Care Fees and Deliberate Deprivation

The Truth About Protecting Your Home

Few topics create as much confusion as care fees.

Many people have heard phrases such as “protect your home from care” or “put your house into trust”. Unfortunately, the reality under the law in England and Wales is far more nuanced.

It is important to understand the facts.

How Care Fees Are Assessed

If someone requires residential care, the local authority will carry out a financial assessment.

They will look at:

• Savings and investments

• Property ownership

• Income

• Certain gifts made in the past

If assets exceed the current threshold, the individual may be required to fund their own care.

This often leads to a common question.

“Can I give my house away to avoid paying for care?”

The answer requires careful explanation.

What Is Deliberate Deprivation of Assets?

Deliberate deprivation occurs when someone intentionally reduces their assets in order to avoid paying for care.

This can include:

• Gifting property to children

• Transferring savings

• Selling assets for less than market value

• Placing assets into certain types of trust primarily to avoid care fees

If a local authority believes a transfer was made to avoid care costs, they can:

• Treat the person as still owning the asset for assessment purposes

• Refuse funding

• In some cases, pursue the recipient of the gift

There is no fixed time limit. It is not simply a case of surviving seven years. That rule relates to inheritance tax, not care fee assessments.

Local authorities look at intention and timing. If, at the time of the transfer, care was foreseeable, it may be challenged.

The Problem With “Quick Fix” Schemes

You may have seen marketing promoting asset protection trusts as a guaranteed way to avoid care fees.

No responsible adviser should promise that.

Each situation depends on:

• Age and health at the time of planning

• Whether care needs were foreseeable

• The wider financial picture

• The purpose of the planning

Estate planning should never be driven solely by a desire to avoid care fees. That can create risk, family conflict and potential legal challenge.

What Can You Do Instead?

Good planning focuses on:

• Making a properly drafted Will

• Considering appropriate trust planning where suitable

• Putting Lasting Powers of Attorney in place

• Taking advice early, not in a crisis

• Understanding your overall financial position

There are legitimate and sensible planning strategies, but they must be based on your full circumstances, not fear.

Clarity Over Myths

The care system is complex. Simplistic advice is rarely accurate.

At SLS Wills and More, advice is tailored, transparent and compliant with the law in England and Wales. The aim is to provide clarity, not false reassurance.

If you are concerned about care fees or would like to understand your options properly, we would be happy to talk through your situation.