“Can I give my house to my children so I don’t have to pay care fees?”

“Can I give my house to my children so I don’t have to pay care fees?”

It’s a question we are asked surprisingly often. The short answer is: not necessarily — and it can be much more complicated than people realise.

A common misconception is that transferring your home to your children means it will automatically be protected if you later need residential care.

It doesn’t.

If you deliberately give away your home, or transfer it for less than its true value, with the intention of reducing the amount you may have to contribute towards your care costs, the local authority may consider this to be deliberate deprivation of assets.

In those circumstances, the council may assess you as though you still own the property. In some circumstances, it may also seek to recover costs from the person who received the asset.

So does that mean you can never give your home to your children?

No.

People are generally free to make gifts of their assets. The important issue is why the gift was made and what was known about the need for care at the time. The circumstances of each case matter.

There can also be other legal and practical consequences to transferring your home, including potential tax implications, loss of control over the property and risks if your child later divorces, becomes bankrupt or dies.

There may be other ways to plan for future care costs and protect your family’s position, depending on your circumstances.

The key message: don’t transfer your home simply because someone has told you that it is a guaranteed way of avoiding care fees.

Before making such a significant decision, take proper legal advice.

If you or a family member are considering care fees, property ownership, trusts or inheritance planning, our private client team can advise you on your options.

This post is for general information only and does not constitute legal advice.