Changes to the Fair Deal scheme bring more balance
- Addressing nursing home costs is one of the more problematic issues in a farm succession.
- Under previous legislation the maximum period an asset, such as a family farm, can be assessed as a relevant asset for the computation of the personal contribution to the cost of nursing home care was set to three years.
- Under the original, and current amended draft, the retired farmer is deemed to continue to own the farm for five years after the farm is gifted to a successor, and potentially deemed to own the farm indefinitely if they enter care within that five year period.
- A family successor must be over 18 years of age and can be a spouse/partner, son-in-law, daughter-in-law or relative. A relative means a parent, step-parent, child, grandchild, brother, step-brother, sister, step-sister, uncle, aunt, nephew or niece of the person requiring care.
- The new legislation is more balanced.
Michael Fitzgerald is a regional tax manager with FDC Bandon.