Your Property and Care Home Fees
As we live longer, more families are facing the reality of paying for long-term care. In the UK, if you need to move into a care home, the cost can be significant—sometimes thousands of pounds per month. What many people don’t realise is that your home and savings may be used to cover those fees. Without proper planning, this could mean little is left to pass on to your loved ones.
The good news? With the right advice, there are legal ways to protect your property and safeguard your family’s inheritance.
How Care Home Fees Are Assessed
When you go into care, the local authority will carry out a financial assessment. They’ll look at your:
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Savings and investments
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Income
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Property (including your home, unless your spouse or partner still lives there)
If your assets are above the threshold (currently £23,250 in England), you may have to pay for your own care in full. This can quickly eat into your estate.
Ways to Protect Your Property from Care Fees
1. Joint Ownership (Tenants in Common)
If you own your home with a partner or spouse, changing the ownership structure to tenants in common allows you each to own a distinct share. Through your will, you can leave your share in trust for your children rather than directly to your partner. This way, if your partner later needs care, only their share may be assessed.
2. Property Protection Trust Wills
A Property Protection Trust Will ensures that your share of the home passes into trust when you die, rather than to your partner outright. This means that your children or chosen beneficiaries are safeguarded, even if your surviving partner goes into care.
3. Gifting Property (with Caution)
Some people think about giving their home to children during their lifetime. However, this can be risky and not something we generally advise. Local authorities can view this as deliberate deprivation of assets if the gift was made to avoid care fees. It can also create tax implications. Always take legal advice before considering this route.
4. Trusts for Asset Protection
Setting up a trust can sometimes be a way to protect property and savings. However, the rules are complex, and not all trusts provide protection from care costs. Professional guidance is essential here. Trust can, however, be a great tool to avoid probate delays and some costs.
Why Early Planning Matters
The earlier you take advice, the more options you’ll have. Waiting until care is needed can limit your choices and make it harder to protect your property.
Protect Your Home, Protect Your Family
Your home is likely your most valuable asset—and a symbol of your life’s work. With proper estate planning, you can reduce the risk of it being lost to care home fees and ensure more of your wealth passes to the people you love.
👉 Speak to a specialist today to explore your options and start protecting your property for the future.
📞 Call 01777 712 733 now or 📩 email hello@olivetreelaw.co.uk .
