Can My Daughter Stay in Our Family Home if I Move Into Care?

Have you ever wondered what happens to your family home if you need to move into a care home — especially if your daughter still lives there? It’s a worry shared by many families across South Lanarkshire and beyond. Moving into care is already an emotional decision, and concerns about protecting your home and your loved ones only add to the weight of it all.

At Home Instead South Lanarkshire, we understand how important it is to safeguard both your family and your assets. In this blog, we explain how care home fees are assessed, what protections exist for family members living at home, and the practical steps you can take to protect your daughter’s future.

The way you legally own your home plays a significant part in how it is treated during a care needs assessment.

Most couples in the UK own their home as ‘joint tenants.’ In this arrangement, if one partner passes away, the property automatically belongs to the surviving partner. Should that partner then require care, the entire value of the home is counted when assessing how care will be funded.

However, if the home is owned as ‘tenants in common,’ each partner owns a distinct share (typically 50%). With the right legal arrangements, such as life interest trusts created through wills, each partner can leave their share of the home to their children. The surviving partner keeps the right to live in the property for the rest of their life. When care is eventually needed, only the portion of the property belonging to the person moving into care is considered in financial assessments.

This arrangement can safeguard at least part of the home for your children.

Some families wonder whether it is best to transfer the home directly to their children. While it may seem like a simple solution, it carries risks.

Even after transferring ownership, councils can still treat the property as part of your assets if they believe it was done to avoid care costs. Worse, you would lose control over your home — meaning it could be lost if your child divorces, falls into debt, or faces legal issues.

Professional advice is vital to avoid unintended consequences.

Understandably, many parents worry about what will happen if a child, especially a daughter or son, still lives at home when they move into a care home.

There are two main types of protection available:

Mandatory Disregards

If your daughter is:

• Aged 60 or older

• Disabled

• Under 18 and in full-time education

then your home must be excluded from the financial assessment. In these circumstances, your daughter can continue living at home, and the property is protected from being sold to fund your care.

Discretionary Disregards

Even if your daughter does not meet the mandatory criteria, councils have the power to apply a discretionary disregard.

If your daughter:

• Has lived in the home for a long time

• Has no other home

• Provided care for you

then the council may agree to disregard the property when assessing care fees.

Each case is reviewed individually. Evidence showing her residence and any care she provided will help support her case.

In some cases, families choose to rent out the property. The rental income can contribute towards care costs, while allowing a family member to stay in the home.

However, bear in mind:

• Rental income is counted in financial assessments

• Landlord responsibilities must be properly managed

It is a possibility, but professional advice is recommended.

Protecting your family home requires forward-thinking and early action. Here are some important steps:

• Set up life interest trusts within your will

• Consider changing property ownership to tenants in common

• Seek legal advice before transferring any assets

• Apply for NHS Continuing Healthcare Funding where possible

• Understand mandatory and discretionary disregard rules

• Explore deferred payment agreements if needed

Independent financial advisers who specialise in care funding can also help you structure your assets sensibly.

What happens to my home if my daughter lives there when I move into care?
If she meets the mandatory disregard rules (over 60, disabled, or under 18 in education), the home is excluded from the financial assessment.

Can I simply transfer my house to my daughter now?
No. Such transfers are often challenged under deprivation of assets rules.

Will the council force the sale of my house immediately?
Not necessarily. Deferred payment agreements, mandatory disregards, and discretionary disregards can help avoid this.

How does the 12-week disregard work?
When you first move into care, your home is not counted in assessments for the first 12 weeks. This gives you time to make decisions.

Is renting out the house a good option?
It can help with costs, but rental income is included in assessments, and landlord responsibilities must be carefully managed.