Can My Daughter Continue to Live in My House if I Go Into Care?
Learn when your daughter can stay in your home if you move into care, and how to protect it legally.
What Happens to Your Home When You Move into Care?
Have you ever wondered what would happen to your home if you needed to move into a care facility? It’s a question that concerns many families, especially when a loved one still lives in the property. If you own your home and are facing the possibility of long-term care, you may be worried about whether your daughter or another family member can continue living there. The good news is that in some cases, your property may be protected, meaning it won’t have to be sold to cover care costs.
At Home Instead Hamilton, we understand how important it is for families to stay informed about their options. In this article, we’ll explain how property ownership affects care costs, the rules around financial assessments, and what you can do to protect your home and your loved ones.
How Property Ownership Affects Care Home Fees
With care home costs often exceeding £52,000 per year, many people worry about how they will afford long-term care. If you own your home, it may be included in a financial assessment carried out by the local authority to determine how much you need to contribute towards your care. However, there are circumstances where your home may be excluded, ensuring your loved ones can continue living there.
When Is Your Home Exempt from Care Home Fees?
The local authority must disregard your home from a financial assessment if one of the following individuals still lives there:
- Your spouse or civil partner
- A relative aged 60 or over
- A child under 18
- A disabled relative
If any of these apply, your home will not be counted as an asset, meaning it cannot be used to pay for care fees. This ensures that vulnerable family members can remain in the property without the risk of losing their home.
What If My Daughter Is Under 60 and Lives in the Home?
If your daughter is under 60 years old, she may not automatically qualify for a mandatory disregard of the property. However, local authorities can apply a discretionary disregard in situations where the person has been providing care or has lived in the property for a significant period.
If your daughter has been living in your home and caring for you, it is possible to request this exemption. While it is not guaranteed, it is worth discussing with the local authority as they have the ability to exclude the home from their assessment on a case-by-case basis.
Protecting Your Home from Care Fees
If your home does not qualify for an exemption, you may be required to use it to cover your care costs. However, there are legal ways to protect your property and ensure your family can continue living there.
1. Life Interest Trust Wills
A life interest trust allows you to leave your share of the home to a beneficiary (such as your daughter) while granting someone else the right to live there for their lifetime. This means that even if one partner requires care, their share of the home is protected and will eventually pass to the intended beneficiary.
2. Owning Property as Tenants in Common
If you and your spouse own your home as tenants in common, each of you owns a distinct share of the property. This structure allows you to place your share in a trust, ensuring that at least half of the property is protected from care fees.
3. Deed of Variation
If a family member has recently passed away and left their share of a property to you, a deed of variation can be used to redirect the inheritance into a trust. This method helps prevent the entire value of the property from being used for care costs.
4. Deferred Payment Agreements (DPA)
A deferred payment agreement allows you to delay selling your home to pay for care. Instead, the local authority covers the costs as a loan, which is repaid when the property is eventually sold.
Can I Transfer My Home to My Daughter?
Some people consider transferring their home to their children to avoid it being included in care fee assessments. While this may seem like a straightforward solution, there are significant risks involved:
- Loss of Control – If you transfer ownership, your daughter becomes the legal owner. This means she could sell the property, use it as security for a loan, or lose it in a divorce settlement.
- Capital Gains Tax (CGT) – If your daughter does not live in the property and later sells it, she may be liable for CGT.
- Deprivation of Assets – If the local authority believes the transfer was made to avoid care fees, they may still count the property as part of your financial assessment.
It is always best to seek professional advice before making any changes to property ownership to avoid unexpected financial and legal consequences.
What Happens If My Home Is Included in the Financial Assessment?
If your home is counted as an asset, you may need to sell it to cover care fees. However, there are options available to help you manage this process:
- Equity release schemes – Allow you to access funds while continuing to live in your home.
- Renting out the property – Can provide an income to help cover care costs.
- Selling and downsizing – Allows you to preserve part of the proceeds while still securing suitable accommodation.
Seeking Expert Advice
Planning for long-term care is a complex process, and understanding the financial implications can be challenging. Making the right choices now can help you protect your assets and ensure your loved ones remain secure in their home.
At Home Instead Hamilton, we are committed to helping families navigate the difficult decisions surrounding home care and residential care. If you need guidance on staying in your home or understanding your financial options, our friendly and experienced team is here to help.
Frequently Asked Questions
Can my daughter stay in my home if I go into care? If your daughter is over 60 or disabled, the property will be exempt from financial assessment. If she is under 60, you can request a discretionary disregard, though approval is not guaranteed.
Will I be forced to sell my home? If your home is included in the financial assessment and no exemption applies, you may need to sell it. However, options such as deferred payment agreements and equity release can help.
Can I put my home in my daughter’s name to avoid care fees? This carries risks, including loss of control, tax liabilities, and deprivation of assets rules. Seeking legal advice is crucial before taking any action.
How can I protect my home from care costs? Strategies such as life interest trusts, tenants in common ownership, and deferred payment agreements can help safeguard your property.
If you are concerned about your home and future care needs, contact Home Instead Hamilton today. Our team is here to support you with compassionate, expert advice tailored to your circumstances.
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