• Rose and Rose Solicitors

Established Pattern Of Giving Not An Attempt To Escape Costs



When care costs need to be met, simply giving away your money is not an avoidance strategy that normally meets with success, as the local authority is likely to contest such arrangements when calculating what it should contribute towards the costs.


In a recent case, a local council refused to meet the cost of an elderly woman's care home fees when it learned that she had given sums of money to her family while in the home. In its view, this had been a deliberate attempt to avoid paying the costs herself.


When she was admitted to the home following a stroke in 2007, she had assets of approximately £250,000. Currently, anyone with assets of over £23,500 has to pay the full cost of their care.


Seven years later, the woman's assets were depleted to the extent that her family applied for assistance from the council, which instituted a financial means assessment process to determine her eligibility for support. The council began paying for her care on a provisional basis pending the finalisation of the assessment. In the course of the assessment process, it was revealed that she had given away an average of about £1,000 per month. She claimed that this had been recommended to her by an independent financial adviser and it was something she had done for some time prior to her stroke.


The council took the view that she had intentionally deprived herself of the capital needed to pay for her care and demanded repayment of the £7,000 it had paid up to that point. It also stopped paying her care home fees.


The council took the view that she had intentionally deprived herself of the capital needed to pay for her care and demanded repayment of the £7,000 it had paid up to that point. It also stopped paying her care home fees.


Taking professional advice early can represent the difference between leaving your estate to your loved ones and having it reduced by care home costs or Inheritance Tax.


We are here to provide help and advice, so please call our specialist team on 020 8974 7490 for assistance.


Please note we are unable to offer legal aid.

0 views

Our useful documents, click to view

If you have difficulty with mobility we can arrange to see you outside the office where there is ease of access or even at your home 

© Rose & Rose. All rights reserved. Registered Office: The Riverside Centre, 40 High Street, Kingston upon Thames, KT1 1HL 

London, Tower Hill: 1 St Katharine's Way, St Katharine's & Wapping, London E1W 1UN

Rose & Rose LLP t/a Rose & Rose (Company no. OC363353)

VAT Number: GB 928 5154 08

Authorised and Regulated by the Solicitors Regulation Authority (SRA)

SRA ID: 559162