Daily top tip: How to protect your home from care fees

Published 19/10/2011

Please note: This article was published prior to July 2022, and some information may be outdated.

Take advice before you move out of your home

The Intergenerational Foundation has today suggested that elderly people should be encouraged to move out of their homes into smaller ones – to free up housing stock.

However, what has not been mentioned is the significant financial risk to those elderly people, should they subsequently need care.

If you need full-time care, you don’t necessarily have to go into a care home; you can choose to receive full-time care at home instead. And if you need nursing care, this should be funded by the NHS. However, if you’ve moved into smaller accommodation, there may no longer be space for a live-in carer or nurse.

If you find yourself being means-tested, remember this: Your home is currently protected against being taken to pay for care if:

your partner still lives there

a younger relative still lives there who is incapacitated

your former partner (divorced or estranged) still lives there and is a lone parent

a dependant under 16 lives there

a relative over 60 lives there (or in some circumstances a friend who has been caring for you for some time and for whom the property has become their home)

However, if you’ve already moved into smaller accommodation, it may not be possible for these people to live in your home and, when that happens, you may no longer be able to protect it.

Always take sound financial advice before you make any decisions about your property or your other assets – and make sure the adviser you see can clearly demonstrate that they understand care fees.

If you currently need full-time care for health needs, the NHS may have a duty to pay 100% of the costs. You’ll find lots of practical tips and advice in our guide, ‘How To Get The NHS To Pay For Care‘.

Tagged Categories: Care fees, Care homes and hospitals, CHC essentials, Initial advice, Legal and financial matters, Legal and money matters

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5 Comments

Sarah August 9, 2020 at 3:57 pm

My grandad was recently asked if he wanted to sell his own home to live in a care home instead? He is wanting to pass his house onto me and my sister's once he dies, so there's no point in selling it. He doesn't even need to be in a care home. Pathetic how elderly people are always being asked to move into care homes? Why should they? Just because someone is over age seventy, it doesn't mean they have stopped being able to do things for themselves. It's age discrimination. He just replied with "No I'm happy enough to pass away in my own home thanks!". Right on. I think if he started living an a care home, he'd pass away a lot sooner than he is going to, because care homes do not make quality of life better. They make it worse. Especially mentally.

melanie pursglove October 27, 2016 at 9:33 pm

What is the situation on property which is jointly owned i.e. my mother and myself her daughter. It is my residential home. I believe that the Palfrey case (?) may have established a case where the house would need to be nil rated as a portion of it could not be valued. However, I have my suspicions that the LA would still seek to place some sort of charge on the property

Angela Sherman November 2, 2016 at 12:04 pm

Hi Melanie, this may help - see page 13 of this AgeUK Factsheet: http://www.ageuk.org.uk/documents/en-gb/factsheets/fs38_treatment_of_property_in_the_means-test_for_permanent_care_home_provision_fcs.pdf?dtrk=true

Rob October 19, 2011 at 9:14 am

Such good advice. I know so many elderly people who make decisions because they believe it's expected of them, rather than being in their own best interest.

Angela November 14, 2011 at 2:35 pm

Thanks Rob, Yes, I think the older generation is more 'compliant', and so elderly people are at much greater risk of losing out in a care system that is anything but fair,