Can a Trust Protect Your Assets from Care Fees?

Concerns about care fees are increasingly common, particularly for homeowners. Many individuals worry that the proceeds from selling a property could be significantly reduced if later-life care becomes necessary, which often leads to questions about whether trusts can play a role in protecting assets. Whilst trusts can be useful planning tools in certain situations, it is important to understand how they are viewed in the context of care fee assessments and why careful, early advice is essential.

Why Care Fees Raise Asset Protection Questions

For many families, a property represents the largest single asset within an estate. When long-term care is required, local authority funding assessments consider an individual’s financial position, including savings and, in some cases, property interests. Understandably, individuals and families wish to explore legitimate ways of structuring their affairs so that assets are managed sensibly and family interests are considered, particularly where there is a desire to preserve wealth across generations.

Where Trusts May Feature in Planning

Trusts are established for a wide range of reasons, including estate planning, tax considerations, and asset management. In later-life planning discussions, they are sometimes raised in connection with passing assets to intended beneficiaries, managing how wealth is distributed, protecting vulnerable family members, or structuring ownership arrangements. However, the interaction between trusts and care fee assessments is often misunderstood, and assumptions about what a trust can achieve do not always align with how funding authorities apply the rules in practice.

The Importance of Timing and Intention

One of the most important factors in this area is the concept of deliberate deprivation of assets. If assets are transferred into a trust primarily to reduce an individual’s exposure to care costs, local authorities may still treat those assets as available for assessment purposes. This means that simply placing a property or sale proceeds into a trust does not automatically place them outside the scope of care fee calculations, as each situation is highly fact-specific and authorities will typically consider timing, intention, and surrounding circumstances. Putting assets into trust long before the issue of care arises may be the best bet so it's important to take advice sooner rather than later.

Planning Requires Careful Advice

Trusts can be entirely appropriate and beneficial in many estate planning contexts, but they are not a universal solution to care fee concerns. Decisions taken without a full understanding of the legal and financial implications can lead to unexpected outcomes, particularly where regulations or assessments apply differently than anticipated. Obtaining advice at an early stage allows planning to be considered in a structured and compliant way, taking account of both current rules and long-term objectives.

Discussing Your Options

If you are concerned about how care fees may affect your assets or estate, Marsons Solicitors can provide clear, practical guidance based on your individual circumstances.

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