Aside from benefits there are various other ways of taking steps to ensure that you are not faced with exorbitant care home fees for a period of time. One is insurance bonds which are not generally counted towards wealth calculation and are particularly tax-efficient if they are taken out while the person is still relatively young and a higher-rate taxpayer. So, if £100,000 is placed into an insurance bond and is invested in a range of funds, the person concerned will be taxed on gains at the basic rate of income tax and no further tax will have to be paid until after the bond is encashed or until the person's death, whichever comes first.

Up to 5% of the original capital can be withdrawn every year for up to 20 years and these withdrawals are deemed to be a return of capital. So in this case £5,000 per year can be provided towards care fees, whereas if the person moves assets into an insurance bond shortly before they need to go into care, they will still be counted towards that person's wealth.

Another way of trying to avoid a massive bill for residential care is by sharing property with relatives. If a person is sharing their home with a spouse or other dependants, or are receiving care in their own home, they will not be forced to sell the home to help pay for their care. It is only if they are living alone that the property will count towards the £23,250 limit. The local authority has a discretionary power to disregard the value of the property where it is the home of a relative under the age of 60 who has been caring for the resident for a substantial period of time.