If the person with dementia is the legal owner (as per the paperwork when they buy it) then even if they get someone else to drive it - eg by giving it to a relative - and that person becomes the registered keeper, it doesnt change that the PWD is still the legal owner and the car therefore remains their asset. If the car is still their legal asset and is used for their benefit, then there has been no deprivation of assets.
The problem here is that the PWD is
not the legal owner, although he paid over £10,000 for it. So,
on paper it looks like he gave this money to
@Jim52 so that Jim could buy himself a brand new car. I know that this was not the intention, but the LA is becoming increasingly more picky as they get more strapped for cash and they might just decide that Jims dad had given him a gift of £10,000. They might not, of course, but its a bit of a grey area, which is why
@Normaleila suggested that Jim signs the ownership (not the register keeper) over to his dad so that his dad is the legal owner - which is what should have happened in the first place.
There seems to be some confusion on here about the difference between being the legal owner and being the registered keeper.