How do you stop everything you’ve worked for from disappearing? This is not fear-mongering, but the reality behind the question often asked about care home fees.
Discover everything you need to know about protecting your assets from care home fees:
How do you stop everything you’ve worked for from disappearing? This is not fear-mongering, but the reality behind the question I’m often asked, “Can I protect my assets from care home fees?”
I completely understand where this fear comes from. Many people have seen their parents or grandparents spend a lifetime building up savings and property, only for it to be used to fund their care and care home fees.
In today’s article, I want to approach this conversation with honesty and balance, because the truth matters, but there is an answer.
There are strict rules around something called deliberate deprivation of assets. If you try to give away money or property specifically to avoid paying for care, the local authority can and will challenge it.
There’s also no fixed time limit, no automatic “safe” period, and no guaranteed cut-off to this. Local authorities have investigated transactions from many years prior and challenged them. If care was a foreseeable need at the time that assets were transferred, they can question it. Additionally, if mental capacity has declined, it may fall to your attorneys to defend those decisions.
Below, I’ll address a few misconceptions that I regularly hear:
Trust-Based Wills for Couples
This is one of the most effective legitimate strategies. If a couple owns a property jointly, we can structure the will so that when the first partner dies, their half of the property is protected in a trust. The surviving partner can continue living in the property, and that half is ring-fenced for chosen beneficiaries.
The key point here is that the person who has died does not need care. There, this is not deprivation. If the surviving partner later requires care, only their half of the property is assessed.
Please note that this must be done early, and ideally while both partners are healthy.
Financial Planning
Money equals choice – there’s not really any way around that. Building pension income, investments, and alternative income strategies gives flexibility later down the line. This can mean renting out a property, covering fees without selling the home, and then staying in preferred accommodation.
Please note that Heritage Estate Planning are not financial advisers, but we work alongside trusted professionals, because we know that early planning makes a significant difference.
Staying at Home with Domiciliary Care
Many people do not move into residential care. If care is provided at home and you remain living there, the property is not assessed. For some families, domiciliary care becomes the preferred solution.
Sometimes, parents focus entirely on preserving their inheritance for the benefit of their children. But when we speak to their children, the response is often “I don’t want the money if it means Mum or Dad is somewhere they hate.”
Having resources allows you to choose a home near your family, access to outdoor space, a comfortable environment, and stability and continuity. Without those resources, your options become a lot more limited.
Similarly, if capacity declines, someone must deal with the financial assessments, social services, and care providers. A Lasting Power of Attorney ensures someone you trust can advocate for you. Without it, families may face delays and court applications at the worst possible time. It’s one of the most important, protective steps we recommend, and important to consider when looking at your resources.
The answer to this question, is that you may not be able to eliminate care costs entirely. But you can protect part of your estate, structure assets properly, retain control, and preserve your choice in the matter.
The key is early, legitimate planning. At Heritage Estate planning, we don’t promise unrealistic solutions, but we help you protect what you can with safe solutions, and with clarity.
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