Protecting an Inheritance From Care Fees in Nottingham

By · Published 2025-11-13 · Last reviewed 2026-09-18

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Nottingham families can protect some of an inheritance lawfully by using the property disregards, a council deferred payment agreement instead of a quick sale, NHS Continuing Healthcare where needs are mainly health needs, and will planning for couples. Giving away the home or savings to avoid fees usually fails, because the council can treat it as deprivation of assets and charge as if the money were still there.

Families in Nottingham can reduce the impact of care fees on an inheritance, but only through lawful routes: using the rules on property disregards, spreading costs with a deferred payment agreement rather than selling quickly, checking NHS funding, and planning wills sensibly. Giving assets away to avoid fees rarely works and can cause serious problems.

This guide explains the options under the rules in England, and how Nottingham City Council and Nottinghamshire County Council apply them.

Who assesses care costs in Nottingham?

It depends on the address:

Both use the national means test. In 2026/27 the upper capital limit in England is £23,250 and the lower limit is £14,250. Above the upper limit, people usually pay the full cost of their care. Nottingham City Council notes that if someone chooses not to have a financial assessment, it will assume they can pay all the costs themselves.

How can you avoid selling the home straight away?

The 12-week property disregard

When someone moves permanently into a care home, the council must ignore the value of their home for the first 12 weeks. This gives the family time to decide what to do without rushing into a sale. The rule is set out in the Care and support statutory guidance.

When the home is not counted at all

The home's value is ignored for as long as it is lived in by:

Councils also have discretion to ignore the home in some other cases, such as where a carer who gave up their own home lives there.

Deferred payment agreements

A deferred payment agreement lets the council pay part of the care home fees, secured by a legal charge on the home. The debt, with interest and fees, is repaid when the home is sold or from the estate. Councils in England must offer one to people who meet the eligibility criteria. Both Nottingham City and Nottinghamshire County councils run schemes.

A deferred payment agreement does not protect the value of the home, but it means the family is not forced to sell during your relative's lifetime and can choose when to sell.

Can you give the house or savings to your children?

People are free to spend and give away their money. But if the council decides that someone gave away assets deliberately to avoid care charges, it can treat them as still owning those assets. This is called deprivation of assets.

The statutory guidance says councils should consider:

Examples the guidance gives include transferring the title deeds of a property to someone else and putting assets into a trust that cannot be revoked. If deprivation is found, the council can charge as if the asset still belonged to your relative, and in some cases can pursue the person who received it.

There is no fixed time limit. The seven-year rule people often mention is an Inheritance Tax rule: gifts may be taxed if the giver dies within 7 years, as explained on GOV.UK's Inheritance Tax pages. It does not apply to care fees.

Giving away the house can also cause other problems: the recipient's divorce, debts or death can put the home at risk, and it may have tax consequences for both sides.

What lawful planning can help?

What should you avoid?

Where can Nottingham families get advice?

Start with the council's adult social care team for a needs assessment and financial assessment. For planning, speak to a solicitor experienced in later-life planning and a regulated financial adviser who specialises in care fees. Free, independent guidance is also available from Age UK, Citizens Advice and MoneyHelper.

This article is general information, not legal or financial advice.

Frequently asked questions

Will the council make us sell Mum's house?

Not straight away. The home is ignored for the first 12 weeks of permanent care, and a deferred payment agreement can then pay fees without a sale during your mum's lifetime. The debt is repaid later from the home's value.

Is it safe to give money away seven years before needing care?

The seven-year rule applies to Inheritance Tax, not care fees. For care fees, the council looks at why and when the gift was made, including whether care needs were foreseeable. There is no fixed safe period.

Does it matter whether we live in Nottingham city or the county?

Yes, for who you contact. Nottingham City Council covers the city and Nottinghamshire County Council covers the county. Both follow the same national rules in England but run their own processes and deferred payment schemes.

If Dad goes into care, will Mum have to sell the house?

No. If your mum still lives in the home, its value is ignored in your dad's financial assessment. It could be counted later if circumstances change.

Does a will trust help if we are both still alive?

It only takes effect when the first partner dies. It can then protect that partner's share from the survivor's care costs. It does not reduce what either partner pays for care while both are alive.

Key takeaways