When someone who received Fair Deal support dies, the deferred portion of their care costs becomes a debt the estate must settle. That debt — called the “nursing home loan” or Ancillary State Support — is secured by a charge on their home. This guide explains how and when the home is sold to clear it, how the sale fits with Fair Deal estate recovery, and what happens to any money left over.
Losing a parent and then facing a charge against the family home is a heavy combination. The good news is that the process is orderly and well-defined. You do not have to act overnight, and in most cases the charge is simply one debt the estate settles before the people who inherit receive their share.
What the Fair Deal charge actually is
The Fair Deal charge is a loan, not a fee. Under the Nursing Homes Support Scheme, a person can defer paying part of their care costs by having the amount secured against their property. The Health Service Executive (HSE) describes the charging order — a legal claim registered against the property — as a simple type of mortgage that secures the money it loaned towards care.
The amount deferred comes from the financial assessment. A single person contributes 80% of their assessable income and 7.5% of the value of their assets each year towards care. Where one person of a couple is in care, the rates are halved: 40% of combined income and 3.75% of combined assets per year. Crucially, the home is included for only the first three years of care in either case, so the contribution from the home is capped at 22.5% of its value for a single person and 11.25% for a couple. That capped figure is what typically sits behind the charge.
Income
80% of assessable income (single); 40% of combined income (couple)
For the duration of care
Cash and other assets
7.5% of value per year (single); 3.75% per year (couple)
First €36,000 (€72,000 for a couple) excluded
Principal private residence (the home)
7.5% per year, capped at 22.5% (single person); 3.75% per year, capped at 11.25% (couple — one person in care)
Home counted for the first 3 years of care only
How the Fair Deal contribution is built up under the financial assessment. Rates shown are for a single person. For a couple where one person is in care, the rates are halved: 40% of combined income, 3.75% of combined assets per year, and the home is capped at 11.25%. Source: HSE.
| What is assessed | Contribution | Key detail |
|---|---|---|
| Income | 80% of assessable income (single); 40% of combined income (couple) | For the duration of care |
| Cash and other assets | 7.5% of value per year (single); 3.75% per year (couple) | First €36,000 (€72,000 for a couple) excluded |
| Principal private residence (the home) | 7.5% per year, capped at 22.5% (single person); 3.75% per year, capped at 11.25% (couple — one person in care) | Home counted for the first 3 years of care only |
The amount owed when the person dies is the deferred contribution adjusted by the Consumer Price Index (CPI). The CPI adjustment is added to the loan up to the day it is repaid. There is no interest while the repayment deadlines are met — the indexation simply keeps the debt in line with inflation.
When the charge must be repaid
After death, the nursing home loan must be repaid within 12 months of the date of death. If the property had instead been sold or transferred while the person was still alive, a shorter window applies: the loan falls due within six months of that sale or transfer. The table below sets out both triggers.
Death of the person who was in care
Within 12 months of the date of death
Sale or transfer of the property during the person's lifetime
Within 6 months of the date of sale or transfer
Repayment deadlines for the nursing home loan (Ancillary State Support). Source: HSE and Revenue.
| What triggers repayment | Deadline to repay |
|---|---|
| Death of the person who was in care | Within 12 months of the date of death |
| Sale or transfer of the property during the person's lifetime | Within 6 months of the date of sale or transfer |
The HSE can defer repayment in certain cases. The most common is where a spouse or partner of the person who received the loan continues to live in the home; they can apply to have repayment deferred for their lifetime. Where a deferral applies, the home does not need to be sold to clear the charge while the surviving partner lives there.
How selling the home to clear the charge works
In most estates with no other significant cash, the home is sold and the Fair Deal amount is paid from the proceeds. The sequence is the same as any other estate sale, with one extra step at the end: clearing the charge and having the charging order removed. The steps below show the order.
Selling the home to clear a Fair Deal charge
Four stages take you from confirming the amount owed to a clean title and distribution of any balance.
Find out the amount of the Fair Deal charge
After death, the HSE's national unit writes to the person responsible for the estate to confirm the exact amount of Ancillary State Support due. The figure is the deferred care contribution plus Consumer Price Index (CPI) indexation added up to the day the loan is repaid. Get this letter early, because it tells you what the charge on the house will cost to clear.
Apply for the grant of probate or administration
A house held in the deceased's sole name almost always needs a grant of representation before it can be sold, because the buyer's solicitor needs proof of the personal representative's authority to transfer title. Begin the probate-and-property process as soon as you can — the grant is usually the gating step on any sale.
Sell the property or fund the charge another way
The charge does not force a sale. If the estate has other cash, or a beneficiary wishes to keep the home, the charge can be cleared from those funds instead. Where there is no other money, the home is usually sold and the Fair Deal amount paid from the proceeds. The decision sits with the personal representative and the beneficiaries.
Repay Revenue and clear the charging order
Repayment goes to the Revenue Commissioners, who collect the loan on behalf of the HSE. Once the loan is fully repaid, Revenue informs the HSE, which then removes the charging order registered against the property. Clearing the charge frees the title so you can distribute what remains to the people who inherit.
The grant of probate (or administration) is almost always the gating step. A buyer will not complete on a home held in the deceased's sole name until the person managing the estate can prove their authority to transfer title — and the grant of probate is what provides that proof. You can market the property and agree a sale beforehand, but completion generally waits for the grant.
How the charge interacts with probate
The Fair Deal charge is a debt of the estate. Settling debts is part of the personal representative's job — the person legally responsible for administering the estate — before anything is distributed. It ranks alongside funeral expenses, other debts, and any tax due. They gather in the assets, pay what is owed, and only then distribute what remains to those who inherit.
Repayment is made to the Revenue Commissioners, who collect the loan on the HSE's behalf. Once the loan is fully repaid, Revenue informs the HSE, and the HSE removes the charging order registered against the property. Until that happens, the charge remains on the title, so clearing it is what frees the home for sale or transfer. For the wider recovery picture, see our guide to the nursing home loan repayment on death.
What happens to any balance for the beneficiaries
The charge does not consume the whole value of the home. The contribution from the home is capped at 22.5% of its value for a single person, or 11.25% for a couple where one person was in care. Either way, the remaining equity stays in the estate after the charge is cleared and the large majority of the home's value is available to the beneficiaries.
Once the Fair Deal amount, any other debts, funeral and testamentary expenses, and any tax have been paid, the personal representative distributes the balance under the will — or under the intestacy rules if there is no valid will. The Fair Deal charge is simply one liability settled before that distribution. It is not a claim against the people who inherit personally.
Selling the home can have a separate tax consequence. There is no Capital Gains Tax (CGT) on death itself. But if the personal representative sells the property during the administration of the estate, CGT may arise on any increase in value between the date of death and the date of sale. In many estates the sale follows soon after death and that gain is small or nil. Where a property has risen in value before the sale completes, it is worth taking tax advice on the position.