Assessing the amount of deprived assets

The amount of deprivation is the actual value of the asset the person deprived themselves of.

Generally, the amount of deprivation counted back in, will have regard to the level of resources available to the client.

A client sells their former family home to their child for less than market value.

The difference between the amount received and the actual value at the time, would be the amount of the deprived asset.

A single client applies for a Residential Care Subsidy on 13/11/2020. The client is assessed to have $150,000 current assets and $500,000 worth of deprivation.

If the deprivation is included the client's assets would be assessed as $650,000. The client would be over the asset threshold by $420,000 and not qualify for Residential Care Subsidy.

The client is a beneficiary of a family trust. The trust agrees to pay the client a capital disbursement of $200,000 on 2/12/2020. This is regarded as reasonable for the size of the trust.

Deprivation of $200,000 would be included in the Financial Means Assessment based on the knowledge that $200,000 worth of resources will be made available to the client.

No other resources are available to the client so deprivation of $300,000 is not included. The client is informed that they can re-apply for a Residential Care Subsidy when their assets fall below the threshold.

A single client has deprived themselves of $500,000 that will result in total assets of $650,000 if counted into the financial means assessment. The client is a beneficiary of a modest family trust that has not been providing disbursements to the client.

The trust agrees to pay the client $450 a week. This is the total income generated from the trust's assets. The amount is regarded as reasonable.

The deprived asset of $500,000 is replaced with the actual income figure of $450 per week in an income review.