Power of Attorneys and Deputies
The duties and responsibilities when dealing with financial affairs.
Investment bonds and long-term care (excluding England)
Discover how investment bonds impact care and support means tests, including distinctions between capital and income, and asset deprivation concerns in assessments.
Learn how investment bonds* affect long‑term care funding in the UK
The obligation to provide residential accommodation ‘for persons who by reason of age, illness, disability and other circumstances, are in need of care and attention which is not otherwise available to them’ is placed on local authorities under section 21 of the National Assistance Act 1948. There is also additional legislation that has been passed in constituent countries of the UK.
For clients facing the possibility of residential care, the treatment of different assets in means‑tested assessments is critical.
This briefing note explores how investment bonds are treated in long‑term care financial assessments outside England, including when they may be disregarded as capital and when income from bonds is taken into account. It also considers the deprivation of assets rules and regulatory expectations, helping advisers navigate this sensitive area with confidence.
Read more about Investment bonds and long-term care assessments.
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*Whole of Life Assurance Policy or Capital Redemption Bond