Will my home be included in the financial assessment?
Yes, at the present market value, less any mortgage or loan you have left on it and less 10% of the value where there would be expenses to sell. For the first 12 weeks of care, any property you own is disregarded.
Your home also should not be considered if it’s occupied by a partner, an estranged or divorced partner if they are a lone parent, a relative aged 60 or over, a child of yours aged under 18 or a relative who is disabled.
What if I give away some or all of my property/money?
Intentionally reducing assets so they won’t be included in the financial assessment for care fees is known as deprivation of assets. If your local authority conclude this is the case, they may still calculate your fees as if you still owned the assets. Alternatively, charges may be recovered from the person the asset was transferred to.
There are different methods of reducing property/money that could amount to deprivation of assets:
- Making a lump sum payment to someone else (gift)
- Transferring the title deeds of your property to someone else
- Substantial sudden expenditure (out of character spending) or gambling
- Using savings to buy possessions such as jewellery or a car (as these would generally be excluded from the means test)
- Putting assets into a trust
- Using assets to purchase investment bonds