Deliberate deprivation of assets occurs when an individual transfers an asset out of their possession in order to put themselves in a better position regarding the means test for care home accommodation – i.e. to make it more likely that they will qualify for local authority assistance towards the costs.
The term deprivation covers a broad range of ways in which the owner of an asset might give it away or transfer it out of his or her possession. For example:
- A lump-sum payment, such as a gift, has been made to someone else.
- Transferring the title deeds of a property to someone else.
- Putting money into a trust that cannot be revoked.
- Converting money into another form that has to be disregarded from the means test – for example, expensive personal possessions.
- Reducing capital through “living extravagantly” – for example, substantial expenditure on items such as luxury holidays, or by generally following “a much higher standard of living than the resident could normally afford” (source: The Charging for Residential Accommodation Guide, Welsh Government).
Further information can be found in our factsheet "Deprivation of assets in the means test for care home provision in Wales" (PDF 310KB) which can be downloaded from the link below.