Self Deprivation of Assets

Circumstances

Joyce was believed to be a victim of elder financial abuse. A family member, who had control of Joyce’s finances via a Lasting Power of Attorney, had made an application for financial assistance for funding for Joyce’s residential care fees. Joyce’ s assets had been reduced some time previously below a level described as the ‘Upper Capital Limit’ (i.e. £23,250.00). This meant that Joyce would need to contribute towards her care, albeit the local authority provided a support based on a sliding scale. When this figure was reduced below £14,250.00, the local authority would fully fund Joyce’s care.

The matter was referred to the local police, it was considered at length, but a decision was taken that no criminal investigation was to take place, albeit the mater could be re-assessed later. The police rationale was based on the following:

• Joyce had fluctuating mental capacity, although she lacked the capacity to manage her finances she had the capacity to decide whether she wanted the police to investigate the matter as a crime. She indicated that she did not want the police involve

Although the police could investigate matters without Joyce’s consent if it was in her best interests or to protect others from harm; they decided to follow her wishes.

A Safeguarding Adult Practitioner was assigned to make further enquiries, as it was believed that she may have been the victim of elder financial abuse. Those enquiries revealed that Joyce had been persuaded by the attorney to allow her savings to be moved to a location which was out of the reach of the authorities. Although Joyce may have been the victim of abuse, this situation can also be described as a deliberate or intentional self deprivation of assets. The Care Act 2014 gives Local Authorities power to recover care fees from whoever receives the transferred assets in a situation such as this. The attorney had seen those monies transferred as ‘her entitlement’, as ‘her future inheritance’ which would have been dissipated unless she took avoiding action. She took the decision to re-invest the significant amount of monies to further layer them and remove them from reach of the local authority.

Paul was instructed to conduct an in depth financial investigation, with a view to tracing Joyce’s money. In this scenario there were three potential victims; Joyce, who had been induced into agreeing to the movement of her money, the local authority and the public, who ultimately would fund Joyce’s care. The report was used to demonstrate when the funds had been moved and more importantly where they had gone. It was also used to indicate that the attorney had been acting outside of her powers, thereby forming part of the evidence required by the Court of Protection to terminate the power of attorney. With no other family member available to manage Joyce’s finances, a professional Deputy was appointed to act on Joyce’s behalf. Funds were returned to Joyce and used to finance her ongoing residential care.