The Core Protection: A Spouse's Right to Remain
The most important piece of information for anyone asking, "Can I lose my home if my husband goes into a nursing home in the UK?" is that the law provides significant protection. When a local authority conducts a financial assessment to determine how much a person must contribute to their care home fees, they must disregard the value of the property if it is occupied by their spouse or civil partner. This rule is a fundamental safeguard designed to ensure that the resident spouse is not forced to sell their home to fund their partner's care.
Who is Protected?
This protection extends beyond married couples and civil partners. The property value will also be ignored if it is the sole residence of:
- An unmarried partner who has been living with the person requiring care.
- A relative who is 60 or over.
- A relative who is incapacitated.
- A child of the person under 18.
The Local Authority Financial Assessment
When a person requires long-term residential care, the local council performs a financial assessment (or means test) to determine if they are eligible for funding assistance. The assessment looks at the person's income and capital, such as savings and property. It is crucial to understand that only the assets of the person needing care are assessed; the income or capital of their partner is not considered, though jointly held assets are treated separately.
Understanding Jointly Owned Property
Your home's ownership structure can have a significant impact on your financial planning, particularly if you are considering protecting your assets for future generations. For couples, property is typically owned in one of two ways:
- Joint Tenants: This is the most common arrangement for married couples. It means you both own the entire property together, and neither person has a distinct "share." When one owner dies, their interest in the property automatically passes to the surviving owner, regardless of any will. If the surviving partner later needs care, the entire property's value could be assessed, though the value of the home would still be disregarded if occupied by a protected person.
- Tenants in Common: This arrangement means you each own a distinct share of the property, typically 50/50. Each person can leave their share to a beneficiary in their will. By severing the joint tenancy and becoming tenants in common, a partner can place their share of the property into a trust via their will. This is known as a life interest trust. If the surviving partner then requires care, only their half of the property would be considered in the financial assessment, potentially protecting the other half for inheritance.
Comparison of Ownership Structures for Care Fees
| Feature | Joint Tenants | Tenants in Common |
|---|---|---|
| Ownership | Owners together own the entire property. | Each owner has a distinct, separate share. |
| Inheritance | Share passes automatically to surviving joint owner. | Share can be passed via a will to a beneficiary. |
| Care Fee Assessment | Disregarded while spouse lives there. If survivor needs care, full value may be assessed (if no other disregard). | Disregarded while spouse lives there. After death of one partner, the deceased's share (if in a trust) is not assessed for the survivor's fees. |
| Trusts | Not applicable as an inheritance planning tool for care fees. | Can be used to create a life interest trust to protect one partner's share. |
Deliberate Deprivation of Assets: A Critical Warning
Attempting to give away or transfer assets, such as your home, to avoid paying care fees is considered "deliberate deprivation of assets" by the local authority. If the council can prove that the primary purpose of the transfer was to avoid care costs, they can treat the asset as if you still own it. This can lead to a charge being placed against the property to recover the costs, and there is no time limit for the council to investigate such transfers. It is a complex area, and seeking expert legal advice is essential before making any major financial decisions related to your assets.
The Deferred Payment Agreement (DPA)
If the home is no longer disregarded (for example, if the surviving spouse moves into care or dies), the local council may offer a Deferred Payment Agreement. A DPA is a loan from the council to pay for the care fees, with the loan secured against the value of your property. It allows you to delay selling the house, with the loan plus accrued interest being repaid from the sale of the property after the resident's death. Eligibility for a DPA is subject to certain criteria, and it is vital to get independent financial advice before committing.
Beyond Local Authority Funding: NHS Continuing Healthcare
It is important to remember that not all care is funded by the local authority. If your husband's primary need is for healthcare rather than social care, he may be eligible for NHS Continuing Healthcare (CHC) funding. This is a package of care provided and funded entirely by the NHS. A full assessment must be carried out by the NHS Integrated Care Board to determine eligibility. If successful, all care costs are covered, and your home and other assets will not be considered.
Protecting Your Assets and Planning for the Future
Navigating the complexities of care home funding and property rights can be daunting. The key is to plan proactively and seek expert advice. Reviewing your property ownership and considering a 'tenants in common' structure with a life interest trust in your will is one potential strategy. However, this must be done for valid reasons and with the correct legal wording. Crucially, do not attempt to give away your property with the intention of avoiding care fees, as this will likely be challenged as deliberate deprivation. Consulting with a specialist solicitor or financial advisor is the most reliable way to ensure your assets are protected and your loved ones are provided for.
For more information on paying for residential care and understanding the rules, you can visit the Age UK website.
