Q&As

A husband and wife jointly own a property as tenants in common. One spouse has dementia and lives in a care home, with the other spouse aged over 60 and therefore a property disregard applies. If the spouse living in the property wishes to move, but requires use of 100% of the sale proceeds (including the 50% share belonging to the spouse residing in the care home), Is this permitted? Will the property disregard be transferred to the new property?

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Published on LexisPSL on 10/09/2020

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • A husband and wife jointly own a property as tenants in common. One spouse has dementia and lives in a care home, with the other spouse aged over 60 and therefore a property disregard applies. If the spouse living in the property wishes to move, but requires use of 100% of the sale proceeds (including the 50% share belonging to the spouse residing in the care home), Is this permitted? Will the property disregard be transferred to the new property?

We have assumed that the person who is residing in the care home is a permanent resident in the care home and not a temporary resident.

The means testing rules for the provision of care services by a local authority are set out in regulations made pursuant to section 14 of the Care Act 2014. The Care and Support (Charging and Assessment of Resources) Regulations 2014, SI 2014/2672, Sch 2, specifies categories of capital which are disregarded in an assessment of a claimant’s resources. In the paragraphs below, we refer to the Care and Support (Charging and Assessment of Resources) Regulations 2014, SI 2014/2672 as ‘the 2014 Regulations’.

Sch 2 to the 2014 Regulations includes provisions as to the disregard of the value of any beneficial interest in property owned by the resident of a care home in the assessment of that person’s liability to make a financial contribution towards their care.

Sch 2, para 4 provides that, where a person (‘the claimant’) is residing in a care home, the value of any premises occupied in whole or in part by the claimant’s ‘partner’ as their home, which would be disregarded for the purposes of the Income Support (General) Regulations 1987 (the IS(G) Regs 1987), SI 1987/1967, Sch 10, is disregarded.

‘Partner’ is defined in the IS(G) Regs 1987, SI 1987/1967, re

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