Fair Deal Advice

Bunnie67

Hi

I need advice in relation to a Fair deal application. My mother was recently discharged from hospital and for the first few weeks was doing very well.

Things then started to go downhill. She cannot do anything independently now and the Public Health Nurse has advised me to make an application to Fair Deal. Her reasoning was that once approved, the approval will last for 6 months and can be used if necessary.

My mother owns her own house and was a young widow -up until recently she had cash assets of approx 100k.She recently transferred 70k to myself and my siblings. I need advice on how this transfer will be accessed under Fair deal and if we would be better off transferring the cash back to her before we submit the assessment.

Many Thanks for your advice!!

byhookorbycrook

I think you would do better to contact a financial advisor on this, though the public health nurse is usually very helpful too,

Flinty997

Rules are here

https://www2.hse.ie/services/schemes-allowances/fair-deal-scheme/financial-assessment/#assets

I would say act sooner rather than later. These things have a habit of happening faster than you expect.

Fair deal while expensive is a good scheme. If you have to pay for privately it will cost you a lot more over time.

893bet

Take care about transferring cash back to them.

They will end up with a tax bill. I think there is a different gift threshold from child to parents vs from parents to child (of it was 70 each then there would be a tax bill to go back, if split among a few maybe not).

My basic understanding is that 70k that was gifted is assumed to be still part of the assets (and is assumed to be part of their assets for 5 years post transfer date) of your parent and forms part of the assessment for means. No need to transfer back.

Sinus pain

Just declare the transfer on the form if it was transferred in the last 5 years - my understanding of fair deal (currently gojng through it at the minute) is that it will be assessed as means.

So her means will be 100k and the value of her house.

Gael23

No need to transfer it back but it will still be counted as part of her means test as if she had 100k less 36k disregard

Upthewalls1

Hi all,

The fair deal scheme can be quite confusing. Could you all help me with a question I have. To keep the example simple lets say a person had €200,000. They transferred €100,000 to family over the year or two before applying for the fair deal. So €36,000 isnt taken into account so they are now being assessed on €164,000 but they only have €100,000 in the bank. Lets say they stay in a nursing home long enough to go through the €100,000 and they've nothing left (only the €36,000 thats exempt), does the Government pay for the remaining years they need care or do the family have to try come up with the money?

Sinus pain

The money will be seen as means so they will pay a portion of that every week for three years (is my understanding) I know with using your home as liquid assets that’s how it’s done -after three years you just pay your pension percentage. And the government pays the rest

Henry Ford III

https://www.boards.ie/discussion/comment/121467306#Comment_121467306

In your example the Fair Deal assessment would initially be €200k less the €36k, which is €164k @ 7.5% p.a. as you say. 80% of the OAP goes towards cost of care too don't forget. House is assessable too potentially.

Assuming zero return the following year review would be €187700 less the 36k, i.e. €151700 x 7.5% etc. etc.

So the cash assessment will go down every year until it reaches the €36k threshold, and will then stop.

p.s. Transfers made within 5 years are ignored.

Henry Ford III

https://www.boards.ie/discussion/comment/121571924#Comment_121571924

3 years is assessed on the value of the property only.

Assessment on "cash assets" continues with no term.