Real-Life Case Studies
See how the CRAG guidelines apply in practice through these illustrative examples.
*Names and details are fictional for illustrative purposes.
Mary's Story: Property & The 12-Week Disregard
Understanding how property is treated when living alone.
The Situation
Mary (78) is a widow who lives alone in a house worth £180,000. She has £8,000 in savings. Following a fall, she needs to move into a residential care home permanently. The care home costs £650 per week.
The Assessment
- Step 1Savings: Mary's savings of £8,000 are below the Lower Capital Limit (£14,250). They are fully disregarded.
- Step 2Property: As Mary lives alone, her house is considered a capital asset. However, the 12-week property disregard applies.
- Step 3Outcome: For the first 12 weeks, the Trust helps pay her fees. After 12 weeks, the value of her home is included. She enters a "Deferred Payment Agreement," where the Trust pays the fees as a loan against the future sale of her house.
Key Takeaway
Mary does not have to sell her home immediately. The 12-week disregard gives her family time to prepare, and the deferred payment scheme allows the value of the house to pay for care without a forced quick sale.