Planning for long-term care is something many people put off, but understanding how care home fees work in Scotland can help you make informed decisions and protect your assets for the future.
This guide explains what happens to your home and savings if you need care, and the legal steps you can take to safeguard your estate.
How Care Home Fees Work in Scotland
When you move into residential care, your local authority will carry out a financial assessment to determine how much you must contribute. This assessment considers:
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- Savings and investments
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- Property and land
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- Other capital assets
As of 2025, the key thresholds in Scotland are:
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- Under £22,000: Maximum financial support available
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- £22,000 to £35,500: Partial contribution required
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- Over £35,500: You are likely to pay full care costs
Even if you are self-funding, you may still qualify for free personal and nursing care payments.
Care home fees in Scotland can exceed £50,000 per year, meaning property is often the largest asset at risk if planning is not in place.
Is Your Home Included in Care Fee Assessments?
Your home may be included in the financial assessment if you move permanently into a care home. However, it may be disregarded if certain people still live there, including:
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- A spouse or civil partner
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- A relative aged 60 or over
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- A disabled or incapacitated family member
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- A carer who gave up their own home to care for you
Local authorities also have discretionary powers to ignore a property in exceptional cases, which can help prevent forced sales in compassionate circumstances.
Deliberate Deprivation of Assets: What You Must Know
Some people consider gifting their home or transferring savings to family members to avoid care fees. However, local authorities can still investigate this.
If a council believes assets were deliberately given away to reduce care costs, it can still assess you as if you owned them, a process known as “deliberate deprivation of assets.”
This makes last-minute transfers risky and often ineffective.
Legal Ways to Protect Your Assets from Care Fees
1. Property Protection Trusts
A property protection trust allows your home to be placed in trust while you retain the right to live there. This can help ensure the property is not treated as part of your personal assets in care assessments.
Benefits include:
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- Right to remain in your home
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- Protection of inheritance for beneficiaries
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- Greater control over estate distribution
Trusts must be created well in advance and for genuine estate planning purposes to withstand scrutiny from local authorities.
2. Protective Will Trusts for Couples
A protective will trust allows couples to leave their share of the home to beneficiaries while granting the surviving partner a lifetime right to live there.
This helps:
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- Protect part of the property from care fee assessments
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- Ensure children or heirs inherit as intended
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- Provide security for the surviving spouse
3. Power of Attorney: A Vital Safeguard
A Power of Attorney (POA) allows someone you trust to manage your financial and legal affairs if you lose capacity.
Having a POA in place ensures decisions about paying for care, managing property, or protecting assets can be made promptly without court delays.
Did you know? We offer expert support with will writing and setting up Powers of Attorney. Contact our team today to ensure your wishes are protected and your affairs are in safe hands.
Common Mistakes to Avoid
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- Transferring assets shortly before care is needed
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- Using unregulated asset protection schemes
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- Failing to seek qualified legal advice
Some unregulated trust schemes have caused significant financial losses, reinforcing the importance of working with a reputable solicitor.
Steps You Can Take Now to Protect Your Estate
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- Review and update your will
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- Consider a Power of Attorney
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- Seek legal advice on trusts and property ownership
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- Keep clear financial records
Regular reviews ensure your plans remain effective as care funding rules and personal circumstances change.
Why Early Planning Matters
The earlier you plan, the more options you have. Proper estate planning can:
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- Protect your home for future generations
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- Reduce stress for your family
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- Ensure your wishes are respected
Protecting your assets from care fees isn’t about avoiding responsibility; it’s about making informed, lawful decisions to secure your family’s future.
Speak to Kaur Sutherland About Care Fee Planning
Every situation is different. A qualified solicitor can advise on the best legal structures to protect your home and savings while ensuring compliance with Scottish care funding rules.
If you’re concerned about care home fees and protecting your estate, contact our team today or give us a call on 0141 611 6000 for clear, practical advice tailored to your circumstances.
