Farming families are being urged to ensure they designate a farm successor within the next six weeks to avail of the three-year cap on farm or business assets due to changes under the Nursing Home Support Scheme (Fair Deal).
Recent changes to the law underpinning Fair Deal introduced a three-year cap on nursing-home charges against a farm or a business asset. These new changes will come into effect on October 22.
Independent TD, Denis Naughten, whose amendment brought about this change, has urged families to act now as delays could cost 0.14% of the farm value weekly, he said.
“Families need to act now and ensure that they are ready to avail of this cap when it comes into force next month,” said the TD.
Fair Deal – successor
The next steps to take are as follows:
- The person in the nursing home must formally designate their family successor;
- The successor must be able to confirm that either they, or their partner/spouse, spent a substantial part of their working time on the farm or in the business before the person in nursing home went into long-term care;
- The family successor must commit to working the farm (or business) for a period of six years beginning on the date of his or her appointment by the person in the nursing home.
Avoid delays
“In most instances this should be straightforward but it’s important to plan for it now rather than waiting until the new law comes into force, in case there are issues that need to be clarified, which could delay being able to access this relief,” said Deputy Naughten.
“Where the land has already been signed over, but is still being charged under the nursing home support scheme, the new owner of the farm or business asset is obliged to consent to a charging order being registered against the asset,” he explained.
“In such cases there may be a need to secure an additional consent from a lender, which may result in additional nursing home charges being applied against the farm or business until all the paperwork is lodged.
A number of steps need to be taken to avail of this relief and potential pitfalls and delays may arise, as well as a demand for professional advice.
“As a result, this means that every week a family delays in being able to avail of the new relief a further charge of 0.14% will be placed against the capital value of the family farm or business asset,” Deputy Naughten said.