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Deprivation of Assets and Care Home Costs

We are often asked to advise clients on how assets and income can be taken into account by local authorities when assessing payment for care. Where someone is moving to residential accommodation, the local authority must carry out a financial assessment of that person, and their ability to meet costs.

The Residential Accommodation Guidelines for Local Authorities (which can be found at www.sehd.scot.nhs.uk/publications/cc2018_02.pdf) provides guidance to local authorities as to how to carry out that financial assessment.

One issue which must be considered is “deprivation of assets”. This is where someone intentionally reduces their assets so that they will not be included in the financial assessment for care home costs. If you are deemed to have intentionally done so, then the local authority may still calculate your fees as if you still owned the particular assets.

The guidelines provide for what a local authority can take into account when determining whether there has been a deprivation of assets.  These can include:

·         Transferring property to another person

·         Making a lump-sum payment to another person

·         Incurring substantial or unusual expenditure

The circumstances of getting rid of the particular asset must also be taken into account in the assessment. The local authority must be satisfied that the deprivation was intentional. The timing of the deprivation will also be important to consider. The person must have known at the time they rid themselves of the asset that they may need care or support. Further, the local authority must be satisfied that avoiding paying care costs was a significant reason for the person getting rid of the asset.

If you wish to seek advice on your own particular circumstances, please feel free to contact one of our experienced private client lawyerswho will be happy to assist you.