Independent Advice on Fair Deal Scheme

Addle

As revenue are involved in collection of payment when due, I hope this is the best topic to ask.

Can anyone recommend an advisor on a possible fair deal application please?

Trampas

Addle wrote: »

As revenue are involved in collection of payment when due, I hope this is the best topic to ask.

Can anyone recommend an advisor on a possible fair deal application please?

They should help you fill in the form.

They want everything that shows what assets the person has.

If the person has cash assets and siblings they should do the max allowance on a gift. Cause better in their hands than tax man

Uriel.

You really don't need to spend money on independent advice if your applying for the Scheme. Waste of money.
Simply, you provide details of all income and assets and the NHSS support offices are very helpful

Addle

Thanks for the replies.
I don’t know about savings, but I get the impression he’s entirely dependent on state pension and medical card.
Has a home and a bit of land in a rural location. They’re not of much value.
We wondered if he was better off selling his house. It will quickly fall into disrepair if not lived in, and he’s not interested in being a landlord.
It’s not his problem if the house goes to hell though i suppose.

Uriel.

Addle wrote: »

Thanks for the replies.
I don’t know about savings, but I get the impression he’s entirely dependent on state pension and medical card.
Has a home and a bit of land in a rural location. They’re not of much value.
We wondered if he was better off selling his house. It will quickly fall into disrepair if not lived in, and he’s not interested in being a landlord.
It’s not his problem if the house goes to hell though i suppose.

No don't sell the house. His contribution from the house is capped at 7.5% per year for three years (i.e. 22..5%). If he sells and puts the cash from the sale in a bank account he'd be paying 7.5% on the cash open ended (i.e. No 3 year cap)

So for example - house is worth 100, 000
If he keeps house he'd pay 7500 in year 1, 7500 in year 2 and 7500 in year 3 and that's it - a total contribution relating to the house of 22,500.

If he sold house for 100k he'd pay 7500 per annum until he leaves fair deal. So if he lived for 5 years on a nursing home he'd pay a contribution of 37500 (7500 x 5) from the cash he got from the house sale.

If he was to live less than 3 years it wouldn't matter either way, but that's difficult to predict.

The NHSS office and/or social workers can advise further.

Uriel.

Ps.
On the land, it doesn't matter quite so much as the 3 year cap mentioned above only applies to a person's principal residence and not to other assets.

Addle

Thanks for that.

Trampas

Don’t rent out the house as that will be treated as income so has to pay 80% of that to taxman.

There must be thousands of empty houses like that around the country but separate thread.

You can pay the home bill after they pass if no money to pay it now

beauf

There are different rules around farms. But on normal houses you pay 7.5% the value of the PPR for 3yrs.

Sell it and convert it to cash and it's 7.5% for every year you are in the home. They do the same for any cash over 36k or thereabouts and other assets.

No point renting, you pay a lot of tax and the fair deal takes 80% of your income after that.

Did you read the rules, terms and conditions?

Addle

Thanks for the replies.

I’ve read the rules since I posted this morning.
I was just trying to help out a friend.

We don’t know if his land would be considered a farm. He wasn’t farming it anyways.
He’s relatively young but can’t live independently anymore. He could require care for 20/30 years.
I’ll leave it to him.

beauf

There are people who will advise on the fair deal. Don't have any names for you sorry.