Paul Kehoe (Wexford, Fine Gael)
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705. To ask the Minister for Health the way that inheritance that has been disclaimed by an applicant for the fair deal scheme is treated; if this can be disregarded and not treated as an asset for the purposes of a fair deal scheme means assessment; and if he will make a statement on the matter. [59382/22]

Mary Butler (Waterford, Fianna Fail)
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The Nursing Homes Support Scheme (NHSS), commonly referred to as Fair Deal, is a system of financial support for people who require long-term residential care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost. The Scheme aims to ensure that long-term residential care is accessible and affordable for everyone and that people are cared for in the most appropriate settings.

One of the key principles of the scheme is that nobody will pay more than the actual cost of their care, and a participant will only pay for the amount of time they actually spend in care.

Participants in the Scheme contribute up to 80% of their assessable income (40% in the case of a couple), such as their pension, and a maximum of 7.5% per annum of the value of assets held (3.75% in the case of a couple), such as their principal private residence or cash assets. All cash assets owned by a person are considered assessible under the scheme, with the exception of certain ex gratia payments from the state that are set out under the legislation.

The capital value of an individual’s principal private residence is only included in the financial assessment for the first three years of their time in care. This is known as the three-year cap, which is intended to protect the value of a principal private residence, along with the other safeguards built into the Financial Assessment which ensure that:

- Nobody will pay more than the actual cost of care; - A participant will keep a personal allowance of 20% of their income or 20% of the maximum rate of the State Pension (Non-Contributory), whichever is the greater, and; - If a participant has a spouse or partner remaining at home, they will be left with 50% of the couple’s income or the maximum rate of the State Pension (Non-Contributory), whichever is the greater

Transferred assets are also assessed, in the event that they were transferred less than five years prior to the date the person enters long term care. Under the Nursing Homes Support Scheme Act 2009, the legislation underpinning the scheme, a transferred asset is defined as an asset that has been transferred at any time in the period of 5 years prior to the date on which an application for State support is first made by or on behalf of that person.