Can I Keep My House if I Go into a Care Home?

When facing the prospect of moving into a care home, a common and pressing question arises: “Can I keep my house if I go into a care home?” This concern is understandable, as the cost of care can be substantial, often leading people to fear that they will lose their homes. Navigating this complex issue involves understanding how care home fees are assessed, what protections can be put in place, and the legal implications for your property.

Understanding Care Home Fees and Your Home

The first step in addressing the question “Can I keep my house if I go into a care home?” is to understand how local authorities assess care home fees. When you move into a care home, the council will conduct a means test to determine your ability to pay for care. This assessment includes examining your income, savings, and assets, including your home.

While the council cannot forcibly evict any other legal tenants from your home, they can take a lien against the property. This means that they secure the amount owed for your care against your home, to be recouped when the property is sold. Initially, the council will take liquid assets such as savings to cover care costs. Once these funds are depleted, they will look to the value of your home.

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Legal Protections for Your Home

To avoid losing your home, it is crucial to put protections in place well before requiring care. Estate planning tools can be effective but must be done with careful planning and well in advance of needing care.

If you are part of a couple, the situation becomes more complicated. Even if only one person requires care, the entire home is at risk unless specific measures are taken. One of the most effective strategies is to “sever the tenancy” if you own the property as joint tenants. By changing the ownership to tenants in common, each person owns a distinct share of the property. This allows you to protect 50% of the home’s value from care home fees. However, it is essential to also protect that half, so if the other partner requires care in the future, it cannot be taken.

Steps to Protect Your Home

Seek Legal Advice: Consult with a solicitor who specializes in elder law and estate planning. The Later Living Helpline collaborates with several estate planners who will provide free advice regarding this. Contact the Later Living Helpline.
Sever the Tenancy: If you are a couple, change your property ownership from joint tenants to tenants in common. This ensures that each of you owns a distinct share of the property.
Financial Planning: Engage in proactive financial planning to manage your assets effectively. There are various estate planning tools that can be put in place to protect your home and assets.

Additional Considerations

It is important to note that any actions taken to protect your home should be done transparently and with professional guidance. Deliberate deprivation of assets, where someone intentionally reduces their assets to avoid care costs, can be challenged by the council and may not be effective.

In conclusion, the answer to “Can I keep my house if I go into a care home?” is nuanced and depends on early and strategic planning. By understanding the legal framework, seeking expert advice, and taking proactive steps, you can better protect your home from being consumed by care home fees. Remember, the key is to act well before care is needed to ensure your home and assets are safeguarded for your future and that of your loved ones.