Quick answer
Holding the family home as tenants in common (rather than joint tenants) is the most common UK technique for partial care-fees protection. The mechanics: each spouse owns a defined share (typically 50/50) that they can leave by will to anyone — usually into a property protection trust in their will, giving the surviving spouse the right to live in the home for life with the deceased spouse’s share ultimately passing to children. The local authority of the surviving spouse generally cannot count the trust’s share in their care-fees means test — protecting roughly half the home’s value. This is widely used and well-established; it is NOT treated as deliberate deprivation because it’s a post-death will-based structure rather than a lifetime gift. The first step is severing the joint tenancy via Form SEV with HM Land Registry. This guide explains how tenants-in-common + property protection trust planning works for UK care-fees protection in 2026.
Last reviewed: 24 May 2026 by the MP Estate Planning editorial team. Jurisdiction: England and Wales. Scotland and Northern Ireland have different probate and intestacy rules; the IHT thresholds are UK-wide.
Three rule changes you may need to consider (2026/27)
1. Pensions become subject to IHT from 6 April 2027. Most unused defined-contribution pension pots currently sit outside the estate for IHT — that ends on 6 April 2027 (gov.uk policy paper). HMRC estimates around 10,500 estates will face IHT for the first time as a result.
2. Business and agricultural property reliefs capped at £2.5m per person from 6 April 2026. Above the cap, only 50% relief applies — effective IHT of 20%. AIM shares dropped to 50% relief and do not use the £2.5m allowance (Saffery — APR/BPR reforms).
3. The NRB, RNRB and £2m taper threshold are frozen until 5 April 2031 following the 2024 and 2025 Budgets (gov.uk — NRB and RNRB freeze). With inflation, more estates will be pulled into IHT each year — a process commonly called “fiscal drag.”
Care Home Fees & Tenants in Common: What You Need to Know
When planning for the future, many people ask: can owning a property as tenants in common protect you from care home fees? The short answer is — it might, but the full picture is more complex. In the UK, care home fees can be significant, and how your home is owned plays a role in whether it’s included in means testing.
This article explores how tenants in common agreements can be used as part of a legal strategy to manage care costs and preserve assets for your loved ones. We’ll explain the difference between joint tenants and tenants in common, what the law says about care fee assessments, and how to take steps to protect your home.
For personalised support on care fee protection strategies, visit our Care Fees Protection page or book a free consultation with one of our estate planning experts.
Understanding Property Ownership: Joint Tenants vs Tenants in Common
How you own your home with someone else affects how it’s treated in legal and financial matters. There are two main types of co-ownership in England and Wales:
- Joint Tenants: You both own 100% of the property. If one of you dies, the other automatically inherits the whole property.
- Tenants in Common: You each own a specific share of the property (usually 50/50, but it can be any ratio). You can leave your share to someone else in your will.
Tenants in common ownership gives each party legal control over their share of the property, making it a valuable tool in estate planning and potential care fee protection.
How Care Home Fees Are Assessed
In the UK, if you require long-term care in a residential facility, the local authority may assess your finances to determine how much you need to contribute. This is known as a means test. Here’s what they look at:
- Your income (e.g. pensions, benefits)
- Your savings and investments
- Your share in any property you own
As of 2024, if your capital exceeds £23,250 in England, you are expected to pay for your own care in full. If your capital is between £14,250 and £23,250, you contribute on a sliding scale. Below £14,250, the local authority covers the cost.
What About the Family Home?
The home is usually included in the means test, but not always. It may be excluded if:
- A spouse or civil partner still lives there
- A relative aged 60 or over lives there
- A dependent child or someone with a disability lives there
If none of these apply, the value of your home could be taken into account, and you may have to sell it to fund care costs — unless you take action in advance.
How Tenants in Common Can Help Protect Your Home
Many couples who jointly own their property convert to tenants in common as part of a care fees planning strategy. Here’s how it works:
- You and your partner change ownership from joint tenants to tenants in common.
- You each make a will leaving your share of the property into a Property Protection Trust for your children or other beneficiaries.
- When the first partner dies, their share is held in trust — not passed to the survivor outright. This means it’s not counted in the survivor’s assets if they later need care.
This strategy doesn’t stop the local authority from assessing the survivor’s half of the property, but it can potentially protect the half held in trust — keeping it safe for your children.
What About Deliberate Deprivation of Assets?
It’s important to note that if you transfer assets specifically to avoid care fees, the local authority may treat this as deliberate deprivation. They can ignore the transfer and still include the value in the means test.
However, converting your home to tenants in common and creating wills with trusts is usually considered legitimate estate planning — especially if done well before care is needed and with professional advice.
To avoid any accusations of deprivation, always seek advice from experienced estate planners or solicitors. Our team at MP Estate Planning can help you book a consultation here.
Example Scenario: Tenants in Common and Care Fees
John and Susan own their home as joint tenants. They decide to change to tenants in common and each make a will leaving their 50% share into a trust for their children. Years later, John passes away. His half of the house goes into trust.
Susan later needs residential care. When the local authority does the means test, only her 50% share of the home is counted. John’s half is in trust and is not available to Susan — meaning it’s protected from care fees.
This is a simplified example, but it illustrates how powerful this strategy can be with proper planning and timing.
Does It Always Work?
No strategy is expected, and the rules around means testing can change. However, planning ahead gives you more options. Owning your home as tenants in common is a practical, low-cost step you can take now as part of wider care fees protection.
Even if you’re not ready to set up trusts or rewrite your wills, changing your property ownership structure can make a difference later on.
Other Tools to Help with Care Fee Planning
- Property Protection Trusts: Built into your will to secure your share of the home for your beneficiaries.
- Asset Protection Trusts: Created during your lifetime to hold and manage your assets.
- Lasting Power of Attorney: Appoint someone you trust to manage your affairs if you lose capacity.
Learn more about how these options work together on our Care Fees Protection page.
Key Takeaways
- Tenants in common lets you own defined shares of a property, which can be left in trust when one partner passes away.
- Using this strategy, the deceased’s share may be protected from future care fee assessments.
- This planning must be done carefully and in advance to avoid deliberate deprivation claims.
- It’s essential to work with qualified professionals for legal and financial guidance.
Conclusion: Start Planning Now to Protect Your Home
Care home fees can seriously impact the assets you hope to pass on to your family — especially your home. Choosing to own your property as tenants in common and using a will-based trust is a smart way to start protecting what matters most.
If you want to explore this option further or get personalised legal advice, book a free consultation today with MP Estate Planning. We’ll walk you through your options and help you make informed, secure decisions.
And for transparent, affordable support, check out our pricing page to see how we can help without breaking the bank.
How the Means Test Works: England and Wales Thresholds Explained
Understanding how local authorities assess your finances is central to any care fee planning conversation. The means test determines how much — if anything — you are expected to contribute towards the cost of residential care. The rules differ depending on whether you live in England or Wales, and it is important to be clear about which regime applies to you.
The Position in England: Care Act 2014
In England, the means test is governed by the Care Act 2014 statutory guidance. Two capital thresholds determine your liability. If your assessable capital — including savings, investments, and in some cases property — exceeds £23,250, you will generally be expected to fund the full cost of your care yourself. This is known as the upper capital threshold. Once your capital falls below £14,250, the local authority typically meets the full cost of eligible care. Between those two figures, a sliding scale known as “tariff income” is applied, reducing the local authority’s contribution incrementally as your capital increases. In most cases, the family home is included in the assessment unless a qualifying disregard applies — for example, where a spouse, civil partner, or dependent relative continues to live there.
The Position in Wales: Social Services and Well-being (Wales) Act 2014
Wales operates a separate framework under the Social Services and Well-being (Wales) Act 2014 and its associated regulations. Since October 2023, the upper capital threshold in Wales has risen significantly to £100,000 — a meaningful difference from the English position. Welsh residents planning around care costs should take advice that specifically reflects the Welsh regime, as rules around property disregards and tariff income may also differ in their application.
What Happens to a Jointly Owned Property When One Owner Enters Care?
Where a property is held as joint tenants, the survivorship rule means neither owner holds a distinct, severable share. A local authority assessing the person entering care will typically seek to value that individual’s interest. In practice, this may result in the council attributing a notional value to an undivided share — though realising that value on the open market can be difficult, and in our experience local authorities do not always pursue immediate sale. By contrast, where a property is already held as tenants in common with clearly defined shares, the assessment is generally limited to the share belonging to the person entering care, provided the co-owner’s separate interest is properly documented and not simply assumed. This distinction is one reason why severing a joint tenancy — whilst both owners are well — can form a meaningful part of a broader estate plan.
Common Questions About Care Fees and Tenants in Common
What are the downsides of tenancy in common?
Holding property as tenants in common does introduce some considerations that are worth weighing carefully. Unlike joint tenancy, your share does not pass automatically to the surviving co-owner — it forms part of your estate and will pass according to your will, or under the intestacy rules if you have no will. This means that without carefully drafted wills — typically mirror wills incorporating a life interest trust — your share could pass to someone other than your partner, potentially giving a new beneficiary the right to occupy or demand sale of the property. There are also administrative steps on death that would not arise with joint tenancy. That said, in our experience these risks are manageable when the change is made as part of a coordinated plan that includes updated wills and, where appropriate, a lasting power of attorney.
What happens to a jointly owned property if one owner goes into care?
If one owner enters residential care, the local authority will carry out a financial assessment. Where the property is jointly owned, the position depends partly on how it is held. A qualifying disregard will generally apply while a spouse or civil partner remains living in the property, meaning it is typically excluded from the means test during that period. However, the disregard does not apply indefinitely in all circumstances, and the position becomes more complex if the property is later sold or the remaining occupant moves out. Taking steps to sever a joint tenancy and document separate shares before either owner’s health deteriorates may give greater clarity over what is and is not assessable.
How much can I have in the bank before I have to pay for care?
In England, if your total assessable capital — including savings and investments, and potentially property — is above £23,250, you will generally be expected to fund your care in full. Below £14,250, the local authority will typically meet the full cost of eligible care. If your capital sits between those two figures, a tariff income calculation will apply. In Wales, the upper threshold is currently £100,000, which means more people in Wales may qualify for local authority support sooner. These figures can change, and we would always recommend checking the current thresholds on GOV.UK or seeking current regulated advice before making any decisions.
Is being tenants in common a good idea?
For many couples who own property together, converting from joint tenancy to tenants in common — combined with appropriately drafted wills — may offer meaningful protections in later life, including in a care fee context. It is not a universal answer, and it will not be the right choice in every situation. The suitability of the arrangement depends on the share structure, the health outlook of both owners, the value of the property relative to other assets, and how the rest of the estate is organised. Our team would generally suggest that this question cannot be answered in isolation: it forms one part of a wider planning conversation.
What is the best way to avoid care home fees?
There is no single guaranteed route to avoiding care home fees, and any arrangement that appears designed solely to reduce assessable capital risks being treated as a deliberate deprivation of assets by the local authority. That said, lawful planning — undertaken at the right time, for legitimate estate planning reasons, and as part of a broader strategy — may help to manage your exposure. Options that are commonly considered include severing a joint tenancy, writing life interest trusts into wills, and in some cases the use of lifetime trusts. The sequencing and combination of those tools will depend on your individual circumstances. We would strongly recommend taking advice from a regulated professional before making any changes to how your property or assets are held.