Changes to the Fair Deal Scheme

28 March 2024

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Just a quick reminder to some of key changes to the fair deal scheme which have come into effect over the last number of years

Care Representative

With the advent of the Assisted Decision-Making (Capacity) Act 2015, the ability to appoint a care representative has been removed and now replaced with a DMR under the 2015 Act;

Expanding the three-year cap

The three-year cap applies not only to the applicant’s home, but also to the sale proceeds of the applicant’s home and also certain farms/businesses. For a farm/business to qualify for the three-year cap, the following conditions must apply

  • The applicant must make an application to the office processing the fair deal to appoint a family successor who will commit to running the farm or business for at least 6 years
  • The relevant farm or business must have been actively run by the applicant, the applicant’s spouse/partner or the proposed family successor for at least 3 of the last 5 years prior to entering long term care
  • A charge in favour of the HSE will be placed on the chargeable property of a business or farm.

Exempt Income

From the 1st of February 2024 the entire income derived from the rental of the principal private residence will not be taken into account as part of the income assessment.

If you haven’t done so already and need a good, concise and thorough overview of the fair deal scheme, then one should read Elaine Byrne’s excellent article in the Law Society’s Jan/Feb Gazette ( pp 24-29).

Hope this helps and if you have any probate, inheritance tax or capacity issues, please do not hesitate to email me at colm@theprobatehub.ie or make an enquiry on the website.