Can the Council Take my House to Pay for Care Fees?

One of the most common concerns we hear from families across Macclesfield and Cheshire is this;

“Can the council take my house to pay for care?”

For many people, their home is their largest asset and something they hope to pass on to their children. The idea that it could be used to fund care fees can feel worrying and, in some cases, unfair.

However, the situation is often misunderstood. The answer is not a simple yes or no. It depends entirely on circumstances, ownership structure, and timing.

How Care Fees Are Assessed in England

If someone moves permanently into residential care, the local authority carries out a financial assessment, often called a means test. In England, if your capital exceeds the upper threshold (currently £23,250), you are generally expected to fund your own care. Care fee assessments are governed by the Care Act 2014 and associated statutory guidance.

Capital can include: Savings, Investments and Property (in certain situations)

However, your home won’t automatically be taken from you, which is what families are worried about.

The key question is whether it is included in the assessment. Or how much.

When Can the Council Include Your Home in Care Fee Assessments?

Your property may be included in the financial assessment if you move permanently into residential care, and no qualifying relative continues to live there.

A qualifying relative typically includes:

• A spouse or civil partner

• A partner

• A dependent child

• A relative aged 60 or over

• A disabled relative

If one of these individuals remains living in the property, the local authority will usually disregard it from the assessment anyway.

This is an important point that is often overlooked.

Does the Council Actually Take Your House?

The council does not simply seize ownership of your home.

If your property is included in the assessment and you do not have enough liquid savings to pay for care, the local authority may offer a Deferred Payment Agreement.

This means the council effectively loans the care fees, using your property as security. That way the property does not have to be sold immediately and could even be rented out.

The debt is repaid later, usually when the property is sold.

While this can still result in the home being sold eventually, it is not the same as the council taking ownership outright or forcing a sale.

So What Can You Do?

While no strategy can guarantee that care fees will never be payable, sensible estate planning can improve your position in many cases.

For married couples and civil partners in particular, planning often begins with reviewing how the family home is owned.

Changing to Tenants in Common

Many couples own their property as joint tenants. When the first spouse dies, the entire property automatically passes to the survivor.

This means that 100% of the home remains in the survivor’s estate and potentially exposed to future care assessments.

By changing ownership to tenants in common, each spouse owns a defined share, typically 50%. This does not transfer ownership to anyone else. It simply changes how the property passes on death.

Including a Life Interest Trust in the Will

Once ownership is structured correctly, a carefully drafted Will can direct the first spouse’s share of the property into a life interest trust.

This allows the surviving spouse to continue living in the home for life. At the same time, the first spouse’s share is preserved for chosen beneficiaries, often children.

While this does not remove care fee liability entirely, it can mean that only the survivor’s share is exposed in certain circumstances.

This approach is long-established, mainstream Will planning. It is not about hiding assets. It is about structuring ownership sensibly and careful planning through a Will.

Frequently Asked Questions

Is there a 7-year rule for care fees?

No. Unlike inheritance tax, there is no fixed 7-year rule for care fee assessments. Local authorities look at intention and timing when considering deprivation of assets.

Can I give my house to my children to avoid care fees?

Gifting your home can be challenged if the local authority believes the intention was to reduce care costs. Gifting away your home can also pose serious risks and tax implications. So, we would always advise against giving away your home.

Final Thoughts

So, can the council take your house to pay for care fees?

Your home is not automatically taken. It may be included in a financial assessment depending on your circumstances and attempts to give it away purely to avoid fees can be challenged.

However, thoughtful and properly structured estate planning can often protect part of the family home and sometimes other assets after the first death in a married couple.

If you are concerned about how care costs might affect your property, the best first step is not a transfer of ownership, it is to get good impartial advice.

At Moneybox Wills & Trusts, we help families across Macclesfield and Cheshire review their situation realistically. If you would like to understand what options may be available in your circumstances, we offer a free consultation to discuss your position in confidence.