Many of us may choose to go to a Nursing Home or perhaps the choice is taken from us in that it is the only option to us.
If we or our loved ones are considering going to a Nursing Home, we need to be familiar with the ‘Fair Deal Scheme’. We at Elaine Byrne Solicitors have helped hundreds of families in this area.
The other aspect of nursing home care is its effect on our wishes regarding our Wills and property. We focus on our holistic approach to sorting our affairs and so we will discuss this in general terms when our clients make their Wills.
Eg Shane under the terms of his Will leaves his house to Peter and his savings to Paul. Shane thereafter goes to a nursing home. How does this affect his will and is this in line with Shanes wishes?Get in Touch
From a legal point of view, the most pertinent aspect of the Fair Deal Scheme relates to the financial aspect, if we go to a nursing home what do we pay and what if anything will the State contribute
Let’s look at example – Violet
Violet is single and is going to a nursing home shortly for care. Her income comprises her state contributory pension of €248.30 per week, she has certain allowable deductions being her health expenses so her assessable income is €240.00 per week. Violet will pay 80% of this per week i.e. €192.00.
Violet’s assets are her family home at Nobber which is valued at €175,000.00. She also has a house in Duleek which she recently inherited from her sister valued at €225,000.00 and she has savings of €50,000.00. Violet will pay 7.5% of the value of her assets (being €175,000.00 + €225,000.00 + €50,000.00 = €450,000.00) less €36,500= €33,750.00.
This figure equates to her annual payment so dividing this by 52 gives a weekly contribution of €649.00. Add in 80% of her assessable income of €240.00 = €192.00 so Violet’s weekly contribution is €841.00. The nursing home costs €1,600.00 per week and the HSE will pay the balance of €759.00 per week.
- It is important for Violet to remember that in the case of her home in Nobber, the value of this is only taken into account for a maximum of 3 years so a cap of 22.5% applies. If however Violet sells her home then her home in Nobber becomes a cash asset so that the 3 year cap will no longer apply. So that if, for example, Violet remained in the nursing home for a period of 5 years the value of her house in Nobber would only be taken into account for a maximum of 3 years but if she sold it the value of the proceeds of sale would be taken into account for the full 5 year period.
- Violet when she calls to her solicitor may suggest that she would like to transfer the house recently inherited in Duleek on the basis that she wants to give it to her niece in any event and furthermore it is significantly increasing her contribution towards the cost of care. Violet’s solicitor however will point out to Violet that any land, property or money given by an applicant to another person in the last 5 years will be taken into account in the financial assessment.