Are care home fees avoidable? No, unless you have assets worth less than £23,250 (this includes your property). However, a Life Interest Trust can be an advantageous way to safeguard your assets for future generations.
Given the right timing, you can leave your home to your spouse or civil partner under a Life Interest Will Trust and as such, give them the right to use your home for their life. On your death, there would be a spouse exemption so no Inheritance Tax payable. If your spouse or civil partner then requires care, under present legislation, the Local Authority cannot set their fees against your home if it is protected by the existence of a Trust. This would also ensure that your home passes to your beneficiaries as desired.