Financial assessment considerations
14.1
Deprivation of income and/or assets is the disposal of income and capital (property and investments) in order to avoid or reduce care charges.
Disposal can take the form of transfer of ownership or conversion into a disregarded form.
In all cases, it is up to the adult to prove to the Council that they no longer possess an income or an asset.
The Council will determine whether to conduct an investigation into whether deprivation of income or assets has occurred.
Where an investigation is conducted, this could be conducted under guidance contained within the Regulation of Investigatory Powers Act 2000.
Following the investigation, where the Council decides that an adult has deliberately deprived themselves of an asset or income in order to reduce a charge for care and support, the Council will initially charge the adult as though they still own the asset or income.
14.2
Property other than the adult’s main or only home will be included within the financial assessment as a capital asset where they are the beneficial owner or have a beneficial interest in the property.
The only exception to this rule is where the adult is taking steps to sell any additional property(s). The Council would expect that reasonable steps are taken by the adult to ensure that the sale is progressed in a reasonable timeframe. The Council reserves the right to review this situation on a 6-monthly basis.
14.3
The Care Act 2014 requires that financial assessments are completed for adults as individuals.
Where capital is held and income is received on a joint basis, then it is assumed that each person is entitled to 50% of that income. A couple is defined (for administration of their financial affairs) as two people living together as spouses or partners.
Where appropriate the Authority will assess as a couple, if the outcome of the financial assessment is more beneficial to the adult being cared for.
14.4
An allowance for housing costs (e.g. rent/mortgage/council tax) will be made within the financial assessment for actual costs incurred, on production of evidence to substantiate liability for expenditure. Where the adult is not liable for these costs but contributes towards these through a private board agreement or similar, then the adult 17 will be expected to meet this expenditure from their guaranteed income.
14.5
Where funds are held in trust, the financial assessment will seek to determine whether income received, or capital held in trust should be included or disregarded. Copies of trust documents (e.g. Trust Deed, Will Settlement etc) are required to be produced as part of the financial assessment.
14.6
Where the adult receiving care and support has capital at or below the higher capital limit, but more than the lower capital limit, they will be charged £1 per week for every £250 in capital between the two amounts. This is called “tariff income”. For example, if an adult has £4,000 above the lower capital limit, they are charged a tariff income of £16 per week.