PART 1

Care and support

Enforcement of debts

Transfer of assets to avoid charges
70
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.
Pt. 1 modified (1.4.2015) by The Care and Support (Isles of Scilly) Order 2015 (S.I. 2015/642), arts. 1, 2(2)(a); S.I. 2015/993, art. 2(a)
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)
S. 70 in force at 1.4.2015 by S.I. 2015/993, art. 2(q) (with transitional provisions in S.I. 2015/995)