Will My Home Be Sold to Pay for Care? What You Need to Know

One of the most common concerns for people planning for later life, whether for themselves or on behalf of an elderly parent, is the fear of losing the family home to care fees. It is a worry that comes up in our conversations with clients, and it is completely understandable. Family homes carry far more than financial value.

The good news is that with the right legal advice and some careful planning, there is often more that can be done than people realise. Understanding the rules clearly is the first step, and getting advice early really does make a difference.

In this article, we explain how care funding works in England, when your home is and is not included in the financial assessment, and what legitimate planning looks like. Please note, that the rules outlined here reflect the current position as of September 2026 and individual circumstances vary, so we would always recommend seeking professional advice tailored to your situation.

How care fees are funded in England

There are two main types of funded care in England: NHS-funded care and local authority-funded care. Understanding which applies to your situation is an important first step.

NHS-Funded Care

NHS-funded care covers situations where your care needs are primarily medical rather than social. Eligibility is based entirely on clinical need, not on your financial position.

There are two main forms of NHS-funded care:

NHS Continuing Healthcare (CHC)

NHS Continuing Healthcare is a package of care arranged and funded entirely by the NHS for people who have complex, ongoing health needs.

Health professionals will assess your day-to-day needs across four key areas:

The nature of your needs, meaning how severe they are.

The intensity, meaning how much care is required and how often.

The complexity, meaning how difficult they are to manage.

The unpredictability, meaning the risk they present if not properly managed.

If you qualify for CHC, your care is fully funded by the NHS. This includes your accommodation, meals and personal care costs, regardless of your financial circumstances.

NHS-Funded Nursing Care (FNC)

If you do not qualify for full Continuing Healthcare but are assessed as needing to live in a nursing home due to regular nursing care requirements, you may still be entitled to NHS-Funded Nursing Care.

This is a contribution paid directly by the NHS to your nursing home at a flat rate of £267.68 per week as of September 2026. It does not cover the full cost of care, but it reduces the amount you or the local authority will need to contribute. You must be assessed for CHC before FNC can be considered.

Local Authority-Funded Care

For those who do not qualify for NHS-funded care, local authority funding may be available, subject to both care needs assessment and a financial assessment. This process is governed by the Care Act 2014.

The first step is a Care Needs Assessment, which is carried out before any financial information is considered. Its purpose is simply to establish whether you have eligible care needs under the Care Act. If you do, the local authority will calculate a personal budget, which is the amount considered necessary to meet your care needs.

Once eligible care needs have been established, the local authority will carry out a Financial Assessment to determine how much you are expected to contribute towards the cost of your care. As of the 2026/2027 financial year, the capital thresholds in England are as follows:

If your total capital (including savings, stocks, property) is over £23,250, you pay 100% of your care costs.

If your total capital is between £14,250 and £23,250, you will receive partial funding. The ‘tariff income’ you pay is £1 per week for every £250 you own above the £14,250 threshold.

If your total capital is under £14,250, the council will pay for your care, though you will still contribute from your weekly income (such as your state pension), your capital will not be taken into account.

When is your home included in the means test?

This is the question most people want answered, and the answer depends entirely on your circumstances.

If you are receiving care at home, your property is completely disregarded during the financial assessment. The value of your home is only taken into account when you move permanently into a residential care home.

Even then, there are important exceptions. Your home will not be included in the means test if it continues to be occupied by any of the following: your spouse or civil partner; a close relative aged 60 or over; a dependent child; or a relative who is incapacitated. If any of these apply, the local authority cannot include the value of your property in its financial assessment, regardless of how much the property is worth.

Where the home is included in the means test, the local authority will take its current market value into account when calculating your expected contribution to care costs.

The 12-week property disregard

Even where a property would ordinarily be included in the means test, there is an important rule that many families are not aware of: the 12-week property disregard.

When someone first moves into permanent residential care, the value of their home is automatically disregarded from the financial assessment for the first 12 weeks. This rule exists to give families breathing space and time to make considered decisions about the property without facing immediate financial pressure.

During this period, the local authority will fund care based on your other capital and income only. After 12 weeks, the value of the property is then included in the assessment and your care costs are recalculated accordingly.

It is also worth knowing that some local authorities offer a Deferred Payment Agreement, which allows care fees to be paid from the proceeds of the estate after death rather than requiring the property to be sold immediately. If this is something you would like to explore, we would recommend contacting Norfolk County Council directly or speaking to one of our solicitors who can help you understand your options.

What is deliberate deprivation of assets?

Deliberate deprivation of assets occurs when someone intentionally reduces their capital by giving money away, transferring property or spending assets, with the specific purpose of avoiding or reducing care fee contributions.

Local authorities have the power to investigate asset transfers and, where deliberate deprivation is found, can treat the transferred assets as though they still belong to the person receiving care. Importantly, there is no fixed time limit on how far back a local authority can look when investigating this. The key question they will ask is whether, at the time of the transfer, the person could have reasonably foreseen that they might need care.

This does not mean that planning ahead is off limits. There is a clear and important distinction between deliberate last-minute asset transfers intended to avoid care costs, and legitimate estate planning undertaken well in advance of any care need arising. The former can have serious legal and financial consequences; the latter, done properly with professional advice, is entirely lawful.

This is an area where taking professional legal advice is essential. Our team can help you understand what is and is not permissible and ensure that any planning you put in place is both effective and legally sound.

What legitimate later life planning can look like

There is a great deal that can be done to plan for later life in a way that is both practical and legally robust. Some of the most important steps include:

Making or updating a Will

Setting up a Lasting Powers of Attorney

Considering whether a trust is appropriate

Talking to a financial adviser alongside a solicitor

Acting early

What to do if a relative is going into care now

If you are already facing this situation rather than planning ahead, it can feel overwhelming. Here are some practical first steps:

Contact the local authority to request a Care Needs Assessment and a Financial Assessment as soon as possible.

Make sure you understand the different ways that the local authority can and cannot help with financial costs.

Check whether any of the property disregard exceptions apply to your situation. Ask the local authority about Deferred Payment Agreements if selling the property immediately is not something the family wishes to do.

Get legal advice as soon as possible, particularly if there are concerns around Wills, LPAs or someone's affairs.

How Clapham & Collinge can help

We know that worrying about the family home on top of the emotional difficulty of arranging care for a loved one is an enormous amount to carry. Our role is to help you understand your position clearly, explore your options and put the right legal arrangements in place, whether you are planning ahead or dealing with an immediate situation.

Our Wills, Trusts and Probate team work closely with clients across Norfolk on all aspects of later life planning, from Wills and Lasting Powers of Attorney to trust arrangements and Court of Protection matters. Whatever your circumstances, we are here to help.

To arrange a consultation, please get in touch with your nearest Clapham & Collinge office:

Norwich - 01603 693500

Sheringham - 01263 823398

North Walsham - 01692 660230

Email: enquiries@clapham-collinge.co.uk

The information in this article is for general guidance only and should not be treated as legal advice. It is not a substitute for obtaining advice tailored to your circumstances. While we aim to ensure accuracy at the time of publication, laws and guidance may change. Clapham & Collinge LLP accepts no liability for any loss arising from reliance on this content. For personalised advice, please contact our client relations team to book an appointment.