When a loved one requires long-term care, the emotional toll can be heavy — and the financial impact even more so. Many families are surprised to discover just how quickly care home fees can eat into personal savings, pensions, and even the family home. But with the right planning and knowledge, it's possible to reduce or avoid these costs legally.
This guide walks you through the practical steps families can take to protect assets while ensuring quality care.
Understanding the Basics of Care Home Fees
In the UK, care home costs can range anywhere from £700 to over £1,500 per week, depending on the level of support required. The system is means-tested, which means that a person’s assets — including their home — can be taken into account when determining how much they must pay.
If someone has assets above a certain threshold (currently £23,250 in England), they’re expected to fund their own care.
That’s where early planning becomes essential.
Start With a Financial Assessment
Before making any decisions, it’s wise to request a care needs and financial assessment from your local authority. This will determine whether your loved one qualifies for any help with care fees.
Even if the assessment finds them above the financial threshold, it can still provide clarity and open up discussions about care options, including where and how care is delivered.
Legal Ways to Avoid Paying Care Home Fees
There are a few legitimate and legal strategies families can explore. Each requires careful planning — ideally with professional advice — and must comply with UK law to avoid issues such as deprivation of assets (where someone gives away money or property to avoid paying for care).
1. Set Up a Property Protection Trust
One commonly used method is placing a share of the family home into a Property Protection Trust. This is usually done through a will between spouses or civil partners. When one partner passes away, their share of the home goes into the trust, protecting it from being used to pay for the surviving partner’s care.
It’s important to do this well in advance of care being needed, as last-minute transfers can be challenged by the local authority.
2. Consider Gifting Assets Early
Gifting money or property to children or relatives is a route some families explore. However, timing is crucial. If the local authority believes a gift was made to avoid care costs, they may still assess the value as part of the person’s assets.
To avoid this, gifts must be made with no intention of avoiding care fees — and ideally several years in advance. There's no fixed time limit, but the longer the gap between the gift and the care need, the more likely it is to be accepted.
3. Use a Life Interest Trust in Your Will
A Life Interest Trust allows one partner to leave their share of an asset (often the home) to a trust, with the surviving partner allowed to live in or benefit from the asset during their lifetime. After their death, the asset passes to beneficiaries, such as children.
This prevents the surviving partner’s estate from increasing in value — which can help them stay below the care fee threshold.
4. Explore NHS Continuing Healthcare
In some cases, if a person’s need for care is primarily health-related, they may qualify for NHS Continuing Healthcare, which covers the full cost of care, including accommodation.
This is not means-tested and doesn’t depend on income or savings. However, the assessment process is strict, and many applications are initially declined. If you believe your relative’s needs are primarily medical, it’s worth requesting an assessment — and appealing if refused.
For more information, visit the NHS Continuing Healthcare overview.
Why Early Planning Matters
The best time to think about care home fees isn’t when a crisis happens — it’s well before care is needed. Having conversations with family, arranging wills, and exploring trusts can make all the difference in safeguarding what’s taken a lifetime to build.
A sudden illness or accident can leave families scrambling, often forced to make financial decisions under stress. Planning ahead gives you options, clarity, and peace of mind.
How Oakland Care Supports Families Through the Process
At Oakland Care, we understand that financial planning around care can be overwhelming. That’s why our team is committed to helping families navigate every step of the journey — from understanding funding options to accessing independent financial advice.
Our care teams are trained not only to deliver exceptional residential, dementia, and respite care but also to provide guidance on the practical and emotional decisions that come with it. We take pride in offering transparent pricing and support for families exploring funding solutions.
You can learn more about how Oakland Care supports families on our website.
Avoid Common Misconceptions
It’s worth noting a few key points that often cause confusion:
Giving away your house won’t automatically protect it. The local authority can still consider the house part of your assets if the gift was made to avoid fees.
Jointly owned property can still be assessed. If one partner goes into care, their share of the home may still be evaluated.
Putting assets into a trust isn’t always straightforward. Professional legal advice is essential to ensure the structure is effective and compliant.
In Summary
Avoiding care home fees is possible — but only through forward-thinking, legal strategies tailored to your circumstances. No one wants to see a lifetime of savings or the family home lost to care costs. With early action and the right support, families can plan with confidence.
Oakland Care is here to guide and support families not only through the emotional aspects of care but also the practical, financial realities. We believe every person deserves quality care — and every family deserves clarity on how to achieve it.
