Robert Keyse, in our Wills, Probate, Tax & Trusts team, explains how you can protect your home and other assets if you are required to self-fund care home fees.
It is well known that if someone goes into care and they own their home it may have to be sold to pay for the care fees.
The rules are complicated and not everyone has to pay for their care in all circumstances but if you are required to self-fund your care, your assets could be rapidly swallowed up.
Consumer group Which? suggests that the average weekly cost of residential care in the South East in early 2026, for someone with dementia who is self-funded, is £1,500. In many cases the fees will be significantly higher.
If you are self-funding the Local Authority will not get involved until the value of your assets drops to £23,250.
Can I gift my property and/or savings to reduce my assets?
Many people are also aware that if you give your property or savings away, to try to avoid paying fees, the Local Authority can challenge any gift(s) on the basis that you are deliberately depriving yourself of assets that might otherwise be available.
However, it is perfectly acceptable for a couple to make Wills to protect the assets of the first person to die from automatically being used towards care fees for the survivor.
It is possible to structure Wills to safeguard the interests of all family members and protect the share of the first to die for the next generation. If prepared properly, this type of Willdoes not cause any issues in relation to tax and can be drafted in a flexible way to make sure that the survivor is properly looked after and can also move if required.
We are often asked to draw up Wills that help clients to achieve these aims and this is a very common and perfectly acceptable way for a couple to organise their affairs.
Protecting your loves ones’ interests
Wills must be very carefully drafted and need to be tailored to each individual family’s circumstances to avoid problems. Effective Estate Planning can make a significant difference to the funds available for the next generation, particularly if the second person to die goes on to live in a care home for a long period of time. Wills can be limited so that they only apply to a property but, if appropriate, other savings or assets can also be protected.
What if a property is owned as “tenants in common”?
There is a misconception that changing the ownership of a property to “tenants in common” might be sufficient to protect against care fees but holding the property in this way does not help in these circumstances if the couple simply leave their respective shares in the property to each other on the first death.
If one owner of a property goes into care and the other remains in their home the property is usually excluded from the assessment but only until the occupier dies. The occupier can make a Will in these cases to safeguard their share of the home on their death.
Advice and guidance
If you believe that these issues may be relevant to you or your family, it is worth considering seeking further advice. This will allow you to review your Will, how the ownership of your assets is structured and whether this type of arrangement may benefit you and your family.
Our Wills, Probate, Tax & Trusts team can advise on Estate Planning, tax and Trusts.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
