C1C2PART 1Care and support

Annotations:
Modifications etc. (not altering text)
C2

Pt. 1 applied in part (with modifications) (1.4.2015 coming into force in accordance with reg. 1(1)) by The Care and Support (Children's Carers) Regulations 2015 (S.I. 2015/305), regs. 1(1), 2(1)(a)(2), 4-12; S.I. 2015/993, art. 2(q)

Enforcement of debts

I1C1C270C1C2Transfer of assets to avoid charges

1

This section applies in a case where an adult's needs have been or are being met by a local authority under sections 18 to 20 and where—

a

the adult has transferred an asset to another person (a “transferee”),

b

the transfer was undertaken with the intention of avoiding charges for having the adult's needs met, and

c

either the consideration for the transfer was less than the value of the asset or there was no consideration for the transfer.

2

The transferee is liable to pay to the local authority an amount equal to the difference between—

a

the amount the authority would have charged the adult were it not for the transfer of the asset, and

b

the amount it did in fact charge the adult.

3

But the transferee is not liable to pay to the authority an amount which exceeds the benefit accruing to the transferee from the transfer.

4

Where an asset has been transferred to more than one transferee, the liability of each transferee is in proportion to the benefit accruing to that transferee from the transfer.

5

“Asset” means anything which may be taken into account for the purposes of a financial assessment.

6

The value of an asset (other than cash) is the amount which would have been realised if it had been sold on the open market by a willing seller at the time of the transfer, with a deduction for—

a

the amount of any incumbrance on the asset, and

b

a reasonable amount in respect of the expenses of the sale.

7

Regulations may specify cases or circumstances in which liability under subsection (2) does not arise.