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Deliberate asset deprivation

Deliberate asset deprivation is the term used when someone gives away assets such as income or capital or sells them at less than their market value, in order to qualify/increase support that wouldn't otherwise be available from the local authority.

If an attempt is made to give capital away, the local authority could try to recover it.

If capital is transferred within six months of having a requirement for care, the local authority has the powers to recover those assets directly from the recipient and or count them as notional capital, i.e. treat them as if they had never been given away.

If capital is disposed of more than six months before requiring care, it can be regarded as notional capital by the local authority depending upon the motivation of the person who gave it away. The right to recover from the recipient ceases after six months but there is no time limit to recovering from the donor under the assessment of resources.

Sudden financial gifts to children and grandchildren and the disposal of the family home are, however, likely to be scrutinised closely.