Care Home Fees When Spouse Is Still at Home UK (2026): Property Disregard Explained

No — if your spouse, civil partner, or cohabiting partner is still living in the family home as their only or main home, the property is completely excluded from the care home means test under the Care and Support (Charging and Assessment of Resources) Regulations 2014 (Reg.18). This is called the 'mandatory property disregard': (1) THE RULE: the local authority MUST disregard (exclude) the value of the home from the financial assessment for as long as a 'qualifying person' is living in it; (2) WHO IS A QUALIFYING PERSON FOR THIS DISREGARD: (a) The spouse, civil partner, or cohabiting partner (same-sex or opposite sex) of the resident — note there is no minimum period of cohabitation required; the Regulations simply specify 'a person who lives with the resident as if they were their spouse or civil partner'; (b) A relative of the resident who is aged 60 or over; (c) A dependent relative under 18; (d) A relative who is incapacitated due to disability or illness; (3) WHAT 'DISREGARD' MEANS IN PRACTICE: the local authority calculates the resident's assessed contribution using only: savings and investments; rental income; pension income; other income. The capital value of the family home — regardless of whether it is worth £100,000 or £1,000,000 — is simply ignored. The local authority funds the shortfall between the resident's assessed income contribution and the full care home fee; (4) DURATION: the disregard lasts for as long as the qualifying person is living in the property as their home. It is not time-limited. If the at-home spouse lives in the property for 10 years, the disregard applies throughout; (5) KEY POINT: this means many couples in this situation are significantly over-paying for care — or being told they must sell the family home — when in fact the property cannot be included in the assessment. Always get independent financial advice before agreeing to sell the family home to fund care.

Even when the family home is disregarded, the local authority still assesses the resident's income to determine how much they must contribute towards their care. The interaction with the at-home spouse's income requires careful understanding: (1) INCOME IS ASSESSED INDIVIDUALLY: both spouses have their own income — State Pension, occupational pensions, investment income, rental income. Only the RESIDENT'S income is assessed for care contribution purposes. The at-home spouse's own income is protected and cannot be taken to fund the resident's care; (2) ATTENDANCE ALLOWANCE: if the resident receives Attendance Allowance (£72.65/week lower rate or £108.55/week higher rate), this IS included in the income assessment. AA continues for the first 28 days in residential care, then ceases if the local authority is funding any part of the care; (3) PENSION CREDIT / GUARANTEED CREDIT: if the resident receives Pension Credit, it is included in the assessment. The maximum contribution from income is the full care home cost minus the Personal Expenses Allowance (PEA — £30.15/week) which the resident retains for personal spending; (4) MINIMUM INCOME GUARANTEE (MIG) FOR THE AT-HOME SPOUSE: the local authority must ensure that the at-home spouse retains sufficient income to meet their own needs. The MIG is broadly set at the Pension Credit standard minimum guarantee level (around £218.15/week for a single person in 2026). If the resident's assessed income contribution would reduce the household income below the MIG (for example, where most household income comes from a joint pension), the local authority reduces the assessed contribution to protect the MIG; (5) JOINT ACCOUNTS AND SAVINGS: savings held in a joint account are typically attributed equally between spouses — each half assessed independently. Each spouse retains their £23,250 upper threshold. So a couple with joint savings of £40,000 — each attributed £20,000 — means each is below the upper threshold; (6) RENT: if the at-home spouse rents out part of the property while living in it, the rental income may be assessed. Seek specialist advice if this applies.

The mandatory property disregard lasts only as long as the qualifying person is living in the property. When it ends, the local authority reassesses the financial position: (1) WHEN THE AT-HOME SPOUSE DIES: if the at-home spouse dies while the resident is still in care, the property no longer has a qualifying occupier. The disregard ends. The property becomes assessable capital for the continuing means test. The local authority will conduct a financial reassessment. Options for the estate/family: (a) Sell the property and use the proceeds to self-fund the remaining care; (b) Arrange a Deferred Payment Agreement (DPA — Care Act 2014 ss.34-36) where the council lends against the property at the government rate; (c) Apply for the 12-week disregard (automatically applies at the start of any new property exposure — see below); (2) WHEN THE AT-HOME SPOUSE ALSO GOES INTO CARE: if the at-home spouse also needs care and leaves the property, the disregard ends for both residents. Each is now subject to their own financial assessment. The family home is assessable capital for both. The 12-week property disregard applies at the start of each person's permanent residential care placement — but this is automatic only at the point of entering care, not when the qualifying occupier subsequently leaves; (3) 12-WEEK DISREGARD ON REASSESSMENT: when a qualifying occupier leaves the property and it becomes assessable for the first time, does the 12-week property disregard apply? The 12-week disregard applies at the beginning of a 'permanent admission to a care home' — it is designed for the first period of care, not for mid-care reassessments. However, if the reassessment creates a new need to sell the property, the local authority should allow reasonable time and may apply discretion. The DPA is the better protection in this scenario; (4) THE RESIDENT DIES FIRST: if the resident dies while the at-home spouse is still living, the resident's estate passes under the will or intestacy. The at-home spouse retains the family home. No care home debt arises (unless there was a DPA — which is discharged from the estate). The at-home spouse's own means test only begins if they later go into care; (5) PLANNING WITH A WILL: a life interest trust (IPDI — IHTA 1984 s.49A) in the will protects the family home for the at-home spouse. On the resident's death, their share passes into trust (not outright to the at-home spouse). The at-home spouse has the right to remain in the property for life. When the at-home spouse later needs care, the trust capital (the share in the property) is not treated as the at-home spouse's capital for means testing — it belongs to the trust, not the resident.

If the property disregard applies — because you are still living in the family home — the local authority CANNOT require the property to be sold to fund care. This is a legal protection, not a discretionary favour: (1) THE LOCAL AUTHORITY'S OBLIGATION: the council must conduct a lawful financial assessment. If you are living in the property and are a qualifying person (spouse, civil partner, cohabiting partner, or qualifying relative), the property MUST be excluded. If the council has included the property value in the assessment when it should not have, this is a legal error. Challenge the assessment in writing; (2) WHAT COUNCILS SOMETIMES DO WRONG: (a) Including the property when the at-home spouse is entitled to the disregard; (b) Suggesting that the at-home spouse should take out equity release to fund care (not legally required); (c) Pressuring families to sell before exploring DPA or other options; (d) Applying the disregard only temporarily when it should be permanent; (3) WHAT TO DO IF THE COUNCIL INSISTS ON INCLUDING THE PROPERTY: write formally to the council referencing: Care and Support (Charging and Assessment of Resources) Regulations 2014, Regulation 18 (mandatory property disregard); the specific qualifying person status of the at-home spouse; request a formal review of the financial assessment. If the review is unsatisfactory, escalate to the Local Government and Social Care Ombudsman (LGSCO); (4) EVEN WITHOUT A QUALIFYING OCCUPIER — THE DPA OPTION: if the disregard does not apply (perhaps there is no qualifying occupier), the council still cannot force an immediate property sale. The DPA scheme must be offered (Care Act 2014 s.34 — if eligible, the council MUST offer a DPA if requested). A DPA allows care to be funded without selling the property — the debt is secured as a charge and repaid on death or eventual sale; (5) LEGAL ADVICE: if you are being pressured to sell the family home to fund care, and you believe a disregard should apply, seek immediate independent legal advice from a social care solicitor. The legal protections are clear — but families often do not know to assert them.

Will planning is the most effective long-term protection for married couples concerned about care home fees affecting the family home. The key mechanism is a life interest trust will (IPDI trust): (1) THE SIMPLE MIRROR WILL PROBLEM: if both partners make simple mirror wills ('everything to each other; then to the children'), the survivor receives the first deceased's estate outright. The survivor then owns the full property. If the survivor later needs care, the property is assessed (subject only to any qualifying occupier disregard). On the survivor's death, the estate may have been significantly depleted by care costs; (2) THE LIFE INTEREST TRUST SOLUTION: instead of passing assets outright to the surviving spouse, the will creates a life interest trust (IPDI — IHTA 1984 s.49A). The trust holds the estate assets (including the property). The surviving spouse has: (a) The right to live in the property for life (a life interest in the property); (b) The right to the income from trust investments; (c) No right to the trust capital itself. When the survivor later goes into care, the trust CAPITAL is not their capital for means testing. The local authority cannot assess it as the survivor's asset — it belongs to the trust, not the survivor. Only the survivor's own assets (outside the trust) and income are assessed; (3) IHT BENEFITS ALONGSIDE CARE PROTECTION: the IPDI trust also provides IHT benefits: (a) The spouse exemption applies on first death — no IHT; (b) The RNRB is preserved on second death if the property passes to lineal descendants; (c) The NRB is transferable; (d) The combined NRB (£650,000) and RNRB (£350,000) = £1,000,000 before IHT; (4) TIMING: the will trust must be created BEFORE the care need arises. If the trust was specifically set up BECAUSE care was reasonably foreseeable, a local authority could argue deprivation of assets (Care Act 2014 s.70). A trust created in a will (on first death, which often predates the survivor's care need by years) generally avoids this argument. A trust created inter vivos (during lifetime) when care is imminent is riskier; (5) PRACTICAL CHECKLIST: (a) Both partners should make life interest trust wills now — while both have capacity; (b) Ensure the LPA is registered (LP1F and LP1H) for both partners; (c) Review the wills whenever circumstances change; (d) Discuss with a specialist solicitor — the trust provisions need careful drafting for the specific family.