How do local authorities prove deliberate deprivation of assets for care costs?

A local authority currently deems any person with capital resources of £23,250 and above to have sufficient assets to meet the full cost of any care on their own.1

Previously one of the simplest ways to remove capital, for assessment of care-cost purposes, was to invest via life assurance policies, such as single premium investment bonds.

However, the new legislation of the Care Act 2014 now casts doubt as to how such investments will be treated and, if the position does change and these investments are not declared as capital, they may be considered deliberate deprivation of assets.

To prove deliberate deprivation of assets an authority must satisfy themselves that:

  • at the time of making the investment, you had a reasonable expectation of your impending need for care and support;
  • Avoiding the Care and Support Charge was a significant motivation
  • and/or you had a reasonable expectation of the need to contribute to the cost of your eligible care needs.

References 

  1. Should your resources drop below £23,250 you may no longer be considered able to meet the full cost of care on your own.