Receivership / Depravation of Capital

[chappers]

Hello, am new to the forum. I am in the process of applying to be a receiver for my father in law who has dementia.

I have a few questions which i would appreciate your comments on.

1. The Application process to be a receiver. For those that have done this, how long has it taken to complete, and to get approval to become the receiver ?

2. Depravation of Capital : My father in law has an investment bond which matured at the end of July 07. It is currently waiting to be either cashed or reinvested.

The amount has been taken into account already, by social services, when they worked out how much my father in law has to contribute to the care home he is in.

If i am approved as receiver, and i believe that it is in his best interests to reinvest the money, does this then mean that money will no longer be used when calculating his contribution to care home costs, and that it should be recalculated ? Or, will it be seen as depravation of capital ?

 

[jenniferpa]

I can't speak to the time frame, but I think you might be operating under a misapprehension regarding the capital. Whether it's invested or kept as liquid cash, it is still capital and included in any calculations, even if it placed in some form of bond which means it's not easily accessible. Deprivation of capital only comes into play if it is disposed of in some way: given as a gift or similar.

 

[Nebiroth]

Indeed. Capital is capital, no matter how hard it is to get at or what the penalties are for withdrawing it.

If you told the local authority that six months interest would be lost for withdrawing the bond ahead of time...they would say "...and so what?"

Deprivation of assets is when you deliberately give things away - as gifts for example.

 

[Skye]

If i am approved as receiver, and i believe that it is in his best interests to reinvest the money, does this then mean that money will no longer be used when calculating his contribution to care home costs, and that it should be recalculated ? Or, will it be seen as depravation of capital ?

I'm just wondering if you were thinking of investing the money in your own name (purely for convenience, of course)?

This would be considered deprivation of assets. As the others have said, if the money is re-invested in your fil's name, then it will still be his.

 

[chappers]

I'm just wondering if you were thinking of investing the money in your own name (purely for convenience, of course)?

No, was not considering that, just really trying to grasp the rules. They can be quite confusing.

Another question. He is also receiving some inheritance money. Presumably when this gets placed into his receivership account, that will also be included in the calculations for his contributions to the care home costs ??

 

[Skye]

Fraid so, chappers!

I wasn't accusing you of anything, but I know the rules are difficult to follow, and we've had cases before where people have put money into their own name for convenience, with terrifying results.

No offence, I hope?

 

[chappers]

No offence taken.

Thanks for your advice.