Financial assessment: Your payment towards care
The financial assessment will work out how much you need to pay towards your nursing home care.
The amount you pay towards your nursing home fees depends on your:
- income (money you receive on a regular basis)
- assets (savings, investments and property)
If you have little income and assets, you pay less. If you have more, you pay more.
You must provide proof of income, assets and expenses with your application. For example:
- bank statements
- pension statements
- proof of social welfare payments
- deeds of property
The amount your nursing home charges does not matter. Your contribution will stay the same and we will pay the balance.
If you own assets such as property or land, 7.5% (3.75% if you are part of a couple) of their value will go towards the cost of your care each year.
How much you will need to pay
You will pay 80% (40% if you are part of a couple) based on your assessable income.
Assessable income is your total income minus allowable deductions. Income is any money you receive on a regular basis.
You will also pay 7.5% (3.75% if you are part of a couple) of your assets such as land or property. The first €36,000 (€72,000 if you are part of a couple) of your assets is excluded from the assessment.
If your assets include your land and property, you can defer paying the 7.5% contribution based on this by applying for an optional nursing home loan.
If you sell an asset, such as your home, after your first assessment the proceeds of the sale become a cash asset. The three-year cap will no longer apply. You will need to pay a contribution of 7.5% based on this cash asset.
You can request another financial review 12 months after your last review. However, the HSE may review a financial assessment at any stage.
You must tell the Nursing Homes Support Scheme Office about any sale. You must do this within 10 working days of the sale. This is so we can carry out a new assessment of the amount you pay.
Income, assets and deductions
You will need to tell us about regular income and any property you own. If we don’t have all this information your application will be delayed.
We look at both you and your partner’s income. This includes:
- social welfare benefits and allowances
- rental income
- income from holding an office or directorship
- income from fees, commissions, dividends or interest
- income you deprived yourself of in the 5 years before your application
The assessment won't include your relatives' or children's income. It will include your partner's income.
Assets include, but are not limited to, property, investments, money owed to another person (which is repayable) and cash. This includes assets outside Ireland.
Two types of assets are considered:
- cash assets
- non-cash assets
Cash assets include:
- savings and deposits including those with banks, credit unions or post offices
- stocks, shares, bonds, securities and other financial instruments
- approved retirement funds (value of fund at date of application)
- money loaned by you to another person
- cash assets transferred to another person within the last 5 years
Non-cash assets include:
- your home, if you own or part-own it
- any property you own
- any land you own
- overseas land and property
The financial assessment includes any assets you have transferred:
- in the 5 years before the date of your first application
- on or after the date of your first application
If you have given any land, property or money to another person in the last 5 years, you will need to tell us. You will also need to tell us if you transfer any property, money or land after you make an application.
Deductions you can subtract from your total income during the financial assessment:
- Income tax, PAYE, Universal Social Charge and PRSI
- Health expenses (GP visits, prescription charges, medicines and medical expenses after tax refund).
- Maintenance payments to other people.
- Interest on loans on your home.
- Levies required by law to pay such as property tax.
- A dependent child in full-time education.
The National Treatment Fund has agreed on maximum prices with all registered nursing home. You can see the maximum prices of approved nursing homes here (this is not the amount you will pay):
A person will contribute 7.5% of the value of assets each year towards the cost of your care.
The main property where you live will only be included in the financial assessment for 3 years while in care. This is known as the 22.5% or 'three-year cap'.
After 3 years you will not pay anymore based on the value of your home. This will apply even if you are still getting long-term nursing home care.
The three-year cap applies whether you choose to take out a nursing home loan or not.
Couples and the 'three-year cap'
You will pay a 3.75% contribution based on your main home for a maximum of 3 years. Your total contribution over the 3 years is capped at 11.25% of the property's value.
If both partners are in care the total contribution is capped at 22.5%.
A spouse or partner of an applicant can apply to defer repaying loan until their death.
The assessment includes your other assets for as long as you are in care.
Farmers and business owners
If you own a farm or business, the ‘three-year cap' will also apply to you if you fulfil all of the following:
- Have suffered a sudden illness or disability which causes you to need long-term care.
- You or your partner ran the farm or business up until the time of the sudden illness or disability.
- A family successor certifies that he or she will continue the management of the farm or business.
This is to make sure family farms and businesses can continue in business if you suffer a sudden illness.
If you sell your home, farm or business before or after the 'three-year' cap has expired
If you sell an asset that was subject to the 'three-year' cap at any stage, the money of the sale becomes assessable as part of cash assets.
You must tell the Nursing Homes Support Scheme Office about any sale. You must do this within 10 working days of the date of the sale. This is so we can carry out a new assessment of your weekly contribution.
Couples and the financial assessment
If you have a spouse or partner, the financial assessment will look at both your incomes and assets.
A couple is:
- a married couple
- an opposite or same-sex couple who are living together as life partners for at least three years
When you are part of a couple applying for Fair Deal, half of the couple's total income will be assessed.
If a couple’s income is €600 per week, the assessment of the person needing care would be based on 50% of €600, or €300. In other words, we would consider the person needing care to have a total income of €300 per week.
Couples and applying for a nursing home loan
All of the couple's assets are assessed. Both partners are required to sign the application form if applying for a nursing home loan.
If either partner has reduced capacity to make decisions the other partner will need to be either a:
- care representative (a person appointed by Circuit Court)
- Ward of Court (a person appointed by Office of Ward of Courts)
- a holder of a registered enduring power of attorney (chosen to act on behalf of another person)
A registered enduring power of attorney needs to be in place before the applicant becomes unable to make decisions.
Reassess your payment
You can ask to reassess the payment amount every 12 months.