Another common method of trying to avoid high care fees is by transferring property into somebody else's name. However this is fraught with complications as, while property generally can be transferred in this way, the person who has transferred it cannot then continue to live in it or benefit from it in any way unless they pay a market rate of rent which is taxable. They must also live for seven years before the value of the property becomes free of inheritance tax.

The Department of Health says that it would be unreasonable to decide that a person had disposed of an asset in order to reduce their charge for accommodation if they disposed of the asset at a time when they were relatively fit and healthy and could not have foreseen the likelihood of the need for a move to residential accommodation.

However, the same rules are not applicable to those who transfer property just before or after they require care. There are specific "deliberate deprivation" rules to stop people giving away property which would then lead to the relevant local authority having to contribute to the person's care costs. Local authorities can now recover any sums gifted from the person but only if the gift occurred within six months of the donor requiring care. However, if the local authority suspects deliberate deprivation there is no time limit to their investigations. So those who are looking into the issues of gifting out assets would be well advised to contact an experienced solicitor who specialises in such matters.

Some who may be otherwise forced into selling their property to pay for care may consider renting out their property. They should be aware that, if they are looking to go down this route, that the rent will probably be subject to tax and the income generated may bear little relation to the amount needed for care fees, nor will it increase at the same rate as the fees each year. Also, there may well be times when no rent is coming in, such as when tenants move on, while it is likely that the property will need money spending on it from time to time.

If all other avenues have been explored and have proved to be unsuccessful it may be that selling the property may be the only option and many are faced with this situation, it is estimated that about 40,000 homes are sold each year to pay for private care fees. Obviously, with the property market sluggish at best, it is not the best time to sell and those who do may well end up with a smaller sum than they originally intended. If the property itself is not selling that also provides a problem in that the family may end up relying on the care home to run up a debt or look for help through the local authority's Deferred Payment Scheme. If these two options are unavailable they may well end up having to fund the fees themselves.

In terms of who should sell the property, there are some companies which specialise in the moving of elderly people into care and can provide a tailored service with some even realising money prior to the sale or purchasing of the house. An Equity Release product is another method to consider, which is an agreement between the homeowner and the provider which allows the person concerned to unlock the money tied up in their home. Tax-free, it enables the person to carry on living in the property but frees up money and, increasingly, it is being used as a way in which people are paying for care in their own homes, so delaying or even preventing altogether the move into a care home.