GIFTING PROPERTY AND ASSETS

In the context of long term care, many families and individuals seek to gift or transfer assets before care is needed in order to avoid having to use these assets in meeting their care costs. The legal position is that Social Services Departments have the right to make detailed enquiries into the background of an individual applying to them for financial support. If they discover that assets have been gifted or transferred with the intention of claiming benefits to which they would otherwise not have been entitled, then they will deem that asset deprivation has occurred. They are then able to assess the individual as though they still owned those assets. It should also be noted that there is no fixed timescale to these enquiries and consequently individuals who effect such transfers can have absolutely no guarantee that the desired result will be achieved. Indeed as the financial constraints on Local Authorities become greater in the face of an ever increasing demand, it is likely that their investigations into this practice will become more rigorous. When contemplating transfers and gifts, it would be advisable to consider the basic legal implications of this action, which involves the complete surrender of any interest in the asset in question. The person who receives the gift assumes total control and can dispose of it in any way they wish without reference back to the original owner. Also, the consequence of the death, divorce or bankruptcy of the recipient justify particular concern. Gifts made for no apparent reason, or with reservations may be difficult to explain to an enquiring Social Services Department.

	The key issues of gifting
	Is it necessary?
	The consequences of making gifts
	Gifting To Protect Capital Bulletin
	To Return to Previous Page