Twenty years ago my wife's mother moved into a purpose-built, self-contained annexe to our house. My wife and I are the owners of the house (subject to a mortgage) and it is registered in our names at the Land Registry. Mother-in-law contributed to the cost of building the annexe.

A Deed of Trust was drawn up between the three of us designed to ensure that mother-in-law received a percentage of the net proceeds should the property be sold in her lifetime. She is now 97, has just had a hip replacement and will need to go into a Care Home of some sort. Will the value of the annexe, if such a value can be assessed, count towards her capital when the Local Authority makes a decision about whether or not she has to contribute towards her care?

I'm not sure if this is the way you want it to read, but...'She is now 97, has just had a hip replacement and will need to go into a care home of some sort....'

Why?

A hip replacement is meant to give you back your mobility, not take it away from you and make you completely dependent.  True, she will need physio etc and may need it for longer than a younger person would, but unless I have read it wrongly I cannot see why having a hip replacement at 97 necessarily means that she'll never be able to live at home again. Her orthopaedic surgeon must have thought it was worth doing!

PS: I've had both hips replaced and one of them has been revised twice.

Thanks for your reply. I'm pleased to hear that your hip replacements have been a success and that you are able to take care of yourself. However, it's not the hip replacement that is causing the problem. Despite the hospital's best efforts she is very weak, is suffering from mild dementia and loss of memory, is unable to walk more than a few steps even with assistance, is unable to wash or dress herself and so will need 24 hour nursing care.