Some people think that the Fair Deal Scheme is fair because they don’t have any assets or income except for the pension and so they don’t have to pay for their nursing home care.
It is ironic that we are told all our lives to buy a house and save money so that we can look after ourselves in our old age. The paradox at the heart of the Fair Deal Scheme is that the more you have, the more you pay.
It might occur to you to transfer your assets to a relative in order to avoid paying for Fair Deal but that only works if you already transferred your assets five years ago.
People don’t like planning ahead in relation to these issues, probably because they don’t like thinking about their own demise. But that is exactly the thing to do if you want to be smart about your future care.
Ultimately the Fair Deal Scheme takes a percentage of your income and assets. Some people have a high level of income (eg. pensions, rental income, dividends) whereas others have considerable assets. Assets include savings, the family home, holiday homes, inherited property or a business. Those who can afford it will pay more.
If you live in a very expensive home but you have little income then you may not have enough money to pay for your nursing home care. In such circumstances you may wish to apply for an Ancillary loan on the property that you own in order to finance your care. This loan is repayable after your death.
If you would like to know more about the Fair Deal Scheme and/or the ancillary loan please go to www.emerlavineldercare.ie to book a consultation today.