Deprivation of assets

Kirkmain

So I've been reading up about what some councils consider to be deliberate deprivation of assets when deciding whether one would be eligible for state funded care in the event that I need it.

I can understand gifting/ selling/ transferring deeds. But on the list is also gambling and "living extravagantly"

I was just wondering how exactly this is enforced. Say I spent all my money on a luxury 12 month round the world cruise, or I lost it in a high stakes poker game in Monaco. I return unable to fund my own care. If I then end up in a situation where I then need care, will the council expect me to get a refund from the cruise company?, or would they not move me into a care home until I've won back my gambling losses? Will they just leave me to rot, whereas perversely, say I never had that money to lose in the first place, they would have funded my care?

Interested to know thoughts and personal experiences

TIA

eddddy

When councils look at potential "deliberate deprivation of assets" - they are supposed to look at "Intent" and "Foreseeability".

"Intent" would mean that you intentionally spent the money to avoid paying care charges. i.e. Avoiding care charges was the only reason (or perhaps a major reason) why you decided to spend the money.

"Foreseeability" would mean when you spent the money, did you have a reasonable expectation that you might need that money for care in the future?


If the council believes there has been "deliberate deprivation of assets" through extravagant spending, they should still provide the care services, but they would charge you as though you still had the money that you had spent.

If you can't or won't pay the charges, the council treat it as a debt, and (probably as a last resort) they can take 'normal' debt enforcement powers.

Probably things like getting court orders to take part of your pension, send bailiffs to confiscate your belongings, and perhaps even declare you bankrupt.


But as with any debtor, ultimately if you don't have the means to pay, there's nothing your creditors can do about it.  I believe the council have to keep providing appropriate care for you.


(As you probably know, if the "deliberate deprivation of assets" involved transferring an asset to somebody else - the council have greater powers.) 

TELLIT01

If the person involved is a homeowner the council could take a lien against the property.  They would then take money from the proceeds of sale once the owner died or moved permanently into care.

Sarahwithlove

When it comes to gambling money away its very hard for them to prove the intention was to deprive assets. Its more about gifting money at a time when you can forsee care needs. I.e getting a diagnosis of dementia and then transferring your property or capital.