Scheme And Who Is Eligible?
The Fair Deal Scheme provides financial assistance for individuals requiring long-term nursing home care in Ireland. Eligibility requires that the applicant is ordinarily resident in Ireland and assessed as needing long-term care.
How Is My Contribution Towards Nursing Home Care Calculated?
Your contribution is determined through a financial assessment which looks at your income and assets. Typically, a single person contributes 80% of their assessable income and 7.5% of the value of their assets annually.
What Costs Are Covered Under The Fair Deal Scheme?
The scheme covers standard nursing home services, including accommodation, food, nursing care, and basic aids. However, it does not cover additional services like hairdressing or therapies, which may incur extra charges.
What Is The Three-Year Cap On Asset Contributions?
The 3-Year Cap is a limit on how much you pay based on the value of certain assets. For certain assets like your home, any proceeds from the sale of your home or your farm/business, the scheme limits the contribution to 7.5% per year for a maximum of three years, totalling 22.5%. This cap will apply whether or not you choose to take out a nursing home loan.
How Do I Apply For The Fair Deal Scheme?
There are two parts to the Fair Deal Scheme application involves completing a form and undergoing both a care needs assessment and a financial assessment conducted by the HSE. It’s advisable to consult with a solicitor to navigate the process effectively.
What Happens If My Financial Circumstances Change?
You are required to inform the HSE within 10 working days of any significant changes in your financial situation, as this may affect your contribution amount.
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