One of the most common worries we hear from clients is this:
“Will the council take our house to pay for care?”
The rules around care fees are often misunderstood, and there is a lot of alarming information circulating online. The reality is more nuanced.
Here is a simple overview of how the system currently works.
The Financial Assessment
If someone needs long-term residential care, the local authority will carry out a financial assessment under the rules set out in the Care Act.
This assessment looks at the person’s income and capital to decide whether they must pay for their care themselves.
At present:
- If you have more than £23,250 in capital, you are usually expected to pay your own care fees (often called “self-funding”).
- If you have less than £14,250, the local authority will normally fund your care, although most of your income will still go towards the cost.
- Between those figures, there is a sliding scale of contributions.
These thresholds apply to the individual receiving care, not to their family members.
What About The Family Home?
The value of someone’s home is not always included in the assessment.
In particular, the home is disregarded if it is still occupied by:
- a spouse or civil partner
- a partner they live with
- a close relative over 60
- a disabled relative
- in some circumstances, a dependent child.
In those cases, the property will not be taken into account while that person remains living there.
The Protected Personal Allowance
Even when someone is paying towards their care, they are not required to hand over every penny of income.
Residents must be left with a personal expenses allowance — currently just over £30 per week — so they can still pay for small personal items such as toiletries, clothing or outings.
Planning Ahead: Where Wills Come In
For married couples and long-term partners, there is a simple piece of planning that can make a significant difference.
Many couples make mirror wills leaving everything outright to each other.
That approach can unintentionally expose the entire family estate to care fee assessments if the surviving partner later requires residential care.
A more protective structure is often to leave assets to the survivor for life, rather than outright.
This can be done through:
- a life interest trust in the will
- a right of occupation in the family home
- with the remaining assets held for the children after the survivor’s death.
This type of arrangement can ensure the surviving partner is fully provided for while also protecting part of the estate for the next generation.
Every family situation is different, so careful advice is essential.
Getting The Right Advice
Care fee planning is an area where myths and misunderstandings are common. Good planning does not involve hiding assets or doing anything improper — it simply involves structuring wills sensibly and understanding how the rules work.
At Johnson & Boon, we regularly advise families about wills, estate planning and the potential impact of future care costs.
If you would like to review your will or discuss how to protect your family’s position, we would be very happy to help.
Please contact our Private Client team to arrange a consultation.
