Can I Stop My House Being Sold to Pay for Care?

Sometimes yes, sometimes no — but many of the "solutions" you'll read about online either don't work or are illegal. Here's the honest truth about protecting your home from care costs.

This is one of the most common worries in estate planning, and unfortunately it's surrounded by misinformation. Let's separate fact from fiction.

The Honest Truth

If you need care and have assets above the threshold (currently £23,250 in England), you'll be expected to contribute to your care costs. Your home is potentially included in this calculation.

You cannot:

• Give away your house to avoid paying for care you'll need
• Transfer assets once care is foreseeable
• Hide assets from the local authority

But there are legitimate strategies that can help.

When Your House IS Included

Your home's value counts toward your assets when:

• You're going into permanent residential care
• No one exempt lives there (see below)
• You own the property outright or have equity in it

When Your House Is Protected

Your home is disregarded (not counted) if any of these people live there:

• Your spouse or civil partner
• A relative aged 60+
• A relative who is disabled
• A child under 18 whom you're responsible for

It may also be disregarded if a carer who gave up their own home to care for you lives there.

What Doesn't Work

1. Giving Away Your House to Avoid Care Fees

If you transfer your house to avoid paying for care, the local authority can:

• Treat you as still owning it — "deprivation of assets" rules apply
• Assess you as if you still had the money — you'll still be charged full fees
• In extreme cases, recover the asset — from whoever you gave it to

The test: Was avoiding care fees a "significant operative purpose" of the transfer? If yes, it's deprivation of assets.

2. Transferring Property Into a Trust

Many schemes promise trusts will protect your home. In reality:

• If you benefit from the trust, its assets can be included in your assessment
• Transfers into trust can still be deprivation of assets
• These schemes often cost thousands and achieve nothing

3. Adding Children to the Deeds

Making your children joint owners:

• Doesn't necessarily protect your share
• Can trigger deprivation of assets rules
• Has CGT and inheritance tax implications
• Puts your home at risk if they divorce or go bankrupt

What CAN Work

1. Deferred Payment Agreement

This is a legitimate way to avoid selling your home immediately:

• The council pays your care fees
• A charge is placed on your property
• The debt is repaid when you die or the property is sold
• Your family can still inherit any remaining equity

This doesn't avoid care fees — it delays them. But it means your home isn't sold while you're alive.

2. Planning Early (Before Care Is Needed)

If you plan well in advance — years before any care need is foreseeable — you have more options:

• Downsizing: Moving to a smaller property and giving some capital to children
• Lifetime gifts: Gradually reducing your estate over many years
• Life interest trusts: For married couples, protecting the first-to-die's share

Key timing: These strategies must happen when you're healthy with no foreseeable care needs. Doing this when care is likely = deprivation of assets.

3. Severing the Joint Tenancy

If you own your home jointly with a spouse:

• As "joint tenants" — the whole property passes to the survivor automatically
• As "tenants in common" — you each own a defined share

Converting to tenants in common means:

• The first spouse's share can go to children in their will
• The surviving spouse retains the right to live there
• Only the surviving spouse's share is assessed for care fees

This is sometimes called a "life interest trust" or "property protection trust."

4. NHS Continuing Healthcare

If your care needs are primarily health-related:

• You may qualify for fully NHS-funded care
• This is means-test free — your assets aren't assessed
• Your house is completely protected

But: NHS Continuing Healthcare is difficult to qualify for and often wrongly refused. You may need to appeal.

5. 12-Week Property Disregard

When you first enter permanent care:

• Your property is disregarded for the first 12 weeks
• This gives time to arrange finances
• The council can't force an immediate sale

Protecting Your Spouse

If your spouse remains at home while you go into care:

• Your home is automatically disregarded
• Only your share of savings is assessed
• Your spouse can remain in the home indefinitely

The main issue comes when the second spouse also needs care.

Realistic Planning

Accept Some Costs

Quality care costs money. If you have assets, you'll likely pay something. The goal is ensuring fair treatment, not avoiding all costs.

Understand the Limits

Once your assets drop below £23,250, the local authority pays your care fees. The cap doesn't apply to accommodation costs ("hotel costs"), only care itself.

Get Proper Advice

Avoid companies selling expensive "care fee protection" schemes. Instead:

• Talk to a proper estate planning solicitor
• Get independent financial advice
• Be wary of anyone guaranteeing protection

Common Scenarios

Scenario 1: Healthy Couple in Their 60s

Options: This is the ideal time to plan. Consider tenants in common ownership with life interest trusts. Maximum flexibility, no deprivation risk.

Scenario 2: Parent Just Diagnosed With Dementia

Options: Limited. Care is now foreseeable, so asset transfers risk being challenged. Focus on getting proper assessments, understanding what care they actually need, and considering deferred payment if residential care becomes necessary.

Scenario 3: Parent Already in Care Home

Options: Deferred payment agreement to avoid immediate sale. Ensure they're not paying more than they should. Check NHS Continuing Healthcare eligibility. Accept that assets will likely be used for care.

The Old Way vs Our Way

The Old Way	Our Way
Fall for expensive "protection" schemes	Understand what actually works legally
Panic and make hasty transfers	Plan early when healthy
Try to hide assets	Use legitimate strategies properly
Pay full fees without question	Ensure correct assessment and explore all options