How to Avoid Care Home Fees UK

Many people are surprised to learn that care home fees in the UK can reach £50,000 or more per year. If you own property or have savings, you may be expected to fund your own care. But with smart planning, it’s possible to legally avoid or reduce care home fees and protect your estate for future generations.

In this guide, we explain how to avoid care home fees in the UK using proven estate planning strategies. We’ll explore how trusts work, what local authorities consider when means-testing your finances, and the best steps to take before it’s too late. If you’re concerned about losing your home or life savings to care costs, this article is for you.

For more details on tailored strategies, visit our dedicated page on Care Fees Protection.

Why Care Home Fees Are a Growing Concern

Care costs in the UK have been rising steadily due to increased demand and limited government funding. If your assets exceed the threshold (£23,250 in England), you’ll likely have to pay your own fees in full.

This has made many people—especially homeowners—seek legitimate ways to protect their property from being used to fund future care. Without planning, your home may need to be sold to pay for residential or nursing care.

Key Thresholds in England

• Below £14,250: The local authority pays, and you contribute from income
• Between £14,250 and £23,250: You contribute on a sliding scale
• Above £23,250: You’re considered self-funding

These thresholds exclude personal belongings and some types of pensions but include the value of your home unless a spouse or dependent still lives there.

How to Avoid Care Home Fees Legally

There are several legitimate ways to protect your estate from care home costs. These approaches must be implemented early—well before care is needed—to avoid issues with deprivation of assets, where the local authority deems you’ve given away assets to avoid paying fees.

1. Use a Property Protection Trust

A Property Protection Trust (also known as a life interest trust) allows you to place your share of the home into a trust while still living in it. This strategy is commonly used by couples in their wills:

• When one spouse dies, their share of the home is placed in trust
• The surviving spouse retains the right to live there for life
• If the survivor later requires care, only their half is assessed

This type of trust is effective because the deceased spouse’s share of the property cannot be taken into account for care fees, helping preserve the asset for children or other beneficiaries.

2. Set Up an Asset Protection Trust

An Asset Protection Trust allows you to transfer your home and other assets into a trust during your lifetime, potentially shielding them from care assessments. These trusts can include:

• Your main residence
• Investment property
• Savings or other investments

The key is that you must not continue to control or benefit from the assets in a way that implies you still own them outright. Legal advice is crucial to ensure this strategy complies with the Care Act 2014 and avoids challenges from local authorities.

3. Understand the Deprivation of Assets Rule

The local authority has the power to investigate your finances and question any transfers that appear to be made to avoid paying for care. This is called the deprivation of assets rule. If they find you’ve deliberately tried to reduce your estate, they may still calculate your fees as if you still own those assets.

However, transfers made several years before care is needed—especially as part of a wider estate planning strategy—are more likely to stand up to scrutiny.

4. Exemptions That Can Help

Certain circumstances mean your home won’t be counted in a financial assessment:

• Your spouse or partner still lives in the home
• A close relative aged 60 or over (or under 16) lives in the home
• You’re only in care for a temporary stay

These rules can protect your property in the short term, but long-term solutions like trusts offer stronger protection for your full estate.

Myths About Avoiding Care Home Fees

Many people are misinformed about how care fee planning works. Let’s clear up a few common myths:

• “I’ll just give my home to my children.”
  This can be classed as deprivation of assets if care is needed within a few years. Plus, it exposes your home to your children’s financial risks (e.g., divorce or bankruptcy).
• “I won’t need care anyway.”
  Over 1 in 4 people will need residential care in their lifetime. Planning ahead is always better.
• “The council will always pay.”
  Only those with minimal assets qualify for full local authority funding. Even then, care options may be limited.

Best Time to Start Planning

The sooner you put protection in place, the better. Ideally, you should begin care fee planning when writing or updating your will, or at any major life event—such as retirement or downsizing.

Early planning ensures your intentions are clear and your trust structures have time to mature, reducing the likelihood of local authorities challenging your arrangements.

Need Personalised Help?

We specialise in care fee planning and trust-based estate strategies. Our team can review your assets and recommend the most effective ways to safeguard your wealth.

Book a free consultation with our legal experts today to get started.

Summary: How to Avoid Care Home Fees in the UK

If you’re concerned about losing your home or savings to care costs, the right planning can make all the difference. Strategies like Property Protection Trusts, Asset Protection Trusts, and other estate planning tools can help ensure your loved ones benefit from your legacy—not the local authority.

Just remember, timing and legal guidance are essential. To ensure you avoid mistakes or penalties, work with trusted professionals who understand the rules in depth.

For more information, visit our Care Fees Protection page, or book a consultation for expert advice tailored to your family’s needs.