Protect My Home From Care Fees is a question many families ask when planning for later life. For many people, their home is the largest asset they own. It is therefore understandable that one of the most common concerns when planning for later life is whether the family home could be used to help pay for care.
The answer is not always straightforward. Whether your home is taken into account when assessing your ability to pay for care can depend on your circumstances, who lives in the property and the type of care you require.
When can your home be included in a care fees assessment?
If you move permanently into residential care, your local authority may carry out a financial assessment to determine how much you should contribute towards your care.
Your savings, investments, income and, in some circumstances, the value of your home can form part of that assessment.
However, your home is not automatically included simply because you move into care.
For example, there are circumstances where the value of the property may be disregarded because certain people continue to live there.
Can I simply give my house to my children?
Giving your home away purely to avoid paying care fees can create serious problems.
A local authority may consider whether you have deliberately reduced your assets to avoid care costs. This is commonly referred to as deliberate deprivation of assets.
There is no simple rule that says giving your property away a certain number of years before needing care automatically protects it.
That is why transferring a home without taking proper advice can be risky.
Can a trust protect my home?
The right approach will depend on your individual circumstances, including how your property is owned, your family situation and what you want to achieve. This is why it is important to take advice before making changes to the ownership of your home or setting up a trust.
Trusts can form part of legitimate estate and later-life planning, but they are not a guaranteed way of avoiding care fees.
Whether a trust is appropriate depends on your individual circumstances and, importantly, the reasons for putting the arrangement in place.
Good planning should consider much more than care fees alone. It may include how you want your property to pass to your family, what protection you want for beneficiaries and how you would like your affairs managed in the future.
When Should I Protect My Home From Care Fees?
The best time to review your arrangements is generally before there is an immediate need for residential care.
Planning ahead gives you time to understand your options properly rather than making important financial decisions during a difficult or stressful period.
Your Will, property ownership, Lasting Powers of Attorney and wider estate planning can all be considered together.
What should I do first?
A review can help you understand how your home is currently owned, what arrangements you already have in place and whether they still reflect your wishes. Taking advice early can also give you more time to consider your options carefully, without feeling pressured into making an important decision.
Start by understanding your current position.
Before changing ownership of your home or setting up a trust, obtain advice based on your individual circumstances. What works for one family may not be appropriate for another.
At Unity Legal, we explain the options clearly and help you understand what may be appropriate for you and your family.
There is no pressure and no unnecessary jargon — just clear, straightforward advice.
Talk to Unity Legal
Call 03333 355875
Visit unitylegal.co.uk
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