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If you plan ahead, you can make sure you still have something of value left to leave in your will. There are also ways to avoid selling your home, in case your condition improves and you want to live there again.

How your contribution to your care home fees is assessed

If you live in England and have over £22,250 in capital (savings, investments and property including the value of your home), your local council will assess you as being able to meet the full cost of your care home. If you live in Wales the limit is £22,000.

• More about working out your contribution to your care home fees

What happens if you're a home owner

If you own your home, it may be counted as capital 12 weeks after you move into a care home on a permanent basis. However, your home won't be counted as capital if any of the following people still live there:

Your local council may choose not to count your home as capital if your carer lives there but it is not obliged to do so.

Your home and temporary stays in a care home

If you go into a care home temporarily, you won't have a financial assessment for the first eight weeks for this period the local council will consider what it is fair for you to pay. For the next four weeks a financial assessment will be made to determine what you should pay. As your stay is temporary your home won't be counted as capital.

• More about temporary stays in a care home

Keeping your home and assets

Deferred payments agreements

Local councils can make deferred payments agreements with people who are assessed as having to pay the full cost of their care home fees because their homes are counted as capital. The aim is to allow home owners to avoid selling their homes to pay for the cost of their care.

Under a deferred payments agreement, you pay only the contribution you would have to make if your home was not counted as capital, while the local council keeps a record of the remaining amount that you owe. At the end of your life or at an earlier date of your choice, the council collects the money it is owed either from the proceeds of the sale of the house or from whoever inherits the property.

All deferred payments agreements are set up at the discretion of the local council.

Setting up a family trust

Setting up a family trust is one way of transferring the ownership of your home or other assets to someone else while you're still alive. You should get advice from a solicitor on this because the law surrounding trusts is complicated.

• An introduction to UK family trusts (money, tax and benefits section)

Giving money or property to other people

You may choose to give money or assets to your children or grandchildren, for example. There is no monetary limit on gifts your children, grandchildren or other relatives, but they may have to pay tax on any interest or income they receive.

If you give an asset to someone within the seven years before you die, the person who receives the gift may have to pay Inheritance Tax on it.

It is against the law to transfer ownership of an asset to another person specifically to avoid paying your care home fees. There is no time limit as to how far back the council can go to find out if you have given away assets to avoid paying care costs. If this is fouund, the council can treat you as if you still had the asset and you will have to pay for your care accordingly. If the transfer was within six months of you needing care then the council can recover the cost of your care from the person(s) who received the gift. The law states that if you've transferred an asset to another person within the six months before you get a place in a care home, your local council can make you pay your care home fees.

• Giving money to your children and grandchildren (money, tax and benefits)
• Inheritance Tax (money, tax and benefits section)

Inheritance planning

Before you move into a care home permanently, you should plan your inheritance and make a will if you havent already done so.

• Inheritance planning (money, tax and benefits)
• Financial reasons to make a will (money, tax and benefits)

Renting out your home

One alternative to selling your home may be to rent it out to tenants and use the rent to pay your care home fees. There is detailed information on renting out a property in the letting your home section.

• Letting your home

Selling your home

If you have to pay the full cost of your care home fees, you may decide to sell your home or other assets. There is detailed information on selling a property in the selling your home section.

• Selling your home