Care home planning: How it can help

How severing a joint tenancy can help protect your house from care home fees

1. Protecting the other owner’s share

When a person moves into a care home, local authorities assess their assets to determine if they are responsible for their own care home funding.

If they jointly own a property the value of their share could be used to fund care costs.

Restructuring ownership or transferring shares may protect the other co-owner’s interest.

2. Preventing the forced sale of the property

If a joint tenancy is severed, and a property is owned as tenants in common, it is much harder for a care home to force the sale of the property.

By changing how the property is owned the remaining owner (such as a spouse or family member) may be able to continue living in the home.

3. Potential exemptions from means testing

In some cases, property held in specific ways (such as being transferred into a trust) may be exempt from care home fee assessments.

However, this must be done carefully to avoid being classified as deliberate deprivation of assets, where authorities may still consider the asset for funding.

4. Estate planning and inheritance benefits

Severing a joint tenancy and restructuring ownership may allow you to protect assets for beneficiaries.

With good planning person’s share of the property can be protected and passed on to loved ones, and not used for care costs.

Key considerations before making changes

• Legal advice is essential: Severing a tenancy involves legal processes, such as changing ownership at the Land Registry.
  
• Timing matters: Changes made too close to the time of care home assessment could be scrutinised for deliberate asset deprivation.
  
• Impact on family and beneficiaries: Consider how changes affect inheritance and property rights.
  

Final thoughts

You or a loved one may require care in the future, and reviewing property ownership can help protect assets while ensuring proper care funding.

Consulting a legal or financial expert is crucial to ensure compliance with regulations while maximising financial benefits.

Would you like guidance on your specific situation? Signature Concierge can put you in contact with a legal expert today