Deliberate Deprivation of Assets

In England and Wales, a deliberate deprivation of assets occurs when an individual intentionally reduces their wealth, such as money or property, to decrease the amount they are liable to pay toward their care fees.

This is only relevant if the individual is relying on the Local Authority to fund their care.

Having assets below £23,250 makes you eligible for Local Authority funding so deliberately disposing of assets to fall under this threshold, so you can claim Local Authority funding is considered deliberate deprivation.

Common methods of asset deprivation include giving away money or property to friends or family, selling valuable items for much less than their true worth, transferring assets into trusts to hide them, or not declaring income or assets.

The council will consider the following when assessing a potential deprivation of assets:

• Did you know you would need care or there was reasonable expectation of requiring care, when the assets were disposed of?
• Was paying for care a significant reason for giving away assets?
• Did you know or have reasonable expectation that you would need the money to contribute to care?

Giving away money is not the only circumstance that could be considered a deliberate deprivation, it can also present as gifting a large sum of money, transferring title deeds or purchasing an asset that can be excluded from financial assessment.

The council are required to show that you were significantly motivated by avoiding care costs, you were aware of a need for care, and you were expecting to pay for the cost of your care. They are also required to let you submit relevant evidence to support your account.

If you are found to have deliberately deprived yourself of assets to avoid care fees, the council will assess your finances as if you still have the assets and you can still be liable for your own care fees. They can also reclaim the cost of care from the recipients of any discarded or gifted money.

If you disagree with the council’s decision about a potential deprivation of assets, or need advice on gifting or transfer of assets, our specialised Court of Protection and Private Client team can advise.