Residential Care Home Planning

How Are Residential Care Costs Funded?

Residential care in England is means-tested under the Care Act 2014. If your assessable capital, including property in most cases, exceeds the upper capital limit of £23,250, you fund your own care in full. Below the lower capital limit of £14,250, the local authority takes over funding based on your income; between the two, you contribute £1 per week for every £250 of capital, on top of your income. These limits have remained unchanged since 2010 and are confirmed unchanged again for 2025/26 and 2026/27.

“Will I Have to Sell My Home to Pay for Care?”

Not always. Your home is disregarded from the means test in certain circumstances, most commonly where a spouse, partner, or another qualifying relative continues to live there. The rules on what counts as a notional asset, and how deliberate deprivation of assets is treated, are complex, which is where early advice makes the most difference.

Residential Care Planning Services We Provide

We advise on the legal aspects of planning for care costs, working alongside financial advisers where appropriate.

Understanding the Means Test

We explain clearly what counts, what is disregarded, and what surprises families most, often the fact that a home is not always taken into account.

Lasting Powers of Attorney

Planning for possible future incapacity, including a move into care, makes a Property and Financial Affairs LPA essential; without one, your family may need a longer, costlier Court of Protection application instead.

Wills and Trust Planning

“Can I protect something for my children?” Care costs can significantly reduce what you leave behind. We advise on how your Will interacts with care planning, and whether a Discretionary Trust could legitimately protect a share of assets, without straying into deliberate deprivation.

Deferred Payment Agreements

A Deferred Payment Agreement lets eligible individuals delay paying care fees until after death, using their property as security. We advise on eligibility and how it interacts with wider estate planning.

NHS Continuing Healthcare

Where a person’s primary need is health-related rather than social care, NHS Continuing Healthcare can fund the full cost, something many families never find out about. We can offer general guidance on eligibility, and if a refusal needs challenging, we’ll refer you to a specialist.

Why Choose Nelsons for Residential Care Planning

Families facing care costs choose Nelsons for honest, practical advice — here is why.

• Recognised by The Legal 500 for Wills, Trusts and Probate work across the East Midlands.
• Honest advice on what is, and is not, legitimate planning, rather than promising to avoid means-testing altogether.
• Advice that fits alongside LPAs, Wills and Trusts, not in isolation.

Speak to Our Residential Care Planning Solicitors

Call 0800 024 1976 or complete our online enquiry form.