Deliberate Deprivation and Care Fees

Many people are concerned about the rising cost of care and how it might affect their savings, home, or family inheritance. It’s a very real issue: if you ever need residential care, local authorities will look at your financial situation to determine how much you should contribute. Understandably, families want to know whether there are ways to protect their assets and make sure their loved ones are supported.

But here’s the important part: the law is very clear about what is — and isn’t — allowed. If the local authority believes you have deliberately reduced your assets to avoid paying care fees, this may be classed as “deliberate deprivation of assets”. In those cases, they can still treat you as though you had those assets when assessing your ability to pay.

This blog explores what deliberate deprivation means, how the rules work, and what responsible planning looks like.

What Is Deliberate Deprivation of Assets?

Deliberate deprivation happens when someone gives away, transfers, or otherwise disposes of their money, property, or assets with the main intention of reducing what they own so they may pay less towards care costs.

Examples might include:

• Gifting large sums of money to family members shortly before moving into care.
• Transferring ownership of your home to children while you still live in it, without receiving anything in return.
• Moving savings into another person’s account to avoid them being taken into account.

If the local authority believes these actions were done to avoid care fees, they may treat you as if you still own those assets when carrying out their financial assessment.

When Does It Count as Deliberate Deprivation?

The key question the local authority asks is: “What was the intention?”

It’s not simply about what you did, but why you did it. If you transferred assets years before care was ever on the horizon, that’s very different from making changes when care needs are imminent.

Authorities will typically look at:

• Timing: Did the gift or transfer happen when you already needed care, or reasonably expected to need it?
• Motivation: Was reducing care costs the main purpose, or was there another valid reason (e.g. inheritance tax planning, helping children onto the property ladder, or estate management)?
• Pattern: Is there a history of similar financial arrangements, or does it appear sudden and unusual?

If there’s evidence that avoiding care fees was the main driver, the local authority may class it as deliberate deprivation.

The Risks of Getting It Wrong

If the local authority decides deprivation has occurred:

• They can still include the value of those assets in your assessment, even though you no longer own them.
• If you transferred assets to someone else (like a family member), the authority may refuse to pay towards your care until those assets are used.
• It can create conflict and stress for your family at an already difficult time.

What Responsible Planning Looks Like

The good news is that not all asset planning is deprivation. People have many legitimate reasons for making gifts, setting up trusts, or transferring assets — and these can be perfectly valid if done responsibly, in the right circumstances, and with proper advice.

Examples of responsible planning might include:

• Creating a trust to support children or vulnerable beneficiaries.
• Gifting money as part of inheritance tax planning, long before any care is foreseeable.
• Structuring assets to reflect family arrangements or business succession planning.

The difference comes down to intention and timing. If the arrangement is part of wider, long-term estate planning — not a last-minute attempt to avoid fees — it is far less likely to be challenged.

How We Can Help

At Hexagon Life Planning Services Ltd, we understand the fine balance between protecting your family’s future and ensuring your planning is compliant with the law. We never promote or encourage schemes designed for deliberate deprivation of assets. Instead, we focus on:

• Helping you understand the rules so you know what is and isn’t allowed.
• Exploring legitimate estate planning options such as wills, trusts, and powers of attorney.
• Advising on long-term planning so decisions are made responsibly, not in reaction to a sudden change in circumstances.
• Giving you the confidence that your arrangements are in line with current regulations.

Key Takeaways

• Local authorities assess your finances to decide how much you contribute towards care.
• Giving away or transferring assets purely to avoid fees can be classed as deliberate deprivation.
• Authorities look at intention, timing, and motivation when making a decision.
• Poorly timed or poorly advised transfers can cause serious problems for you and your family.
• Responsible, long-term planning with professional advice is the best way to protect your interests.

Final Thoughts

Deliberate deprivation is a complex and sensitive area of law. While it’s natural to worry about care costs, it’s important to plan carefully and responsibly. With the right guidance, you can structure your estate in a way that supports your family, protects your assets, and remains compliant with regulations.

If you’d like to discuss your situation and explore your options, the team at Hexagon Life Planning Services Ltd is here to help. Our advice is clear, friendly, and always tailored to you.

Contact us on 0800 610 1131 or email info@hexagonlps.co.uk to book an appointment today.