Peter, a bachelor farmer from Co. Mayo, has turned 70 years of age and is thinking about handing on the farm to the next generation.
Peter is unclear about a number of issues:
There are a lot of dos and don’ts when it comes to farms. No two farms are the same so the advice that we would give to Peter will not be the same advice as what is required in your situation.
When deciding whether to consider a nursing home for your relative the important thing to understand is that the HSE will work out a financial contribution that he must pay based upon his income and assets. Check with local nursing homes to determine the weekly cost of care and multiply that by 52 weeks to get the annual cost of care.
He will have to pay 80% of his income annually which includes State pension and private pensions; rental and other income with some allowable deductions such as health expenses and property tax. The HSE will deduct €36,000 from the total assets for a single person such as Peter.
He will also have to pay 7.5% on the value of his assets annually for the duration of his stay in the nursing home. This means cash assets in the form of savings, shares, money owed to him and non cash assets like property including the family home, farm business.
The family home is only assessed for the first three years of Peter’s stay in the nursing home. This does not apply to other property.
The Government has approved the General Scheme of a Bill in relation to the Treatment of Family Farms and Business Assets under Fair Deal which sets out conditions that need to be met in order to qualify for a three year cap on the value of the farm. The situtation is under review and the conditions are strict with a view to the farm continuing to being worked by the immediate family. Not every farm situation will qualify for the three year cap.
The HSE will take into account and clawback assets transferred in the last 5 years and this includes cash gifts and non cash assets.
It is possible to apply to the HSE for an ancilliary loan during the intial application stage or antyime when the resident is in a nursing home.
To get an idea of how much your relative will have to pay in Year 1 check out our Fair Deal Calculator. A single person is assessed on the basis of their assets whereas a couple who have been living together for more than 3 years will be assessed on the basis of all of their assets .
For more detail about your relative’s situation contact Emer Lavin today who will give you information about The Fair Deal Scheme, and help you to assess whether it is the best option for your relative.
Disclaimer: In order to maintain the anonymity of past clients, Emer has changed identifiable characteristics and details (e.g. names, occupations, places of residence etc.) from their stories above.
Want to have a quick chat with Emer to briefly discuss YOUR issue? Then simply request a callback below.
Thinking of applying for the Fair Deal Scheme?
Carry out a basic simulated financial assessment with us online to see what it will cost you.*
I came across this website while researching the Fair Deal Scheme for my elderly mother and this was the only place I could see to find some independent advice. Our discussion was useful to clarify the issues in my mind about meeting this cost. I do think it would be useful for people to be made aware of the issues involved so that they may be in a better position to deal with this type of situation.
My father transferred the farm to me in 2016. We are worried in case the Fair Deal tries to take the farm. Emer explained the process and we know what to do now. We were very happy with the service.
I wanted to know about the Fair Deal for my husband who has dementia. I found the application form very complicated. They were asking for an awful lot of information and copies of documents. Emer explained the system to us in a straightforward way so that we understood what we were getting ourselves into. I cannot recommend her highly enough.
Our mother is currently in hospital and the staff are putting pressure on us to make a decision about the Fair Deal because they need the bed. We spoke to Emer because we were not sure whether or not it was a good idea to go into the Fair Deal or to pay privately. Emer explained how the Fair Deal works and gave us the tools to deal with the hospital.
We were exhausted trying to look after our mother who has dementia. Until recently our father was her carer but now he too is showing signs of slowing down. We looked at the Fair Deal scheme but could not figure out what was the best thing to do. We were at breaking point when we spoke to Emer and she helped us to understand what is involved in the Fair Deal scheme and how much it will cost. We would recommend her to anyone in a similar situation.
My father was adamant that he did not want to go into a nursing home. We are currently paying a carer to live in and we just wanted to know how the cost of homecare compares with the Fair Deal Scheme. We had tried to research it ourselves and were delighted to find Emer online. Emer explained the costs involved and we are hoping to make a decision soon about what to do.”