Protecting your home from care fees: facts and myths

By · Published 2026-06-30 · Last reviewed 2026-09-18

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There is no guaranteed way to shield a home from care fees, and giving it away or putting it in a trust to avoid them can be treated as deprivation of assets, with no time limit. Legitimate protections do exist: the home is ignored for care at home, for the first 12 weeks in a care home, and while a partner or qualifying relative lives there.

There is no reliable trick that protects a home from care fees, and some of the most heavily marketed ones can make things worse. In England, giving a home away or putting it into a trust to avoid care charges can be treated as deprivation of assets, and there is no time limit on this rule. The good news is that the law already protects the home in several common situations, and many families never have to sell.

This article explains the genuine protections and the myths, mainly for England. Scotland, Wales and Northern Ireland have different rules, noted at the end.

When does the home not count at all?

The council only looks at the value of a home when someone moves permanently into a care home. According to the Care and Support Statutory Guidance, the home must be disregarded when:

Councils can also choose to disregard the home in other situations, for example when a carer has given up their own home to live there.

The 12-week property disregard

When someone first moves permanently into a care home, the home's value is ignored for the first 12 weeks. This gives families time to decide whether to sell, rent it out or set up a deferred payment agreement.

What are the legitimate options if the home does count?

Deferred payment agreement. In England, councils must offer these to people who qualify. The council pays the fees, or lends the money, and recovers the debt, with interest and charges, when the home is sold, which can be after death. The guidance says the scheme is designed so people are not forced to sell their home in their lifetime.

Renting the home out. Rental income can help pay the fees. It is taxable and counts as income in the financial assessment, so take advice before letting.

Checking for NHS funding. If needs are mainly health needs, NHS continuing healthcare pays the full cost of care and is not means-tested. Ask for an assessment before assuming the home must be used.

Planning with wills. Couples sometimes change how they own their home, or write wills that leave a share in trust rather than to each other. Done properly and for genuine reasons, this can affect what happens if the surviving partner later needs care. It needs advice from a solicitor.

Myth 1: "If I give my house to my children, the council can't touch it"

This is the most risky myth. If avoiding care charges was a significant reason for the gift, the council can treat the person as still owning the home. The statutory guidance lists transferring the title deeds of a property to someone else as a common form of deprivation. The council can also pursue the person who received the asset in some circumstances.

There are other downsides:

Myth 2: "An asset protection trust will shield the home"

Some firms sell trusts as a way to protect a home from care fees. The guidance lists assets put into a trust that cannot be revoked as another common form of deprivation. Setting up a trust does not stop a council from asking why it was done and when.

Trusts do have genuine uses, such as protecting a vulnerable beneficiary or managing money for grandchildren. If a trust is suggested mainly to avoid care fees, be very cautious and get independent advice from a solicitor who does not sell the product.

Myth 3: "There's a seven-year rule for care fees"

There is not. The seven-year rule belongs to Inheritance Tax. For care fees, the council looks at whether avoiding charges was a significant motivation at the time, and whether the person could reasonably have expected to need care. A gift made while fit and well, with no foreseeable care need, is much less likely to be treated as deprivation than one made shortly before a move into care.

Myth 4: "The council will force us to sell straight away"

No. The 12-week disregard and deferred payment agreements exist precisely so people are not forced into a quick sale. The NHS guide to self-funding also confirms that you will not have to sell your home to pay for care in your own home.

Myth 5: "The cap on care costs will protect us"

A lifetime cap on care costs was planned for England, but in July 2024 the government announced it would not be taken forward in October 2025. For 2026/27, the upper capital limit remains £23,250 and the lower limit £14,250.

How do the rules differ in Scotland, Wales and Northern Ireland?

In every nation, deliberately giving away assets to avoid care charges can be challenged.

This is general information. Decisions about gifting a home, trusts or changing ownership have lasting legal and tax consequences. Take advice from a solicitor experienced in later-life planning, and be wary of anyone selling a scheme that promises to "protect" your home.

Frequently asked questions

Can the council take my house?

The council cannot take a home. For a permanent care home placement, it can count the home's value in the financial assessment, but a deferred payment agreement usually means it does not need to be sold during the person's lifetime.

Is it deprivation if I gave my house away years ago?

It depends on the reasons and timing, not a fixed number of years. If the person was well and had no reason to expect care at the time, the council is less likely to decide the gift was made to avoid charges.

Does a partner living in the home protect it?

Yes. If a spouse or partner continues to live in the home, its value is disregarded while they live there, as long as they are not estranged.

Can I spend my savings on home improvements before care?

Normal spending on things you need is not deprivation. Sudden, unusual spending that turns cash into something the means test ignores, shortly before care is needed, may be questioned.

Should I put my house in joint names with my children?

Adding children to the title to reduce care charges can be treated as deprivation and brings the same risks as a full gift. Take legal advice first.

Key takeaways