Deprivation of Assets: What Councils Look For

Some people consider giving away assets to reduce their wealth and qualify for council-funded care. However, councils can treat 'deprived' assets as if you still own them - a practice known as 'notional capital'.

Deprivation of assets occurs when someone deliberately reduces their capital to get more council help with care costs. This includes giving away money, property, or possessions.

• The timing of any gifts or transfers
• Whether care needs were foreseeable at the time
• The purpose of the transaction
• Whether you knew about the means test rules
• The amount of assets transferred

The crucial question is: was avoiding care fees a significant motivation? If you gifted assets years before any care needs arose, this is less likely to be seen as deprivation.

If the council decides deprivation occurred, they can assess you as if you still have the assets. This means you'd be expected to pay as a self-funder, even without the actual money.

• Paying off legitimate debts
• Essential home repairs or adaptations
• Holidays and reasonable treats before care needs arose
• Gifts made long before any care needs
• Reducing assets to pay for other care needs