England & Wales Guidance

Can the Care Home Take My House?

Care homes do not take houses, but your local authority can include your home in a means test for care fees. This clear guide explains when the family home is protected, when it can be counted, how the 12-week property disregard works, what a deferred payment agreement is, and how wills and trusts help safeguard your share.

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Care home fees and the family home explained

Understanding Care Fees

How Paying for Care Works

If you move into a care home permanently, your local authority will do a financial assessment. This looks at income, savings, and sometimes the value of your home. The rules come from the Care Act 2014 and the statutory guidance for England and Wales.

Capital Limits

In England the upper capital limit is £23,250 and the lower limit is £14,250. Above £23,250 you usually self-fund. Between the limits you contribute. Below £14,250 the council pays more and you contribute from income.

When the Home Counts

If you live alone and move into care permanently, the home can be included after the 12-week property disregard unless an exemption applies.

12-Week Disregard

For the first 12 weeks after moving into permanent care, the value of your main home is ignored to give time for decisions and advice.

Deferred Payment

If the home is counted, a Deferred Payment Agreement lets fees be paid later from the property sale, so you do not need to sell quickly.

Plain-English summary:

Care homes do not take houses. The council may assess your home’s value to decide how much you pay. There are clear exemptions that protect your home while certain people still live there.

Home Protections

When Your Home Is Not Counted

Your main home is ignored in the means test if protected residents live there. These rules are set out in the Care Act 2014 guidance for England and Wales.

Spouse or Civil Partner

If your spouse or civil partner lives in the home, it is disregarded while they live there, even if they are not on the deeds.

Dependants and Older Relatives

The home is ignored if a dependent child under 18 lives there, or a close relative aged 60 or over, or a disabled relative of any age.

Carers and Former Partners

In some cases it is also ignored for a former partner or carer who gave up their home to care for you and continues to live there.

Temporary Absence

If your move to care is temporary, the home is not included. Only permanent care triggers the property rules.

Important:

If no protected person lives in the property after the first 12 weeks, the home can be included in the means test. A Deferred Payment Agreement may then be offered so you do not have to sell quickly.

Your Estate In Practice

Home Ownership, Savings, and Joint Property

These are the areas that create most confusion. The type of ownership and how your finances are arranged affects the outcome.

Your Home and the 12-Week Disregard

If you move into permanent care and no protected person remains in the home, the property is ignored for the first 12 weeks. This gives time to consider options, including a Deferred Payment Agreement, renting the property, or selling on your own timetable.

The first 12 weeks are disregarded
Protections apply while certain relatives live there
Consider advice before making decisions

Joint Tenants vs Tenants in Common

Joint tenants means the survivor owns the whole property on death. Tenants in common means each owns a share. Many couples choose tenants in common and use a Property Protection Trust in their wills so the first person’s share is protected for children and not counted as the survivor’s asset.

Joint tenants passes the whole home to the survivor
Tenants in common allows trust protection for a share
Proper wills help ringfence half the property

Savings, Pensions, and Life Policies

Sole savings are counted in the means test. Keep pension and life policy nominations up to date because many pay to nominated beneficiaries outside the estate. This can ease cash flow for family while assessments are ongoing.

Keep a simple asset list for family
Review nominations regularly
Seek advice on timing and tax

Typical Timeline: Assessments and arrangements can take several weeks. Full administration of an estate or property sale can take months. Planning early reduces delay.

Facts vs Myths

Deprivation of Assets and Deferred Payment Agreements

It is important to plan sensibly. Giving assets away at the wrong time can cause problems. Using recognised legal tools keeps you protected.

Deprivation of Assets

If you give away money or your house to avoid paying care fees, the council can still treat you as owning it. Timing and intention matter. Proper wills and trusts put in place early are usually acceptable planning.

Life Interest and Property Trust Wills

A Property Protection Trust Will can place your share of the home in trust on first death. The survivor can live there for life, while your share is safeguarded for your chosen heirs and is not treated as the survivor’s asset.

Deferred Payment Agreement

Where the home is included, a Deferred Payment Agreement lets the council pay fees and recover the cost later from the property. This avoids rushed sales and keeps control with the family.

What Good Planning Looks Like

Keep wills up to date, consider tenants in common, use trust wills where suitable, put LPAs in place, and avoid last-minute gifts without advice.

Simple takeaways:

Care homes do not take houses. The council may assess value. Protected residents keep the home ignored. Trust wills can safeguard a share. Avoid last-minute transfers that may be classed as deprivation.

Common Questions

Frequently Asked Questions About Care Fees and Property

Clear answers to the questions families ask most. If you need personal guidance, our team can help.

No. The council cannot force a sale. If the home is counted after the 12-week disregard, a Deferred Payment Agreement is usually available so fees are repaid later from the property value. If a protected resident lives there, the home is not counted.

Yes. If your spouse or civil partner lives in the home, it is disregarded in the assessment while they live there. The same applies for a dependent child under 18, a close relative aged 60 or over, or a disabled relative living there.

Usually not. If the council believes you transferred the home to avoid care fees, it can still treat you as owning it. There may also be tax and legal risks. Proper wills and trust planning put in place early are safer options.

The upper capital limit is £23,250 and the lower limit is £14,250. Above the upper limit you normally self-fund. Between the limits you contribute on a sliding scale. Below the lower limit the council pays more and you contribute from income.

Each partner owns a share as tenants in common. On first death, that share goes into a trust. The survivor can live in the home for life. The trust share is protected for chosen beneficiaries and is not treated as the survivor’s asset for means testing.

The principles are similar but rules and thresholds differ. This guide covers England and Wales. If your property is in Scotland or Northern Ireland, take local advice to confirm the position.

Need personal guidance?

Speak to a experienced advisor. We explain your options in plain English, help with wills, trusts, and LPAs, and keep everything compliant.

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