CASE STUDY - £400,000 Property Disregarded - A Fantastic Care Fees Outcome!

£400,000 Property Excluded from Care Fees Assessment - Discretionary Disregard Applied

Every so often, a case comes along that demonstrates why well-prepared compelling representations really matter. We recently acted for a family whose elderly relative had moved into residential care following a deterioration in health. With capital reserves quickly reducing towards £23,250 the local authority — which we will call South Wood Local Authority — intended to carry out a financial assessment and to decide whether a property worth around £400,000 should be taken into account.

We invited the authority to exercise its discretion under the Care Act guidance, drawing particular attention to the well-known "Penny and Jane" example in Annex B. That guidance recognises that there are circumstances where fairness, family commitment and personal hardship justify a property being disregarded, even where the standard rules might suggest otherwise.

The family member involved had devoted years to supporting and caring for their loved one, often at considerable personal and financial cost. In our view, the circumstances fitted precisely the type of case the guidance was designed to protect.

I am pleased to say that the local authority agreed.

The outcome was significant:

• Full discretionary disregard of the property granted.
  

• Around £400,000 removed from the financial assessment.
  

• Assessable capital reduced below the relevant funding threshold.
  

• Ongoing care costs assessed by reference to income rather than the value of the home.
  

• Greater financial security and peace of mind for the family.
  

Most people assume that a person's house will automatically be included when care fees are assessed. That is not always the case. Local authorities have powers to depart from the standard approach where the circumstances genuinely warrant it.

For our client, what appeared to be an inevitable £400,000 problem, became a complete property disregard and a great deal of reassurance at a difficult time.

That is a result worth celebrating.

Robert Howard Wills & Powers – helping families navigate care fees, Powers of Attorney and later-life planning with practical, experienced advice.

Phone 07803 276780 and ask for Robert Howard