Protecting Your Home Against Care Fees

When planning for future care needs, protecting your home against care fees is a critical concern for many individuals. We outline below strategies and considerations to help safeguard your property while ensuring compliance with the law.

1. Understand the Rules for Care Fees

Local authorities assess care fees based on your financial means, including income, savings, and assets. If your assets exceed a specific threshold (e.g., £23,250 in England in 2024), you may need to contribute toward care costs. Your home may be included in this assessment unless:

• A spouse or partner resides there.
• A dependent under 18 lives there.
• A close relative who is incapacitated resides there.

2. Strategies to Protect Your Home

a. Establishing a Trust

• How it Works: Placing your home in a trust can shield it from being counted as part of your estate.
• Types of Trusts:
  • Property Protection Trust: Ensures a spouse can continue living in the home while safeguarding half the property for beneficaries.
• Advantages: Maintains control over the asset and can protect it from care fee assessments if done correctly.
• Considerations: Trusts must be set up well before care needs arise to avoid suspicions of deliberate deprivation.

b. Equity Release Plans

• How it Works: These allow you to access the value of your home while retaining residence.
• Drawback: Equity release can reduce the amount passed on to heirs and complicate financial assessments.

3. Insurance Solutions
Long-term care insurance policies can cover future care costs, protecting your assets, including your home. These policies require upfront investment but offer peace of mind and financial security.

4. Plan Early
Proactive planning is crucial. Waiting until care is imminent can severely limit your options and make asset protection more challenging.

5. Seek Professional Advice

Specialist financial and legal advisors can provide tailored solutions based on your circumstances. We have the expertise in care planning to help ensure compliance with the law and avoid pitfalls like deliberate deprivation claims.

6. Alternative Support Options
Explore government programs, such as deferred payment schemes, which allow you to keep your home and defer care costs until after the property is sold.

Conclusion

Protecting your home against care fees requires early action, a clear understanding of the rules, and professional advice. Strategies such as trusts or insurance can offer protection, but each comes with risks and considerations. By planning ahead, you can ensure your home remains a secure asset for your future and your family.