Care Home Fees Planning.

Yes. If you believe a local authority financial assessment is wrong — for example because an asset has been wrongly counted, a disregard has not been applied, or you have been incorrectly treated as having deprived yourself of assets — you can ask for it to be reviewed and, if necessary, use the authority's complaints procedure. NHS Continuing Healthcare decisions can also be challenged: if an assessment concludes you are not eligible, you can request a review, with a formal appeal route through local resolution and then an independent review panel. These challenges can be detailed and evidence-heavy, and the sums at stake are often substantial. We can review a decision, advise on the prospects of a challenge, and represent you through the process.

This is one of the most common questions — and one where families are often misled. If you deliberately give away your home, transfer savings, or put assets into a trust in order to reduce or avoid care fees, the local authority can treat you as still owning them. This is called deprivation of assets, and the authority can assess you on this notional capital as though the gift never happened. Importantly, there is no fixed time limit — the seven-year rule people often mention applies to inheritance tax, not to care fees, so an older gift is not automatically safe. Transfers like this can also create other problems, including capital gains tax, loss of control of your home, and exposure if the person you transfer to divorces, dies, or runs into financial difficulty. Our trusts page explains what trusts can and cannot legitimately achieve, and our inheritance tax and estate planning page covers the tax side of lifetime gifts. Take proper advice before transferring any major asset.

No — while the broad principles are similar, the detailed rules differ, which matters if you or your relative is cared for in Wales rather than England. The clearest difference is the capital limit: in England (2025/26) you pay full care home fees once your capital is above £23,250, with a lower limit of £14,250; in Wales there is a single, more generous capital limit of £50,000 for residential care. Wales also caps the weekly charge for non-residential care, such as care received in your own home, at a set maximum (currently £100 a week), which England does not. Both countries operate property disregards, deferred payment agreements, and their own NHS Continuing Healthcare frameworks, but the assessment forms and procedures differ. Because the firm acts for clients across South Wales and the South West, we can advise on whichever set of rules applies to your situation.

Sensible planning is about understanding the rules and putting the right legal arrangements in place — not last-minute attempts to move assets, which are treated as deprivation of assets. Practical steps include making lasting powers of attorney so someone you trust can manage your finances and care decisions if you lose capacity, reviewing your will and any trusts so they work for legitimate purposes, and keeping clear records of significant financial decisions. For self-funders, an immediate needs annuity — a regulated insurance product that pays a guaranteed income towards care fees for life in exchange for a lump sum — can provide certainty, though this is financial advice that must come from a regulated adviser; we are solicitors, not financial advisers, and would refer you to a suitable specialist. We can advise on the legal aspects, including lasting powers of attorney, wills, and the proper use of trusts, and our inheritance tax and estate planning page covers the tax side of lifetime planning.

A top-up fee — sometimes called a third-party contribution — is an extra payment that covers the difference between what your local authority will pay for a care home place and the cost of a more expensive home. The authority must offer at least one home that meets your assessed needs within its budget; if you or your family prefer a particular home that costs more, a third party (usually a relative) can pay the top-up. As a general rule you cannot top up from your own assets while the authority is funding you, although there are limited exceptions — for example during the 12-week property disregard or under a deferred payment agreement. Top-up agreements should be entered into carefully, as the commitment continues for as long as the person is in that home and fees tend to rise over time.

A deferred payment agreement is an arrangement with your local authority that lets you delay paying your care home fees by using the value of your home, rather than having to sell it during your lifetime. In effect, the authority lends you the money to pay your fees and secures that loan against your property; the debt, plus interest and any administration charges, is repaid when the property is eventually sold — often after death. It allows you to keep your home, and potentially to rent it out to help meet the fees, while care is being paid for. Deferred payment agreements are available in England under the Care Act 2014 and in Wales under the Social Services and Well-being (Wales) Act 2014, subject to eligibility criteria. We can advise on whether one is suitable and review the terms before you commit.

NHS Continuing Healthcare (CHC) is a package of care arranged and funded entirely by the NHS for people whose need for care is primarily a health need rather than a social one. Unlike local authority care, it is not means-tested — if you are eligible, the NHS pays the full cost of your care, including care home fees, regardless of your capital or income. Eligibility is decided by first completing a Checklist screening and then, if that is passed, a full assessment using the Decision Support Tool carried out by a multidisciplinary team. CHC is often under-claimed, and decisions can be challenged through the NHS appeal process. If you are not eligible for full CHC but are in a nursing home, the NHS instead pays a flat-rate Funded Nursing Care contribution towards your nursing care. Both England and Wales run their own CHC frameworks. We can help you request an assessment or challenge a decision.

Whether you pay for your own care home fees depends on a financial assessment (means test) carried out by your local authority, which looks at both your capital and your income. If your capital is above the upper limit, you are a self-funder and pay the fees in full. The limits differ between England and Wales: in England (2025/26) the upper capital limit is £23,250 and the lower limit is £14,250; in Wales there is a single capital limit of £50,000 for care home (residential) care. Below the upper limit the local authority contributes, but you are still expected to pay towards the fees from your income, such as pensions, keeping only a small personal expenses allowance. Above the limit you fund the fees yourself until your capital falls to the threshold.

Not necessarily. Your home is often the largest asset in a care assessment, but there are important protections. When you move permanently into residential care, the value of your home is disregarded for the first 12 weeks, giving you time to make arrangements. It is disregarded indefinitely if certain people still live there — for example your spouse or partner, a relative aged 60 or over, or a dependent child. Even where the home does count, you do not have to sell it straight away: a deferred payment agreement lets you use its value to meet the fees through a loan from the local authority that is repaid when the property is eventually sold. Whether the home is counted at all depends on your circumstances, so it is worth taking advice before assuming it must be sold.