Important Legal Information
Please be aware that if you are making an application for financial assistance to help reduce your care costs, the law requires you to declare your true financial circumstances. Failure to do so could render you or your representative liable to legal proceedings.
Deprivation of assets
The law states that you must not give away money or property or sell it at a below market value in order to secure more financial assistance. If you have done this, your application will be treated as if you still owned it. The money or property will be treated as “notional capital†and it will affect the amount of assistance you can get. The people you have given the asset to might also become liable to pay your care and support costs.
Placing assets in Trust
Trusts are legal devices designed to hold assets on behalf of named beneficiaries. With a trust owning the assets, you might have been advised that those assets will no longer be counted in your application for financial assistance.
However, the law states that you must not place your assets in trust in order to secure more financial assistance.
If you do this, you may not qualify for financial assistance and you will have to pay all your care and support costs yourself.
If you have been advised to place your assets in trust to protect your investments from being used to pay your care and support costs, you have been given the wrong advice. The law states that you must not transfer the ownership of assets like a property or savings into a trust to avoid or reduce your care and support costs.
Financial assistance is means-tested, so, if the Council believe you have given away your money or property in the avoidance of paying your care and support costs, we will decide that you have deprived yourself of your own assets to take advantage of state financial assistance and this may mean that you will not qualify for financial assistance.
The Council will use its powers to investigate thoroughly all applications for financial assistance in accordance with the Care and Support Statutory Guidance.
The information provided is for guidance only and does not constitute legal or financial advice.
Kirklees Council strongly advises you to take independent financial advice regarding your funding options for your care and support costs.
Getting financial advice
The Council is not allowed to give financial advice directly, but there are independent organisations and services you can go to for financial advice. Some of these are listed on this page under useful contacts. Some organisations are national and some more local to Kirklees.
Paying for financial advice
Some organisations offer free advice and others may charge.
Using legislation to calculate eligibility for financial assistance
When undertaking financial assessments, the Council must act in accordance with:
- Care Act 2014
- Care and Support (Charging and Assessment of Resources) Regulations 2014
- Care and Support Statutory Guidance
You can find further information at Legislation - GOV.UK
Consequences of not paying care and support costs
The Council will pursue you for your debt and this may result in legal proceedings. Your credit rating (or your legal representative's) may also be affected.