Q: My husband died in 2021, and he was in a nursing home for three years prior to his death through the Fair Deal Scheme. As a result, I owe quite a lot to the HSE, for the loan/ shortfall. I understand that when my home is sold eventually, I shall need to pay back this loan, within 12 months of my own death or the sale of the house. I have two questions:
If there is a delay in selling my house, after I die, and it is not sold within the stipulated 12 months, does interest accrue on the loan and how much? If I need to go into a nursing home, can a second Fair Deal Scheme be taken out on this house for me?
Answer: Interest will be charged on any part of the loan that is paid after the due date. The due date is:
12 months after the date of death, for loan repayments made because the person in care died.Six months after the date of sale or transfer, for loan repayments made because the property or land on which the Charging Order exists is sold or transferred. For any payment made after the due date, interest will be charged from the:
Date of death, for loan repayments made because the person in care died. Date of sale or transfer, for loan repayments made because the property on which the Charging Order exists was sold or transferred. The relevant accountable person or personal representative must act early to avoid interest charges. The current interest rate is 0.0219% per day.
Repayment of the nursing home loan can be deferred in certain cases. An application will need to be made to the National Nursing Homes Support Office. People who may apply for a deferral include:
Your spouse or partner.Your child under the age of 21 (or your spouse / partner’s child). Your child if their assets do not exceed €36,000. Your sibling if their assets do not exceed €36,000. A relative in receipt of a disability or similar allowance, blind person’s pension, or the State pension (non-contributory), or whose income doesn’t exceed the State pension (contributory). A relative who is in receipt of a foreign pension or allowance similar to those outlined above. A relative who owns a building to which the principal residence is attached (for example ‘a granny flat’). Any person who cared for the person in care prior to the latter entering the nursing home (this is defined by relevant social welfare payments such as carer’s allowance). Individuals other than a spouse or partner are termed ‘connected persons’.
They must satisfy the following conditions:
The house must be the only residence. They must have lived in the house for not less than three years preceding the original application for the nursing home loan. They must not have an interest in any other property. The deferred loan must be repaid within 12 months of the date of death of the person who was approved for the deferral of the loan. If the circumstances of the connected person change, the loan must be repaid. For example, if the property is sold or they no longer live in the house, the loan must be repaid within six months.
Q: How does the Fair Deal work for a person with a house rented to a sitting tenant and €50k in savings?
Answer: Anyone who is in nursing home care through the Nursing Home Support Scheme and is renting their principal private residence may be eligible for assessment of this income at a lower rate.
There are certain criteria that must be met including the principal residence must be registered with the Residential Tenancies Board (RTB). To apply for this reduction you must complete the Principal Private Residence Rental Income application form.
Rental income on a dwelling other than the family home is assessed in the normal way.
Q: I would like to know what is the position please of co-ownership of a property by four siblings where one of the siblings has to enter a nursing home?
Answer: The property can be used to secure the nursing home loan. However, to qualify any person who jointly owns a property with the applicant must give consent to the creation of a charge over the property in favour of the HSE.
Q: I’m a 77-year-old female in good health living alone in my own bungalow without a mortgage and no living relatives. I’m stretched financially and may need to avail of taking out equity on the property. If this goes ahead and then, in the future, I need to move into a nursing home under the Fair Deal scheme will this cause an issue?
Answer: If you have taken out a life loan (equity release loan) to buy, repair or improve a property, you must provide a statement from the financial institution showing the date the loan was taken out and the original amount borrowed. If you are applying for the nursing home loan which is Ancillary State Support, you will also need to include:
A copy of the terms and conditions of the life loan. The written consent of the loan provider to the creation of a second charge in favour of the HSE.An up-to-date statement, within the last six months on the amount owing on the life loan.Q: My father has benefited from the Fair Deal to partially pay his nursing home fees for three years this coming Easter.
My mother has a live-in 24/7 carer at home for more than three years now due to her disability. My parents’ bank account savings are depleting fast. By early this summer their income (pensions) will not cover all their weekly costs.
Can we get a review of the Fair Deal in light of their impending financial situation?
Answer: You can request another financial review 12 months after your last review. However, the HSE may review a financial assessment at any stage.
Disclaimer: The information in this article is intended as a general guide only. While every care is taken to ensure accuracy of information contained in this article, Aisling Meehan, Agricultural Solicitors and Tax Consultants does not accept responsibility for errors or omissions howsoever arising. E-mail aisling@agrisolicitors.ie
Aisling Meehan, agricultural solicitors and tax consultants.
Q: My husband died in 2021, and he was in a nursing home for three years prior to his death through the Fair Deal Scheme. As a result, I owe quite a lot to the HSE, for the loan/ shortfall. I understand that when my home is sold eventually, I shall need to pay back this loan, within 12 months of my own death or the sale of the house. I have two questions:
If there is a delay in selling my house, after I die, and it is not sold within the stipulated 12 months, does interest accrue on the loan and how much? If I need to go into a nursing home, can a second Fair Deal Scheme be taken out on this house for me?
Answer: Interest will be charged on any part of the loan that is paid after the due date. The due date is:
12 months after the date of death, for loan repayments made because the person in care died.Six months after the date of sale or transfer, for loan repayments made because the property or land on which the Charging Order exists is sold or transferred. For any payment made after the due date, interest will be charged from the:
Date of death, for loan repayments made because the person in care died. Date of sale or transfer, for loan repayments made because the property on which the Charging Order exists was sold or transferred. The relevant accountable person or personal representative must act early to avoid interest charges. The current interest rate is 0.0219% per day.
Repayment of the nursing home loan can be deferred in certain cases. An application will need to be made to the National Nursing Homes Support Office. People who may apply for a deferral include:
Your spouse or partner.Your child under the age of 21 (or your spouse / partner’s child). Your child if their assets do not exceed €36,000. Your sibling if their assets do not exceed €36,000. A relative in receipt of a disability or similar allowance, blind person’s pension, or the State pension (non-contributory), or whose income doesn’t exceed the State pension (contributory). A relative who is in receipt of a foreign pension or allowance similar to those outlined above. A relative who owns a building to which the principal residence is attached (for example ‘a granny flat’). Any person who cared for the person in care prior to the latter entering the nursing home (this is defined by relevant social welfare payments such as carer’s allowance). Individuals other than a spouse or partner are termed ‘connected persons’.
They must satisfy the following conditions:
The house must be the only residence. They must have lived in the house for not less than three years preceding the original application for the nursing home loan. They must not have an interest in any other property. The deferred loan must be repaid within 12 months of the date of death of the person who was approved for the deferral of the loan. If the circumstances of the connected person change, the loan must be repaid. For example, if the property is sold or they no longer live in the house, the loan must be repaid within six months.
Q: How does the Fair Deal work for a person with a house rented to a sitting tenant and €50k in savings?
Answer: Anyone who is in nursing home care through the Nursing Home Support Scheme and is renting their principal private residence may be eligible for assessment of this income at a lower rate.
There are certain criteria that must be met including the principal residence must be registered with the Residential Tenancies Board (RTB). To apply for this reduction you must complete the Principal Private Residence Rental Income application form.
Rental income on a dwelling other than the family home is assessed in the normal way.
Q: I would like to know what is the position please of co-ownership of a property by four siblings where one of the siblings has to enter a nursing home?
Answer: The property can be used to secure the nursing home loan. However, to qualify any person who jointly owns a property with the applicant must give consent to the creation of a charge over the property in favour of the HSE.
Q: I’m a 77-year-old female in good health living alone in my own bungalow without a mortgage and no living relatives. I’m stretched financially and may need to avail of taking out equity on the property. If this goes ahead and then, in the future, I need to move into a nursing home under the Fair Deal scheme will this cause an issue?
Answer: If you have taken out a life loan (equity release loan) to buy, repair or improve a property, you must provide a statement from the financial institution showing the date the loan was taken out and the original amount borrowed. If you are applying for the nursing home loan which is Ancillary State Support, you will also need to include:
A copy of the terms and conditions of the life loan. The written consent of the loan provider to the creation of a second charge in favour of the HSE.An up-to-date statement, within the last six months on the amount owing on the life loan.Q: My father has benefited from the Fair Deal to partially pay his nursing home fees for three years this coming Easter.
My mother has a live-in 24/7 carer at home for more than three years now due to her disability. My parents’ bank account savings are depleting fast. By early this summer their income (pensions) will not cover all their weekly costs.
Can we get a review of the Fair Deal in light of their impending financial situation?
Answer: You can request another financial review 12 months after your last review. However, the HSE may review a financial assessment at any stage.
Disclaimer: The information in this article is intended as a general guide only. While every care is taken to ensure accuracy of information contained in this article, Aisling Meehan, Agricultural Solicitors and Tax Consultants does not accept responsibility for errors or omissions howsoever arising. E-mail aisling@agrisolicitors.ie
Aisling Meehan, agricultural solicitors and tax consultants.
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