Three years ago our mother went into a nursing home under the Fair Deal scheme. She had some savings in the credit union at the time, which was counted in her financial assessment. We’ve been using that to help cover her share of the fees along with her pension, but that savings pot is nearly gone now.
I heard if a person’s assets reduce while they’re in care, the HSE might increase their contribution and reduce the family’s payment. Is that true? And if so, what’s the best way to go about it?
ANSWER: You’re right to look into this, and you’re not the first family to find themselves in this position. The answer is yes, you can ask for a review of your mother’s contribution.
The Fair Deal, or Nursing Homes Support Scheme, is supposed to be exactly that – fair. It’s designed to share the cost of care between the individual and the State in proportionate to what they can afford. However, the HSE will not automatically adjust your mother’s contribution – you have to ask.
How the Fair Deal works
The HSE’s assessment for the Fair Deal, which your mother would have undergone, looks at two things:
• Income: You pay 80% of this each year – for example, state pension or any private pensions.
• Assets: These include land, property, and cash (like savings accounts). The person is expected to contribute 7.5% of the value of their assets per year, for as long as they are in care.
But here is where it gets important for your case.
The €36,000 Disregard
There’s a €36,000 asset disregard for single individuals. That means the first €36,000 of your mother’s savings or other assets are not counted when working out her contribution.
If her savings have been used up over time – as they often are – and she now has less than €36,000 in total, she should no longer be paying anything based on assets. In that case, her only contribution should be 80% of her income, like her pension.
But again, the HSE won’t know unless you tell them.
What you need to do
Whoever is acting on your mother’s behalf should write to the Fair Deal office in your region and ask for a Review of Financial Assessment.
It is important to include:
• Your mother’s name and PPS number.
• The nursing home details.
• An explanation that her assets have reduced and are now below €36,000.
• A recent credit union or bank statement showing the current balance.
The HSE team will review her file and, if the new figures show she is below the threshold, the contribution will be adjusted accordingly.
Solicitor or accountant?
You don’t usually need a solicitor or accountant. Most families can handle this themselves with a well-written letter and up-to-date documents. However, if there’s land involved, or transfers or gifts within the last five years, it’s worth getting advice.
Land and the three-year cap
For farmers, if your parent’s home or land was part of the financial assessment, there’s a separate rule called the three-year cap. This limits the contribution on the family home or farm to 7.5% per year for a maximum of three years – but only if certain conditions are met.
For the family farm to qualify, it usually needs to be passed on to a qualified family successor who farms it for at least six years. If that was done, great – but if not, the HSE might still be assessing the land each year. Again, ask for a review and check if a transfer now could help lock in that cap going forward.
It’s one of those areas where farming families often lose out, simply because no one told them they needed to take action.
What if the savings were used?
Using savings on nursing home fees is expected under the scheme. The only time a red flag goes up is if money was gifted away to children or others in the last five years – that can still be counted as part of the assessment.
But paying for care with your own money is fully allowed, and once those assets fall under €36,000, that asset-based contribution should stop.
Your mother has already paid her fair share – and if her savings have now dipped below the €36,000 threshold, the State should step in to cover more.
So sit down, write that letter to the Fair Deal office, include a bank or credit union statement, and post it off. You’re doing right by your mother – and by your family.
Marty Murphy, head of tax with ifac.
Marty Murphy is head of tax at ifac,
which is the professional services firm for farming, food and agribusinesses.
Three years ago our mother went into a nursing home under the Fair Deal scheme. She had some savings in the credit union at the time, which was counted in her financial assessment. We’ve been using that to help cover her share of the fees along with her pension, but that savings pot is nearly gone now.
I heard if a person’s assets reduce while they’re in care, the HSE might increase their contribution and reduce the family’s payment. Is that true? And if so, what’s the best way to go about it?
ANSWER: You’re right to look into this, and you’re not the first family to find themselves in this position. The answer is yes, you can ask for a review of your mother’s contribution.
The Fair Deal, or Nursing Homes Support Scheme, is supposed to be exactly that – fair. It’s designed to share the cost of care between the individual and the State in proportionate to what they can afford. However, the HSE will not automatically adjust your mother’s contribution – you have to ask.
How the Fair Deal works
The HSE’s assessment for the Fair Deal, which your mother would have undergone, looks at two things:
• Income: You pay 80% of this each year – for example, state pension or any private pensions.
• Assets: These include land, property, and cash (like savings accounts). The person is expected to contribute 7.5% of the value of their assets per year, for as long as they are in care.
But here is where it gets important for your case.
The €36,000 Disregard
There’s a €36,000 asset disregard for single individuals. That means the first €36,000 of your mother’s savings or other assets are not counted when working out her contribution.
If her savings have been used up over time – as they often are – and she now has less than €36,000 in total, she should no longer be paying anything based on assets. In that case, her only contribution should be 80% of her income, like her pension.
But again, the HSE won’t know unless you tell them.
What you need to do
Whoever is acting on your mother’s behalf should write to the Fair Deal office in your region and ask for a Review of Financial Assessment.
It is important to include:
• Your mother’s name and PPS number.
• The nursing home details.
• An explanation that her assets have reduced and are now below €36,000.
• A recent credit union or bank statement showing the current balance.
The HSE team will review her file and, if the new figures show she is below the threshold, the contribution will be adjusted accordingly.
Solicitor or accountant?
You don’t usually need a solicitor or accountant. Most families can handle this themselves with a well-written letter and up-to-date documents. However, if there’s land involved, or transfers or gifts within the last five years, it’s worth getting advice.
Land and the three-year cap
For farmers, if your parent’s home or land was part of the financial assessment, there’s a separate rule called the three-year cap. This limits the contribution on the family home or farm to 7.5% per year for a maximum of three years – but only if certain conditions are met.
For the family farm to qualify, it usually needs to be passed on to a qualified family successor who farms it for at least six years. If that was done, great – but if not, the HSE might still be assessing the land each year. Again, ask for a review and check if a transfer now could help lock in that cap going forward.
It’s one of those areas where farming families often lose out, simply because no one told them they needed to take action.
What if the savings were used?
Using savings on nursing home fees is expected under the scheme. The only time a red flag goes up is if money was gifted away to children or others in the last five years – that can still be counted as part of the assessment.
But paying for care with your own money is fully allowed, and once those assets fall under €36,000, that asset-based contribution should stop.
Your mother has already paid her fair share – and if her savings have now dipped below the €36,000 threshold, the State should step in to cover more.
So sit down, write that letter to the Fair Deal office, include a bank or credit union statement, and post it off. You’re doing right by your mother – and by your family.
Marty Murphy, head of tax with ifac.
Marty Murphy is head of tax at ifac,
which is the professional services firm for farming, food and agribusinesses.
SHARING OPTIONS