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THE STRATTON & TASBURGH BOOK

Deliberate Deprivation of Assets: Should You Be Worried?

You may have heard of “deliberate deprivation” in relation to the way that local authorities calculate meanstested social care and support costs. It’s often talked about, but perhaps less well known than other social care issues.

Deliberate deprivation of assets refers to a scenario where a person purposefully gives away things they own in order to pay less on means tested care or support. This could mean assets like property, cash, or even personal possessions. Because care costs are means tested, if you give away assets, it follows that you’ll therefore be eligible to pay less for your care. However, if the local authority can determine that you’ve given away your income or property for the sole purpose of reducing the amount you pay for care, they can assess your financial circumstances as if you hadn’t given the assets away at all – charging you what you would have originally paid. This could lead to you having to pay more than you can afford for your care. One of the key issues with deliberate deprivation is that it’s difficult to predict the action that local authorities may take. Financial assessments for means-tested care costs can be complicated, and local authorities may investigate any financial transactions or discrepancies they deem to potentially be deliberate deprivation. There are a number of different things that are set out in the guidance for local authorities as possible deliberate deprivation which could, therefore, be investigated. Here are some examples (this is a non-exhaustive list - part of the danger of deliberate deprivation is that it covers a wide range of transactions): · A lump-sum cash payment to somebody else, even a family member · Any substantial spending that’s out of character · Transferring a property to another person · Suddenly living extravagantly, spending frivolously on, for example, gambling. Deliberate deprivation must be proven to be deliberate. So, in theory, you can’t accidentally commit deliberate deprivation. However, in practice, because deliberate deprivation covers a wide range of potential transactions, it’s possible that you could end up being investigated by a local authority. This means it’s vital to be careful when it comes to making changes to your finances if you’re likely to need care or support services in the near future. Another part of the deliberate deprivation rules is around foreseeability – if you suddenly need care or support unexpectedly, it’s unlikely to be considered deliberate deprivation. So, if you’re fit and healthy with no immediate need for care, you shouldn’t have to worry too much about your financial situation and recent transactions in regards to deliberate deprivation. The way that deliberate deprivation is handled by local authorities is to simply charge you for your care needs as if you still had the assets or income. So, the obvious risk is that you might end up paying an unaffordable amount for your care. For example, if you bought cars for your children to try and reduce your savings and pay less for your care, you may end up simply being charged what you would have been charged had you not bought the cars! There are other risks, too. If you can’t afford the new rates, the local authority can recover the charges from a third party. In the example above, this may mean that your children are liable to pay for your care, because you bought them new cars and therefore transferred your assets to them. If you know you’re going into care, it’s vital to be careful with your finances. Not only can you end up in legal trouble with local authorities if they can prove that you’re deliberately reducing your income to try and avoid paying for your care, going into care is an unavoidable long-term financial commitment that you need to plan for in a serious and thoughtful way. If you need help with your finances, check out Face to Face Finance’s range of financial advice services. Whether you want to plan your pensions, retirement, or inheritance, we can help make the right choices for you – and we always get to know your exact situation, so we can offer the perfect advice.

T: 01603 625100 www.ftof-finance.co.uk

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Nominations are now open for the Broadland and South Norfolk Business Awards 2022

Nominations for Broadland District and South Norfolk Council’s Business Awards are now open. The awards recognise and celebrate the amazing array of successful businesses in both districts. Despite the challenges of the past 18 months, many businesses have survived and even thrived, not just financially, but by being adaptable, innovative and excelling at supporting the very communities that have supported them. To recognise this, the councils have added five new categories to the awards, including Outstanding Employer, Business in the Community, Working Together, Business Resilience and Business Innovation. Businesses are invited to nominate themselves for an award in any of the 10 categories and residents can support their favourite business by nominating them as ‘Retailer of the Year’, with the chance to win £100 of shopping vouchers. This year’s categories are:

Business Growth Business Innovation Business in the Community Business Resilience Environmental Impact International Business Growth New Business Outstanding Employer Visitor Experience Working Together Retailer of the Year – open for public nomination only View the criteria and nominate online by 13 December 2021 at www.southnorfolkandbroadland.gov.uk/ businessawards. Retailers can request a marketing pack to advertise the Retailer of the Year award to their customers by emailing business.awards@southnorfolkandbroadland.gov.uk

Helping leaders & sales teams to achieve better results with Training, Coaching & Mentoring. To gain some development ideas for your team, email to arrange a FREE 15-min telephone call or book a £149 60-minute Zoom session..

Join me @stuartsayer on the Clubhouse Audio App; I’m a top 10 participant of ‘The Winners Club’ & a regular speaker Mon-Fri 6:30-9:00, Sat 7:00-9:00am, Sun 9:00-12 midday.

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