Gifting Assets (Deprivation of Assets)

When considering long term care, individuals and their families often ask us if it is possible to gift or transfer assets before care is needed, in order to avoid having to use these assets in meeting care costs. The legal position is that Social Services Departments have the right to make detailed enquiries into the background of any individual applying to them for financial support. If they discover that assets have been gifted or transferred for the purpose of claiming benefits this may have serious implications.

You should be aware that the right of Local Authorities to investigate your gifting of assets is not restricted by time; they can investigate as far back as they deem necessary to ensure that you have not deprived yourself of assets. Consequently individuals who affect such transfers can have absolutely NO GUARANTEE that they will avoid care costs in this way.

Think carefully before giving away your assets.

Indeed as the financial constraints on Local Authorities become greater in the face of an ever-increasing demand, it is likely that their investigations into this practice will become more rigorous.

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