Nursing Homes Support Scheme Act 2009
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SCHEDULE 1 Assessment of Means | ||
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PART 1 | ||
Assessment of means of a person who is not a member of a couple | ||
1. The means of a person who is not a member of a couple shall, subject to Part 3, be assessed on the basis of the rules in this Part. | ||
Assessment of income | ||
2. Assess the weekly income following the directions at steps A to E: | ||
A. Establish the annual income of the person using the definition of “income”. | ||
B. Deduct allowable deductions. | ||
C. Divide amount produced by step B by 52 to establish net weekly income. | ||
D. Take 80 per cent of amount produced by step C (net weekly income) which amount, unless step E applies, is the weekly assessed income. | ||
E. Where applying the rule in step C produces a result whereby 20 per cent of net weekly income is less than the minimum retained income threshold, the weekly assessed income is the amount established by step C less the minimum retained income threshold. | ||
Assessment of cash assets | ||
3. Assess the weekly value of the cash assets by following the directions at steps A to F: | ||
A. Establish all the cash assets of the person being assessed using the definition of “cash assets” and value each cash asset on the basis of the estimated market value. | ||
B. Deduct from the estimated market value of each cash asset the amount of allowable deductions relating to that cash asset to produce the net value of each cash asset. | ||
C. Aggregate all net values of cash assets established under step B. | ||
D. Deduct general assets deductible amount from the amount produced by step C to produce annual assessed cash assets. | ||
E. Take 5 per cent of the amount produced by step D to establish the amount of the annual assessed cash assets. | ||
F. Divide amount produced by step E by 52 to produce weekly assessed cash assets. | ||
Assessment of relevant assets | ||
4. Assess the weekly value of the relevant assets by following the directions at steps A to F: | ||
A. Establish all assets which are relevant assets using the definition of “relevant assets” of the person being assessed and value each relevant asset on the basis of the estimated market value. | ||
B. Deduct from the estimated market value of each relevant asset the amount of allowable deductions relating to that relevant asset to produce the net value of each relevant asset. | ||
C. Aggregate all net values of relevant assets to produce total net value of relevant assets. | ||
D. If the general assets deductible amount has not been fully used in connection with the cash assets assessment apply unused balance by deducting the unused amount from total net value of relevant assets produced by step C. | ||
E. Take 5 per cent of the amount produced by step D or, if step D does not apply, by Step C to produce the annual assessed relevant assets amount. | ||
F. To establish assessed weekly value of relevant assets divide result of step E by 52. | ||
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PART 2 | ||
Assessment of means of a person who is a member of a couple | ||
1. The means of a person who is a member of a couple shall, subject to Part 3, be assessed on the basis of the rules in this Part. | ||
Assessment of income | ||
2. Assess the weekly income by following the directions at steps A to F: | ||
A. Establish the annual income of the person and his or her partner using the definition of “income”. | ||
B. From the annual income of each of those persons deduct allowable deductions applicable to that person’s income to establish net annual income of each member of the couple. | ||
C. Aggregate the two net annual incomes established under step B. | ||
D. Divide amount produced by step C by 52 to establish net weekly income. | ||
E. Take 40 per cent of amount produced by step D and the amount established following that calculation is, unless step F applies, the weekly assessed income. | ||
F. Where applying the rule in step E produces a result whereby 60 per cent of net weekly income is less than the minimum retained income threshold, the weekly assessed income is the amount established by step D less the amount which is the minimum retained income threshold. | ||
Assessment of cash assets | ||
3. Assess the weekly value of the cash assets by following the directions at steps A to G: | ||
A. Establish all the cash assets of the person to whom the assessment relates and his or her partner using the definition of “cash assets” and value each cash asset on the basis of the estimated market value. | ||
B. Deduct from the estimated market value of each cash asset the amount of allowable deductions relating to that cash asset to produce net value of each cash asset. | ||
C. Aggregate all net values of cash assets established under step B. | ||
D. Deduct general assets deductible amount from the amount produced by step C to establish total assessed cash assets. | ||
E. Take 5 per cent of the amount produced by step D to establish the amount of the annual assessed cash assets of the couple. | ||
F. Divide amount established by step E by 2 to establish the amount of the annual assessed cash assets of the person in respect of whom the financial assessment is being carried out. | ||
G. Divide amount established by step F by 52 to produce the assessed weekly cash assets of the person in respect of whom the financial assessment is being carried out. | ||
Assessment of relevant assets | ||
4. Assess the weekly value of the relevant assets by following the directions at steps A to G: | ||
A. Establish all assets which are relevant assets of the person in respect of whom the financial assessment is being carried out and his or her partner using the definition of “relevant assets” and value each relevant asset on the basis of estimated market value. | ||
B. Deduct from the estimated market value of each relevant asset the amount of allowable deductions relating to that relevant asset to produce the net value of each relevant asset. | ||
C. Aggregate all net values of relevant assets established under step B. | ||
D. If the general assets deductible amount has not been fully used in connection with the cash assets assessment then apply the unused balance by deducting the unused amount from the amount established by step C. | ||
E. Take 5 per cent of the amount established by step D or, if step D does not apply, by Step C to establish the annual assessed relevant assets amount. | ||
F. Divide amount established by step E by 2 to establish the amount of the annual assessed relevant assets of the person in respect of whom the financial assessment is being carried out. | ||
G. Divide the amount established by step F by 52 to produce the assessed weekly value of relevant assets of the person in respect of whom the financial assessment is being carried out. | ||
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PART 3 INTERPRETATION AND MISCELLANEOUS | ||
1. In this Schedule— | ||
“allowable deduction”— | ||
(a) subject to paragraph 2 , in relation to income, means— | ||
(i) income tax required by law to be deducted or paid from the income and in respect of which (other than as respects payments or expenses to which clauses (iv), (v) or (vi) refer) the applicant or any other person is not entitled to claim an exemption, relief or allowance or the repayment of tax already paid, | ||
(ii) social insurance contributions, | ||
(iii) levies required by law to be paid, | ||
(iv) payments which— | ||
(I) are paid in respect of interest on monies borrowed for the purchase, repair or improvement of the principal residence of the person, or | ||
(II) are paid in respect of rent on the principal residence of the person concerned under an agreement entered into at arm’s length if, and only for so long as, there resides therein the person’s partner or a child under the age of 21 years of the person or the person’s partner, | ||
less the amount of any relief from income tax which may be claimed in respect of such payments, | ||
(v) health expenses to which section 469 of the Taxes Consolidation Act 1997 applies, less the amount of any relief from income tax which may be claimed by the applicant, the spouse of the applicant or a relative, but for the purposes of this subparagraph any payments made by a person in respect of care services shall not be included, | ||
(vi) payments made in respect of the maintenance of a child, a spouse or a former spouse under a separation agreement or pursuant to an order of a court of competent jurisdiction, less the amount of any relief from income tax which may be claimed in respect of such payments, | ||
(vii) such other deduction as may be prescribed, under regulations made under section 36 , for the purposes of this paragraph; | ||
(b) subject to paragraphs 3 and 4, in relation to cash assets, means borrowings incurred specifically for the purchase of the asset concerned to the extent that such amount has not been repaid and in respect of which borrowings the Executive is satisfied that the purpose of incurring the borrowings was for the purpose of acquiring the asset concerned, and | ||
(c) subject to paragraphs 3 and 4, in relation to relevant assets, means borrowings incurred specifically for the purchase, repair or improvement of the relevant asset concerned to the extent that such amount has not been repaid, and in respect of which borrowings the Executive is satisfied that the purpose of incurring the borrowings was for the purpose of the purchase, repair or improvement of the relevant asset concerned; | ||
“assessed weekly means” means the aggregate of— | ||
(a) weekly assessed income, | ||
(b) weekly assessed cash assets, and | ||
(c) assessed weekly value of relevant assets, | ||
computed in accordance with, as appropriate, Part 1 or Part 2 of this Schedule; | ||
“business” means a business carried on in the exercise of a trade, profession or vocation, but does not include a business carried on otherwise than for gain; | ||
“cash assets” means— | ||
(a) monies, whether held as currency or in an account with a financial institution, | ||
(b) monies lent to another person which are repayable, | ||
(c) shares, stocks, bonds, securities, and other financial instruments, and | ||
(d) a transferred asset which is a cash asset, | ||
in which in the case of an asset referred to in paragraphs (a) to (c) the person concerned has a beneficial interest and in the case of an asset referred to in paragraph (d) the person concerned had a beneficial interest; | ||
“estimated market value” means— | ||
(a) subject to paragraphs (b) and (c), the price the asset concerned would fetch on the open market on the date on which the application for State support is made subject to such conditions as might reasonably be calculated to obtain for the vendor of the asset the best price of the asset, | ||
(b) in the case of a cash asset which comprises monies, the amount of such monies, converted to the currency of the State in the case where such monies are not held in the currency of the State, at the official conversion rate specified by the Central Bank of Ireland on the date the application for State support is made, and | ||
(c) in the case of an asset not situated in a place the currency of which place is the currency of the State, by converting the value of such asset in the currency of the place where the asset is situated into the currency of the State at the official conversion rate specified by the Central Bank of Ireland on the date the application for State support is made; | ||
“family successor” means a partner or relative of the person applying for State support, which person, at the time of the application for State support— | ||
(a) in the case of a farm, regularly and consistently applies a portion of his or her working day in farming the farm, or | ||
(b) in the case of a business, regularly and consistently applies a portion of his or her working day in the carrying on of the relevant business; | ||
“farm” means agricultural land, pasture and woodland, crops, trees and underwood growing thereon, farm buildings appropriate to the property and farm machinery, livestock and bloodstock thereon but excluding all residential property; | ||
“farming” includes dairy farming, livestock production, and the cultivation of grass, tillage, and other crops, including horticultural crops whether under protected cropping conditions or in the open; | ||
“general assets deductible amount”— | ||
(a) in the case of a person who is not a member of a couple, means— | ||
(i) €36,000, or | ||
(ii) the amount prescribed, under regulations made under section 36 , for the purposes of this subparagraph, | ||
whichever is the greater, and | ||
(b) in the case of a couple, means— | ||
(i) €72,000, or | ||
(ii) the amount prescribed, under regulations made under section 36 , for the purposes of this subparagraph, | ||
whichever is the greater; | ||
“income” means— | ||
(a) income from an employment, trade, profession or vocation, | ||
(b) rental income whether arising in the State or otherwise, | ||
(c) income from holding of an office or directorship, | ||
(d) income from a pension (whether under the social welfare code or otherwise), | ||
(e) income whether in the nature of a benefit or allowance arising from social welfare, social insurance or other sources of a similar character, | ||
(f) income from fees, commissions, dividends, interest, or income of a similar character, | ||
(g) payments under a settlement, covenant, estate or a payment in respect of maintenance, | ||
(h) income from royalties and annuities, | ||
(i) transferred income of a character described in paragraphs (a) to (h), and | ||
(j) such other forms of benefit as may be prescribed, under regulations made under section 36 , for the purposes of this paragraph, | ||
whether in money or monies worth and arising within the State or otherwise; | ||
“minimum retained income threshold” means— | ||
(a) for the purposes of the assessment of a person who is not a member of a couple, 20 per cent of the maximum weekly amount of State pension (Non-Contributory) at the date of the application for State support, | ||
(b) for the purposes of the assessment of a couple, the maximum weekly amount of State pension (Non-Contributory) together with 20 per cent of the maximum weekly amount of State pension (Non-Contributory) at the date of the application for State support; | ||
“principal residence” means the principal private residence of a person and includes land which the person has for his or her own occupation and enjoyment with that residence as its garden or grounds up to an area (exclusive of the dwelling house) not exceeding one acre; | ||
“relevant assets” means all forms of property whether situated in the State or not other than cash assets, including, options and incorporeal property generally in which the relevant person has a beneficial interest including transferred assets which would have been relevant assets if not transferred; | ||
“relevant business” means— | ||
(a) the business or an interest in a business carried on by a sole trader or by a partnership, including any land, building, machinery or plant used wholly or mainly for the purpose of the business, or | ||
(b) the unquoted shares in or securities of a company carrying on a business in which the applicant or his or her partner has until the onset of the sudden illness or disability which caused that person to require care services been actively involved in carrying on the business; | ||
“transferred asset” means an interest of the person in an asset (whether a cash asset or a relevant asset) which 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 which transfer is made— | ||
(a) for no consideration, | ||
(b) for nominal consideration, or | ||
(c) for consideration which is less than 75 per cent of the estimated market value of the interest of the person in the asset at the time of the transfer but does not include the transfer of an asset made in respect of the settlement of any claim made in respect of the maintenance of a child or other matrimonial proceedings, and that the Executive is satisfied that such transfer was made for that purpose, | ||
and the estimated market value of a transferred asset shall be determined on the basis of the value of the asset at the time of the transfer, and where the asset comprises monies not being in the currency of the State, or other assets held in a place outside the State, the currency of which is not the currency of the State, converted into the currency of the State at the date of the transfer of the asset concerned; | ||
“transferred asset value”, in relation to a transferred asset, means the amount calculated by the application of the following formula: | ||
MV - CR | ||
where— | ||
MV is the estimated market value of the asset concerned at the time of the transfer, | ||
CR is the amount of the consideration received by the person or the estimated market amount of the consideration received by the person (whichever is the higher); | ||
“transferred income” means any income which the person whose means is being assessed would have been entitled to receive in the assessable period, but which by reason of a particular action having been taken by or on behalf of that person, a person other than the person whose means are being assessed has received, is receiving or will receive an amount of money or monies worth (whether by way of a single payment or a series of payments) and which action by the person whose means are being assessed occurred within 5 years of the date of first application for State support but does not include payments made in respect of the maintenance of a child, a spouse or a former spouse under a maintenance agreement, a separation agreement or pursuant to an order of a court of competent jurisdiction; | ||
“unquoted” in relation to any shares or securities, means not quoted on a recognised stock exchange. | ||
2. In relation to the definition of “allowable deduction”, as respects income, a deduction shall be allowed in respect of either paragraph (a)(iv)(I) or paragraph (a)(iv)(II) of that definition, but not both. | ||
3. Where in relation to a cash asset or a relevant asset a deduction is claimed as an allowable deduction by reason of borrowings relating to such asset as permitted by paragraphs 3 and 4 of Part 1 or Part 2, an allowance in respect of such borrowings may not be given where to do so would permit a deduction in relation to the same indebtedness more than once. | ||
4. Where in relation to a cash asset or a relevant asset a deduction is claimed as an allowable deduction by reason of borrowings relating to such asset as permitted by paragraphs 3 and 4 of Part 1 or Part 2, and such indebtedness applies to more than one person whether jointly or severally, the amount of such indebtedness which may be allowed as an allowable deduction shall be proportionate to the proportion of the value of the interest of the person in respect of whom the financial assessment is being carried out bears to the estimated market value of the entire asset concerned. | ||
5. It shall be presumed, unless the Executive is satisfied that it is not the case, that where there is more than one person with an interest in an asset that each owner has an equal interest in the asset concerned. | ||
6. The interest of a person in a principal residence, or in a transferred asset which qualifies as a principal residence, shall not be or shall cease to be a relevant asset where the person concerned is receiving or has received— | ||
(a) care services, | ||
(b) transitional care services within the meaning of section 13 , | ||
(c) services in a nursing home which services would, if they had been provided after the coming into operation of the definition of “approved nursing home”, have come within the meaning of the definition of “long-term residential care services”, or | ||
(d) any combination of the services referred to in paragraphs (a) to (c), | ||
for a period of 3 years (which period need not be continuous). | ||
7. Subject to paragraphs 8 and 9, the interest of a person in a farm or relevant business shall not be or shall cease to be a relevant asset where the person concerned is receiving or has received— | ||
(a) care services, | ||
(b) transitional care services within the meaning of section 13 , | ||
(c) services in a nursing home which services would, if they had been provided after the coming into operation of the definition of “approved nursing home”, have come within the meaning of the definition of “long-term residential care services”, or | ||
(d) any combination of the services referred to in subparagraphs (a) to (c), for a period of 3 years (which period need not be continuous). | ||
8. Paragraph 7 shall not apply unless— | ||
(a) the person receiving care services has suffered a sudden illness or disability which caused that person to require care services, and | ||
(b) a substantial part of the working day of the person requiring care services or his or her partner was regularly and consistently applied to the farming of the farm or carrying on of the relevant business until the onset of the sudden illness or disability, and | ||
(c) a family successor certifies in writing that he or she will on a consistent and regular basis apply a substantial part of his or her working day to the farming of the farm or carrying on of the relevant business. | ||
9. Paragraph 7 shall apply to a relevant asset which is a transferred asset and which is a farm or relevant business. | ||
10. (a) Subparagraph (b) applies only in a case where the person (“relevant person”) was a member of a couple, and— | ||
(i) the other member of the couple (“other member”) received both services of any kind referred to in paragraph 6 and financial support, and | ||
(ii) the principal residence concerned is the same principal residence as the principal residence assessed under the financial assessment of the other member. | ||
(b) The total of the amounts of the weekly assessed means under this Act which relate to the principal residence, arising pursuant to the financial assessment relating to the other member and the financial assessment relating to the relevant person, when aggregated, shall not exceed the amount which is 15 per cent of the estimated market value of that residence at the date of valuation of the asset in connection with the first financial assessment of the relevant person less allowable deductions applicable to that asset, and on that threshold being reached, notwithstanding any other provision of this Schedule the asset shall cease to be a relevant asset. | ||
11. Where in relation to a person an asset is a transferred asset such asset shall not cease to be a transferred asset where— | ||
(a) the person makes a subsequent application for State support, or | ||
(b) a review is carried out under this Act of the means of the person or his or her partner, | ||
by reason of the date of such subsequent application or review being more than 5 years after the transfer of the asset occurred. |