Five Tips for a Successful Fair Deal Application – 2024 Update
1. Full Disclosure of Assets is Crucial
When submitting a Fair Deal application, it’s vital to provide an accurate list of your assets. This includes all bank statements and financial information. If you omit any accounts during the application process, it could come back to haunt you later. Upon your passing, the Revenue will provide details of your financial affairs during probate to the HSE (Health Service Executive), which manages the Fair Deal scheme. They can and will reassess your application posthumously and may claw back funds from your estate if discrepancies are found.
2. Five-Year Clawback Rule
If you’re thinking of reducing your assets to benefit more from the Fair Deal scheme, be mindful of the five-year clawback rule. Any financial transfers, gifts, or asset reductions within five years of applying can still be assessed and reversed to ensure you’re not artificially lowering your assets for a higher subsidy. Planning ahead is crucial; if you wish to transfer assets, ensure it’s done well before the five-year window.
3. No Penalty for Selling Your Home While in Care
As of 2021, selling your home while in a care facility no longer triggers a reassessment of your assets. This is a significant change, as before 2021, receiving a lump sum from the sale of your home could result in having to pay more towards your care costs. Now, you can sell your house and not worry about financial penalties or reassessment for the Fair Deal scheme.
4. Delays in Beneficiary Payments Due to HSE Clearance
Once you’ve passed away, your estate cannot be distributed to beneficiaries until the HSE gives clearance. This process can delay the winding-up of your estate. The clearance process is handled by the Tullamore office of the HSE, which collaborates with Revenue for detailed information about your estate. Patience is key, as this process can take some time.
5. Consider Paying for Care Directly if You Have Sufficient Savings
In some cases, it may be more beneficial to use your savings to pay for nursing care directly rather than applying for the Fair Deal scheme. Particularly in times when there is a shortage of care home spaces, cash clients may be prioritised. Additionally, depleting your savings before applying can prevent the HSE from taking a portion of your estate later.
Conclusion
Navigating the Fair Deal application process requires careful consideration and long-term financial planning. Full transparency and understanding of the rules, particularly the five-year clawback and estate clearance process, are essential for a smooth experience. Where possible, seeking professional advice can ensure your estate and assets are managed optimally for your specific circumstances.