Care Home Fees: Disregarded Property

Posted on February 29, 2012

So what items will the Local Authority disregard when assessing my liability to meet the cost of my care?

1. Property in specified circumstances
2. The surrender value of any:
                          life insurance policy; and/or
                          annuity
3. Payments of training bonus up to £200
4. Payments in kind from a charity
5. Any personal possession such as paintings or antiques unless they were purchased with the intention of reducing capital for the purpose of reducing the LA charge
6. Any capital which is to be treated as income or student loans
7. Any payment made by or derived from:
              a. The Macfarlane Trust
              b. The Macfarlane (Special Payments) Trust
              c. The Macfarlane (Special Payment)(No.2) Trust
              d. The Fund (payments to non-haemophiliacs infected with HIV)
              e. The Eileen Trust
              f. The MFET Limited
              g. The Independent Living Fund (2006)
              h. The Skipton Fund
              i. The London Bombings Relief Charitable Fund
8. The monies held in trust or administered by a court which derive from a payment for personal injury to the resident (e.g. vaccine damage, criminal injuries compensation funds)
9. The value of a right to receive:
             a. income under an annuity; and/or
             b. outstanding instalments under an agreement to repay a capital sum
             c. Payment under a trust where the funds derive from a personal injury
             d. Income under a life interest or a life-rent
             e. Income (including earnings) payable in a country outside the UK which cannot be transferred to the UK
             f. an occupational pension
             g. any rent
             *This does not necessarily mean that the income received is disregarded
10. Capital derived from an award of damages for personal injury and which is administered by a court or which can only be disposed of by a court order or direction.
11. The value of the right to receive any income under an annuity purchased pursuant to any agreement or court order to make payments in consequence of personal injury or from funds derived from a payment in consequence of personal injury and any surrender value of such an annuity.
12. Periodic payments in consequence of personal injury pursuant to a court order or agreement to the extent that they are not a payment of income are treated as income (and disregarded in the calculation of income).
13. Any Social Fund payment
14. Any refund of tax on interest on a loan which was obtained to acquire an interest in a home or for repairs or improvements to the home
15. Any capital resource which the resident has no rights to as yet, but which will come into his possession at a later date, e.g. on reaching a certain age.(reversionary interest)
16. Payments from the Department for Work and Pensions to compensate for the loss of entitlement to Housing Benefit or Housing Benefit Supplement
17. The amount of any bank charges or commission paid to convert capital from foreign currency to sterling
18. Payments to jurors or witnesses for court attendance (but not compensation for loss of
earnings or benefit)
19. Community charge rebate / council tax rebate
20. Money deposited with a Housing Association as a condition of occupying a dwelling
21. Any Child Support Maintenance Payment (unless the child is accommodated with the resident, in this case take the payment fully into account)
22. The value of any ex-gratia payments made on or after 1st February 2001 by the Secretary of State in consequence of a person’s, or person’s spouse’s or civil partner’s imprisonment or internment by the Japanese during the Second World War.
23. Any payment made by a council under the Adoption and Children Act 2002, whether income or capital.
24. The value of any ex-gratia payments from the Skipton Fund made by the Secretary of State to people infected with Hepatitis C as a result of NHS treatment with blood or blood products. 25. Payments made under a trust established out of funds provided by the Secretary of State for Health in respect of persons suffering from variant Creutzfeldt-Jakob disease to the victim or their partner (at time of death of victim)
26. Any payments made under section 2 or 3 of the Age-Related Payments Act 2004
27. Any payments made under section 63(6)(b) of the Health Services and Public Health Act 1968 to a resident to meet childcare costs where he or she is undertaking instruction connected with the health service by virtue of arrangements made under that section.
28. Age-related payments made under Parts 2 and 3 of the Age Related Payments Regulations 2005 (SI No. 1983).
29. Any payment made in accordance with regulations under section 14F of the Children Act 1989 to a resident who is a prospective special guardian or special guardian, whether income or capital
The process of assessment for care home funding is complex and should be considered carefully before taking action. If you would like further assistance with this please contact your Lakes Legal Limited advisor on 01229 47 44 57 or email your query to info@lakeslegallimited.co.uk