Ombudsman Upholds Decision That Care Home Resident Deprived herself of Personal Assets to Avoid Care Costs

Wakefield Council had its decision upheld by the local government ombudsman when determining that the £25,000 gifted to the care recipient’s daughter was a deliberate deprivation of her own assets.

This caused her personal assets to fall under the £22,250 [SIC] threshold to apply for financial assistance from the local authority to assist with the payment of care home fees (The correct threshold is £23,250).

The council came to this decision after examining the personal financial circumstances of the claimant and learned that the £25,000 cash sum was gifted to her daughter after the sale of her property. The ombudsman rejected the claim that this was done to cover the daughter’s personal debts and was a deliberate deprivation of assets.

The council believed that the daughter’s debts were not as severe as she had previously claimed, as they were being managed via  a repayment arrangement.

The local authority later upheld its decision following a review, after an appeal from the daughter, which also stated that the elderly woman “sadly died” shortly afterwards. She had originally made the decision herself to move into residential care in 2016 after beginning to feel isolated in her own home.

The Ombudsman stated that the elderly lady “was already in care when the £25,000 was transferred, so she had a reasonable expectation of the need for care and support.”

He concluded that “The only remaining consideration is the motivation. The council considered this and concluded that avoiding care and support charges was a significant motivation for the transfer of monies.

“My role is to consider whether the council made its decision about this properly and I am satisfied it did this.”

Do you need advice when considering making high value gifts to relatives?

Our Wills and Probate Team has a wealth of knowledge and experience regarding Cost of Care and Deed of Gift advice. Alternatively you can speak to our sister Firm, Oakwood Property Solicitors, about Transfer of Equity.

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