The rules for deprivation of assets - meaning the reduction of your assets by spending, gifts, certain investments, etc - can be quite complicated and will affect your local authority means test for care home provision.
In an effort to help you understand the process, Age UK has produced a factsheet, which should be read in conjunction with Age UK’s other factsheets on care home funding.
- Information on government guidance that must be followed by local authorities
- The definition of deliberate deprivation
- The concept of notional capital and local authority powers of financial recovery.
The timing and motivation for a disposal of assets are of central importance and the local authority has a responsibility to consider these elements as part of means test.
Deprivation of assets in the means test (PDF 485 KB)