The 7 year rule is commonly misunderstood in the context of care home funding. It refers to the gifting rules in inheritance tax rather than a specific care funding rule. If a person gives away assets and then needs care, the local authority may treat those assets as still being owned by the person when carrying out a financial assessment — a practice known as deliberate deprivation of assets. There is no fixed 7-year safe harbour period for care funding purposes. Each case is assessed on its merits. Anyone considering transferring assets to reduce care costs should take independent legal advice first.