Adult Social Care Financial Assessment
Adult Social Care Financial Assessment

Local Authority Financial Assessment

Assessing an individual for care fees - Joint bank accounts

To receive financial support from the local authority for Adult Social Care, they will have to assess and agree your care needs, confirming that you meet the eligibility criteria. Only then can a financial assessment work out who pays what…

In England the council generally helps to pay for care costs if you have savings less than £23,250 but your income will also be assessed and if high may mean that you are ‘self-funding’ on income alone even if your savings are below the £23’250 upper funding level.

The financial assessment is free and happens after a needs assessment or carer’s assessment.

Your local authority cannot include capital or income belonging to your partner in your financial assessment. Each person must be treated as an individual

Private Pensions

If you enter a care home permanently and have a personal or private pension, an occupational pension or a retirement annuity, you can choose to pass 50 per cent to your partner remaining at home. This amount must be excluded or disregarded from a local authority financial assessment.

Before deciding whether to take advantage of the 50 per cent disregard, you should consider whether it benefits your partner financially. This is because receiving extra income can affect their entitlement to means tested benefits such as Pension Credit, Housing Benefit or Council Tax Reduction.

Joint Savings

Statutory guidance describes the local authority’s power to divide a jointly held capital asset equally ‘except where there is evidence that the person owns an unequal share.’ If your savings are held jointly, half of the amount will be assessed as belonging to the person who needs the care.

Separating Joint Accounts

Separating jointly held savings into individual accounts may make keeping track on care fees and bills more manageable BUT if you take half from a joint account and put it into the name of the partner not requiring the care, intending the Local Authority to split the remainder of the joint account it could be considered deliberate deprivation. Both Financial and Legal advice may be required.

Power of Attorney

Sometimes children have a Power of Attorney for both parents which can cause a conflict if joint funds require separating or one partner requires more financial input than another, for example when care fees are needed. When this applies it is appropriate to bear in mind the Principles of the Mental Capacity Act 2005 and be guided by the Code of Practice. A Power of Attorney requires the Attorney to act in the ‘Best Interest’ of the person who no longer has the mental capacity to manage the decision. Both Financial and Legal advice may be required

Deprivation of Assets

Adult Social Care financial assessment

Depriving yourself of an asset isn’t always done with the intention of avoiding paying for care. Both timing and intent is important. Before looking at the reason for the deprivation a Local Authority will consider when you reduced your assets and whether you could reasonably expect to need care and support.

Avoiding paying for care may not be the reason for reducing your assets or making a gift and a local authority should consider both the timing and intent before deciding whether the purpose of the deprivation is avoiding care and support charges as people with care and support needs are free to spend their income and assets as they see fit, including making gifts to friends and family. 

What is meant by deprivation of assets? Deprivation of assets means where a person has intentionally deprived or decreased their overall assets in order to reduce the amount they are charged towards their care. This means that they must have known that they needed care and support and have reduced their assets in order to reduce the contribution they are asked to make towards the cost of that care and support.
Notional income/capital – In some circumstances a person may be treated as having income/capital that they do not actually have. This is known as notional income/capital. This might include for example income that would be available on application but has not been applied for, income that is due but has not been received or income/capital that the person has deliberately deprived themselves of for the purpose of reducing the amount they are liable to pay for their care
Thank you for reading this weeks blog, Adult Social Care Financial Assessment.

If you would like some help please Get In Touch.

Care Navigators

(November 2022)

Download the FREE ‘Care Map’ APP

What People Say ...

Saved us nearly £200k
Saved us nearly £200k
SC, Leighton Buzzard
Read More
“My Father had been admitted into Hospital many times over the last few years but until I spoke with Care Navigators no one had mentioned that he may have been discharged under the Mental Health Act. A Care Funding check and established that his care should have been paid for by the NHS and Local Authority for the last 5 years, saving us nearly £200’000”! I am so grateful."
It is a weight off my mind
It is a weight off my mind
JN, Buckingham
Read More
"Before speaking to Care Navigators I had paid for my Wife’s care, I had no idea the NHS could pay and when it came through I was amazed. All £795 per week was paid, from 7 months ago. I couldn’t believe it. Just to say thank you so very much for all you have done. It is a weight of my mind!"
I didn't know my sister could get funding
I didn't know my sister could get funding
FH, Brackley
Read More
“Until speaking with Care NavigatorsI had no idea my Sister could get a benefit for being disabled. She had some savings and I presumed we would have to pay for everything we needed. It has made such a difference to her, she uses it to pay for a cleaner and a gardener, which means I can get the shopping and go out.”
Finding Good Care
Finding Good Care
NM, Whitchurch
Read More
“When my Mother fell and went into Hospital I wasn’t sure she would come out. Care Navigators helped me to find and arrange care for her to go home with, I wouldn’t have known where to start”.
I didn’t have the worry or stress
I didn’t have the worry or stress
SD, High Wycombe
Read More
“Care Navigators knew all of the care providers in my area and I didn’t have the worry or stress of ringing round and not knowing what to ask” Dad is home with a live-in carer and we spend our time together instead of me running around and getting nowhere fast. Thank you”.
Can't thank you enough
Can't thank you enough
LK, Towcester
Read More
“Wow! From beginning to end Care Navigatos helped me to understand what was happening, get the right assessments, find a care home and claim benefits that I didn’t know existed. I can’t thank you enough."
Share this post
Facebook
Twitter
LinkedIn
WhatsApp
Email

How can we Help?