Decision Makers Guide - DMG45035
Evidence that people no longer have capital
If there is no satisfactory written evidence of a resource's
disposal, the decision maker may
1) conclude that the person still owns an actual capital
resource and
2) if the resource is
- over the capital limit disqualify the
applicant
- take account of tariff income from that capital2
if the resource is below the capital limit.
Note the decision maker should not treat applicant's as having
deprived themselves of any capital which, although placed on trust
for their benefit, comes from a payment made because of personal
injury. For example vaccine damage payments or criminal injuries
compensation
Examples of deprivation of capital include
- making a lump-sum payment to someone else, for
example as a gift or to repay a debt
- spending large amounts of money, for example on
an expensive holiday
- transferring the title deeds of a property
which
- is not the applicant's home or
- will soon cease to be so because, for example
the applicant will be moving elsewhere
- putting money into a trust which cannot be
revoked
- converting money into another form which would
be disregarded, for example, personal possessions
- reducing capital by living extravagantly, for
example
- following a much higher standard of living than
the applicant could normally afford
- using money to pay now for the funeral of
somebody who is still alive
