Agriculture sector: careful planning is required to beat a fair deal of ‘catch-22’ farm families

  • Agriculture sector: careful planning is required to beat a fair deal of ‘catch-22’ farm families
    FarmIreland.t. E.
    The government approved the proposal to change the treatment of farms and businesses in the support scheme the nursing home, also known as the fair deal scheme. A review of the scheme carried out in 2015 took to learn how farm land and business aasets are valued at the mean of the test.
    https://www.independent.ie/business/farming/agri-business/finance/farming-finance-prudent-planning-needed-to-beat-the-fair-deal-catch-22-of-farm-families-37190522.html
    https://www.independent.ie/business/farming/article37190521.ece/6925d/AUTOCROP/h342/2018-08-07_bus_42973939_I1.JPG

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The government approved the proposal to change the treatment of farms and businesses in the support scheme the nursing home, also known as the fair deal scheme. A review of the scheme carried out in 2015 took to learn how farm land and business aasets are valued at the mean of the test.

After that, the programme for government committed to removing discrimination against small businesses and family farms under the scheme.

In fact, it is proposed to extend for three years cover, which refers to the principal private houses for farms and businesses, where the family successor continues to operate the farm or business for six years.

While the government approved the proposal, it requires changes in legislation and probably will not come into force until autumn at the earliest.

However, it represents a welcome relief to many farming families who were facing the prospect of nursing an expensive treatment, which could threaten the viability of farms.

The change is not to provide free nursing care for the affected farmers, far from it. However, this can limit the load on the farm in many cases the equivalent of three years of expensive treatment. The following example sets up a typical scenario.

In the example, the total annual Joe and his wife assessed means is €104,101. Joe has personally evaluated 50pcs this figure for the first three years. The net result means that Joe or his family will have to make 52,050 to his care for each of these three years.

However, as his housing and land are not taken into account from year four years his means were evaluated, the proportion is reduced to €11,175 as a result, the cost of treatment is reduction of € 11,175.

See Also


Of the 10.3 million farmers in the EU, two thirds are less than 5 ha in Size

Was just over 171 million hectares of land in the European Union (EU), used for agricultural production in 2016 – about 40 PCs of all EU land. It supports approximately 10.3 m farmers and farm managers.

This means that if Joe require more than three years of care, his pension will cover the cost of four years.

Joe gave the farm to his son Jack shortly before diagnosed with Alhzeimers this will not affect the test means, how it should have been done five years before seeking medical help.

Currently, in exceptional cases, when a person suddenly falls ill, the same three-year cap on the number of agricultural assets in the assessment tools can be applied provided that the successor confirms that they will continue farm management

CREDIT NURSING HOMES

Where a person or family do not have the funds to pay the nursing home fees, payment may be delayed.

This means that they do not have to find the money to pay this contribution during the life of the person receiving assistance.


Instead, if approved, the HSE will pay the money to the nursing home and it would be collected when a person goes to.

This is effectively a loan from the state, which will be secured by a charge on the title to the farm.

Where the individual or farms for couples around 1 million Euro, it is likely that the cost of treatment will be significantly reduced from one year to four years, but the cost for the first three years can be in the region of € 180,000.

This, along with further disadvantages, it will be necessary to find when the person moves on.

CAREFUL PLANNING

As I said above, it’s usually too late to set about transferring the farm, when a person gets into a bad state of health, if such ill-health requiring nursing home care. This is because the assets to be transferred five years nursing home.

The same applies to other assets such as property or cash. For many people, this presents them with the classic ‘catch-22’ dilemma that if they did not part with their assets they may have to bear the costs of nursing care, and if they do the part they are left with little security.

This requires careful and timely planning must include an assessment of that asset wealth can save yet qualified for most of the future of home care cost

Martin O’sullivan is the Author of Handbook of PMA farmers. He is a partner at O’sullivan Malone and company, accountants and registered auditors; www.som.ie

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