Q. Our dad is 83 and in failing health. I have 5 siblings and while some of them are still affected by the recession, overall we do not have the money to maintain her at home. Our dad owns the house where he is living, worth about € 520,000, and while he does have savings ( about € 44,000 ) he is actually living on the State pension ( € 299.30 per week ) without having to dip into savings. Our mum died 5 years ago pensionless and we are worried that if dad avails of the Fair Deal scheme, he will lose everything. Have you any advice ? Mark – Drogheda Co Louth
A. The Fair Deal is actually quite a generous offer Mark. You hand over 80% of your dad’s income and pay 7.5% of all his assets EVERY year – the family home though is capped after 3 years ( so 22.5% of the value when first contract is signed generally repayable after his passing ) Outside of the home, all other assets are chargeable at 7.5% every year but there is an exemption of € 36,000 ( or € 72,000 if a couple ) meaning that your dad’s tax liability would be € 600 each year on his cash holdings ( € 44,000 less € 36,000 ) while his home is capped at € 117,000 ( 3 years @ 7.5% of the value of the home each year ) Meanwhile you could find out which of the family siblings have the strongest relationship with their bank and approach them with a request. Offering your dad’s home as security by way of equitable deposit of the title deeds, the bank could approve an overdraft guaranteed by the siblings if you wished to maintain your dad in the home. This is a time to assess and budget your dad’s needs – disabled bathroom downstairs, a bedroom move downstairs, the cost of two full time live-in nurses – night and day – including PRSI & USC on a monthly basis, and borrow on an annual basis repaying that overdraft when the inevitable happens. Cos he’s worth it !