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Money and benefits

17) Money rules for care homes – Deprivation of capital

Deprivation of capital
This is defined as deliberately giving away property or savings to avoid paying for care home costs. Rules covering deprivation of capital are also complex. Examples of this would be giving away lump sums of money to friends or family just before going into a care home. It would also include transfer of property, spending large amounts of capital on items which are deemed to be unnecessary such as cars, expensive jewellery or paintings or incurring large gambling debts to purposely reduce the amount of savings. In some instances families have built expensive annexes or extensions to property from the relatives capital funds but once completed the person then goes into a care home. This could lead to legal battles to recover the capital. If in doubt seek individual advice for your own circumstances.

If the person has substantial assets they can make a private arrangement with a care home of their choice. They should have a contract with the care home which sets out terms and conditions of the agreement.

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