Alarmingly, 2 million older adults currently have unmet care or support needs-ranging from difficulty bathing to walking across a room. Additionally, access to long-term publicly funded social care has fallen from 8.2% of older adults in 2003/04 to 3.6% in 2023/24, suggesting the system is struggling to keep pace.
It’s no wonder then that one of the most common questions we hear from clients is:
“How can I protect my home from having to be sold to pay for care home fees?”
For many families, the home is their main asset. The thought of it being sold to fund care costs can be worrying. While there are no guaranteed ways to completely avoid care home fees, there are legal options worth considering-some more effective and safer than others.
Can You Gift Your Property to Avoid Care Fees?
A common misconception is that gifting your home to children or other beneficiaries during your lifetime will stop it from being included in care fee assessments. While this may sound appealing, in practice it carries significant risks:
- Loss of control – once gifted, the property no longer belongs to you, meaning you cannot control what happens to it.
- Risk from third parties – if your beneficiary divorces, becomes bankrupt, or passes away, your home could form part of their financial settlement or estate.
- Challenge from the local authority – councils can treat the gift as “deliberate deprivation of assets” if they believe it was done to avoid care fees, meaning the property could still be included in assessments.
Because of these risks, gifting is rarely the safest solution.
Using Trusts to Protect Your Home
Another option is to place your property into a Trust. This can provide some protection from care fees while allowing you to retain the right to live in your home. Trusts can be flexible and tailored to your family’s needs, but there are some important considerations:
- Trustees must be reliable and available to act.
- Professional trustees may incur ongoing costs.
- Local authorities may still challenge a Trust if they believe it was set up primarily to avoid care fees.
For many families, using Trusts within Wills can offer a more balanced solution.
Protecting Your Home Through Your Will
A carefully drafted Will can provide that, on the first death of a couple, a share of the property passes into a Trust. The surviving spouse or partner can still have the right to live in the home, while the capital value is preserved for your chosen beneficiaries.
This type of Will Trust can be structured to allow flexibility – for example, enabling the survivor to downsize or move to a new property – while ensuring that your share of the estate is protected for future generations.
Planning Ahead with Expert Advice
Every family’s situation is different, and the right approach will depend on your circumstances. Seeking advice from an experienced solicitor is the best way to ensure your home and assets are protected in a way that works for you and your loved ones.
We can guide you through the options available and help you put the right protections in place.
Disclaimer: The information provided on this blog is for general informational purposes only and is accurate as of the date of publication. It should not be construed as legal advice. Laws and regulations may change, and the content may not reflect the most current legal developments. We recommend consulting with a qualified solicitor for specific legal guidance tailored to your situation.
Written by Kathryn Thornewill TEP
Associate Partner, Wills Trusts and Estate Planning at Franklins Solicitors LLP
Specialises in estate administration, Wills, Lasting Powers of Attorney, Court of Protection, and inheritance tax planning. Kathryn is STEP-qualified and delivers tailored, client-focused advice.
With extensive experience across private client work, Kathryn supports individuals and families in planning for the future and protecting their assets. Her STEP qualification highlights her depth of knowledge in trusts and estates, and she is often praised for providing clear, practical guidance on complex matters.
Kathryn is known for her friendly and approachable manner, providing clients with professional and efficient support during difficult times. She advises a wide range of clients, from business owners managing estate and shareholdings to families preparing Wills for loved ones.
She works closely with accountants, financial advisors, and colleagues in Property and Corporate teams to ensure comprehensive, tailored advice.
Outside work, Kathryn enjoys walking and visiting family and friends.
