SANCTUARY TAX 
Care Fees 
 
 
 
 
 

CARE FEES THE BIG CONCERN  

QUESTION 
Can I put my assets in to a trust to protect them from care fees. 
 
ANSWER 
No the Government has introduced an act within the Care Act called Deprivation of Assets. (more information below) This means any action you take to deliberately prevent care fees you are committing deprivation of assets. 
 
 
 
 
 
 
 
 

HOWEVER... 

There are many legitimate reasons a person would require a trust, if a person has concerns that cannot be addressed through a Will alone then a suitable alternative has to be taken. A trust would be a suitable alternative as a trust will address many concerns that could not be addressed through the Will. We can now prove with documented evidence that Deprivation of Assets has not been committed, more importantly, we can also prove the legitimate reasons the trust was the suitable option. 
 
 
 
 

WHAT HAS THIS ACHIEVED 

Your assets have been ring-fenced, there is now a legal barrier between your assets and everyone other than your chosen beneficiaries. By naming your bloodline as the beneficiaries of a trust, you have safeguarded that the rest of the world will not be able to take a share. The wealthy have been using trusts to ring-fence their assets for centuries. For more information on trusts see our section 
Family Asset Protection Trust. 
 
 
 

THE CARE ACT ANNEX E DEPRIVATION OF ASSETS 

What is meant by deprivation of assets? (page 376 paragraph 6) 
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. 
 
Has deprivation of capital occurred? ( page 377 paragraph 8) 
It is up to the person to prove to the local authority that they no longer have the asset. If they are not able to, the local authority must access them as if they still had the asset. For capital assets, acceptable evidence of their disposal would be: 
 
(a) A trust deed 
(b) Deed of gift 
Paragraph 11 page 377 
 
There may be many reasons for a person depriving themselves of an asset. A local authority should therefore consider the following before deciding whether deprivation for the purpose of avoiding care and support charges has occurred: 
 
(a) Whether avoiding the care and support charge was a significant motivation. 
(b) The timing of the disposal of the asset. At the point the capital was disposed of could the person have a reasonable expectation of the need for care and support?; and 
(c)Did the person have a reasonable expectation of needing to contribute to the cost of their eligible care needs? 
 
12. For example, it would be unreasonable to decide that a person had disposed of an asset in order to reduce the level of charges for their care and support needs if at the time the disposal took place they were fit and healthy and could not have foreseen the need for care and support. 
 
 
 
 
 
 
 
 
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