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Irish Mirror
Irish Mirror
National
Edel Hughes

Stricter rules to be introduced for farmers and small business owners availing of Fair Deal nursing home scheme

Stricter rules on the succession of assets are set to be introduced as part of an overhaul of the Fair Deal nursing home scheme.

The scheme allows small farmers and business owners avail of State-subsidised care for elderly or ill relatives in nursing homes, however, they must also make hefty annual contributions.

The individual must also pay 80% of their income, usually from a pension, towards the cost of their care.

Currently, small businesses and farmers must set aside 7.5% of the value of their land every year to keep their loved's one nursing home place.

A new plan devised by Minister of State Jim Daly would see this capped at three years to reduce the pressure on cash-strapped families, the Irish Independent reports.

However, in order to be eligible, the farmer or business owner must have worked on the family farm or for the business for three out of the previous five years.

And before a nursing home place can be secured through the new scheme, a successor must agree to work on the farm or business for at least the next six years.

They will not have to work exclusively on the farm or business but should spend at least half their working time there.

If they fail to complete the six years of work, they must repay the entire State subsidy given towards the care of their family member as part of a "clawback" mechanism.

However, in cases where the nominated successor cannot work due to illness or death, families may appoint a new successor without incurring any fees.

This is meant to deter those who would try and cash in on their inheritance and help families in genuine need.

The reforms are likely to be welcomed by farmers and small business owners who have been lobbying for a "fairer deal".

But the six-year term is likely to cause concern as it will limit their ability to lease land or assets.

The heads of the bill will be brought before the Cabinet today but the necessary legislation will not be ready until at least the end of the year.

However, the capping benefits can be availed of by anyone whose family member is already in a nursing home or who enters care in coming months.

If a person has been living in a nursing home for a year already, their family will only have to pay the 7.5% levy for the next two years.

And if they have been in care for over three years, the 7.5% payment will not be required from now on.

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