Lifetime Trusts
Lifetime Trusts are often referred to as “Asset Protection” or “Property Protection Trusts”. Unlike ‘Testamentary Trusts’, which are established upon your death, Lifetime Trusts are typically created immediately. For instance, your home is donated to the Trust, allowing you to continue residing there.
Generally speaking, it is not possible to use a Lifetime Trust to exempt your home from the local authority's calculations of your assets when determining the cost of your care facility.
For this reason, anyone contemplating establishing a Lifetime Trust should be aware that a local authority may view this arrangement as "Deliberate Deprivation of Assets." If so, they can assess you as if you still owned the property (and refuse to fund your care).