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Part 2 – ‘It’s not going to be £86,000’ – getting to grips with care costs

Check your answers

1. What are the key elements when determining whether deprivation of assets has occurred?

a) Whether advised or not

b) Whether trusts have been used or not

c) Intent and timing

d) Intent and asset purchased

 

2. Assuming no depravation when are investment bonds disregarded capital for care assessment?

a) When they contain smoothed funds

b) When they contain an element of life insurance

c) When they invest in insurance company funds instead of direct 

d) When they are on a capital redemption basis

 

3. The proposed £86,000 cap on care costs relates to

a) All care costs incurred by the person in need of care (including local authority payments)

b) All care costs paid for by the person in need of care (including accomodation costs)

c) All 'personal' care costs incurred by the person in need of care

d) All 'personal' care costs incurred by the person in need of care minus any payments made in excess of the local authority rate to meet said needs and any optional top-up payments

 

4. The proposed £86000 cap on care costs and the revised means test to determine the extent of any local authority support are scheduled to come into effect

a) In October 2023 for all local authorities in England

b) In January 2023 for all local authorities in England

c) In October 2023 for the majority of local authorities in England (true)

d) In January 2023 for the majority of local authorities in England

 

5. The statutory guidance to the Care Act 2014 stipulates that currently for those living in England with eligible assets of, for example, £20,000 their local authority will

a) Pay the total cost of their care needs

b) Pay for some of their care needs

c) Pay for some of their care needs subject to tariff income being added to other eligible income to determine ability to pay

d) Pay for all of their care needs when their assets fall below £14250

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