Care fee`s and the sale of a home

Hi all,
I was discussing this today with a friend, entirely hypothetically. Imagine that my parents own a house, but don`t want it to be used to pay for their care in old age, which is coming up. They sell the house to a company that then rents it back to them for a small fee, in exchange for them being able to live there for the rest of their lives, after getting say 70% of the value of the house paid to them.

They give this money to their child, and within a short time they need to go into care. My friend sys that the council can take the money back somehow - is this correct? If so what ives the council the right to demand the money back from the child, when the child has no relationship with the council?

What if the couple give the money to a charity? Or even if they burn the money - in that final case there is no money left o be retreived.

Anyone got a simple answer? As I say, it`s hypothetical so I don`t need chapter and verse, it isn`t a homework question :-)

Thanks in advance!

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