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What Are ‘Deprivation of Assets’ Care Cost Rules? – and How to Stick to Them

Deprivation of assets rules target individuals who transfer wealth to avoid paying care fees. Local authorities evaluate whether the donor could foresee needing care and whether avoiding charges was a significant motive, disregarding the traditional seven‑year inheritance tax window. If a deprivation finding is made, the asset may be treated as ‘notional capital’ and both donor and recipient can be pursued for contributions. Legitimate gifting is still allowed when done in good health, for non‑care reasons, and with proper documentation.