deliberate deprivation of assets

joanneb78

Hi I'm looking for some advice. My Mum was diagnosed with renal cancer in March 2021 and due to her failing health the consultant advised that palliative care was her only option. Under the £3k a year rule, citizens advice advised us that she could give money to me for this year and last year. Her health has deteriorated rapidly and she has since entered a care home. At a care bill of almost £4k per month her savings won't last much longer until she is under the threshold for LA contribution. I was very honest with the LA and told them about what had happened when they asked about her self funding.They are implying that this is deliberate deprivation of assets. It's hardly a huge amount! Can anyone advise. Thanks. 

[Deleted User]

It seems a fairly clear case of deprivation of assets, as she knew she would need care at the time. 

Gifting is a way of avoiding inheritance tax, rather than to avoid care fees.

Would she be above the qualifying threshold had she not given you money?

tacpot12

Have they said they won't fund your mother because of the money that she gave you?

joanneb78

Ultimately when she gave the money she was above (and still is) the threshold for LA funding. It wasn't anticipated that she would live as long as she has. 

tacpot12

It is was expected hat your mother was going to die before she needed LA funding for her care, then I don't see that the LA has any basis on which to deny funding her when she needs it. She might have deprived herself of some assets, but the assets were expected to be surplus to requirements. 

The LA has to show she knew that she may need them to contribute to her care and support in the future, and that her motive in giving the money away was to cause her to pay less and them to pay more. You seem to be able to show that she fully expected to have died before her money ran out, and that she was going to have capital left over so she gave it to you, not to increase the amount that the LA would have to pay for her care, but because she knew you needed the money now.

You should study this AgeUK document Deprivation of assets in social care (ageuk.org.uk)

I would put these points, and the point made in the AgeUK document that even if deprevation of assets has occured, your mother should still receive the help she needs, to the LA, and if they still don't agree, raise a formal complaint with them, and then take this  to the Local Government and Social Care Ombudsman.

The AgeUK document has some specific advice about how to complain about decisions about deliberate deprivation of assets that you think are wrong.

elsien

Has your mother looked into whether she would qualify for health funding, given her diagnosis?  Just mentioning it because if she is eligible for full funding (and she may not be) that would take means testing out of the equation anyway. 

Keep_pedalling

The CA advice is simply wrong, the £3000 pa allowance is nothing to do with DDOA, it is purely an IHT exemption, which is not really an issue as her estate is unlikely to be anywhere near IHT territory.

Having said that I am surprised she is having to fund end of life care for terminal cancer, which I would have thought would have been NHS funded.

lisyloo

Wouldn't IHT avoidance provide something of a defence though? it does provide a valid reason which isn't deprivation.

Agree with the others that she should be assessed for CHC (continuing health care) which means that if her primary needs are medical then she'd be free on the NHS. She may well qualify for funded nursing care if she doesn't get CHC which means a small part of the fees are covered (the nursing part).

pinkshoes

If she has terminal renal cancer and needs palliative care, then surely the NHS pay this?

(e.g. the care required is for healthcare needs rather than social needs).

Both my grandparents died in the last 2 years of cancer and despite having assets well over £500k their palliative care was free. My grandmother spent a week in a hospice before passing away, and my grandfather only required a daily visit and remained independent at home (only because he lied about his condition and how ill he was so he didn't have to go to a hospice, but the care visits were free!).

https://www.which.co.uk/later-life-care/financing-care/nhs-funding-for-care/nhs-continuing-healthcare-aupcg2x060rg

Keep_pedalling

lisyloo said:

Wouldn't IHT avoidance provide something of a defence though? it does provide a valid reason which isn't deprivation.

Only if an estate was in IHT territory, and the person had a reasonable chance of surviving 7 years. Having said that, gifting some money away when you have been diagnosed with something like terminal cancer should not be an issue, as I would not expect to have to self fund unless I choose to do so in a private nursing home of my choice.

BargainJunky

Seek advice on CHC continuing health care.