The Fair Deal Scheme has been a game changer for many people seeking to avail of Nursing Home care. As the population ages this will become an increasing feature of Irish society. It is an issue that is frequently at the back of the minds of people as they age. It also clearly impacts on children. The Fair Deal Scheme has been in operation now for several years and was brought in by Mary Harney when she was a Minister. The rules of the scheme were pretty much set in stone until recently.
Initially the law was that if the home was rented out when the owner/s were in a Nursing Home 80% of the rent was payable to the Fair Deal Scheme as part of a financial contribution. If the house was sold within a three year period any money raised from the sale of the property was subject to a 7.5% levy for so long as the parent was in the Nursing Home.
Last October these rules changed. It is now possible to sell the family home and still keep the three year cap on contributions in place. This means that it would be easier to sell the family home or, perhaps, in certain cases one of the children may purchase the family home without any adverse financial consequences. It was often a worry that properties were being left vacant which clearly give rise to insurance issues lest any damage be caused.
In current circumstances with the housing crisis it would be a shame that the property could not be acquired or rented out without such a large sum being taken from the rental income. This is progress and sensible. If you have any queries please contact Finola Cronin.