Are Next of Kin Responsible for Care Home Fees? Your Complete Guide
Quick Answer: No, next of kin are not legally responsible for paying care home fees unless you’ve signed a contract with the care home agreeing to pay. The responsibility for care costs lies with the person receiving care, and any outstanding care home fees will be settled from their estate.
Understanding Who Pays for Care Home Fees
When a loved one needs residential care or nursing care, one of the biggest concerns families face is: “Will I have to pay for this?”
The answer is straightforward: you are not held responsible for your loved one’s care home fees unless you’ve voluntarily signed a contract agreeing to pay.
Who Is Legally Responsible?
The person moving into a care home is responsible for their own care home fee. How much they pay depends on:
- Their income and savings
- Whether they qualify for local authority funding
- Whether they’re eligible for NHS Continuing Healthcare funding
Local authorities will conduct a financial assessment (also called a care needs assessment) to determine how much your loved one can contribute towards care.
How Care Home Funding Works
There are three main ways care homes in the UK are funded:
1. Self-Funding
If your loved one has:
- Savings above £23,250 (in England)
- Property they own (unless someone else lives there who qualifies for an exemption)
They’ll likely need to pay for care themselves. The care home will issue an invoice for any outstanding fees directly to them.
2. Local Authority Funding
If your loved one’s assets are below the local authority threshold, the council will pay part or all of their care costs. The local authority conducts a means test to determine eligibility.
3. NHS Continuing Healthcare
If care needs arise primarily from a health condition, your loved one may be eligible for NHS continuing healthcare. This covers the full cost of care home fees and is paid by the NHS, not local authorities.
When Next of Kin Might Choose to Pay
While next of kin responsible for care home fees is a myth, there are situations where family members voluntarily contribute:
Top-Up Fees
If the council provides funding but it doesn’t cover the full cost of care at your preferred care home, you can pay a top-up fee to cover the difference. Important points:
- You must sign a contract with the local authority before agreeing to these payments
- Top-up fees bridge the gap between what the council will pay and the actual cost of care home fees
- This is your choice, not a legal obligation
Choosing Premium Care Homes
Some families prefer new care homes or facilities with additional amenities. If local authority care funding doesn’t stretch to cover these options, relatives may choose to pay the fees or contribute towards your care costs.
Care Home Fees After Death: What Happens Next
Understanding what happens to care home fees after death is crucial for families planning ahead.
Immediate Steps (First 90 Days)
When your loved one passes away:
- Contact the care home to discuss any unpaid care home fees and arrange room clearance
- Notify the local council if there’s a deferred payment agreement in place
- Gather financial documents for the estate executor
- Arrange property valuation if needed to settle debts
Outstanding Care Home Fees
Any outstanding fees at the time of death must be paid from your loved one’s estate before inheritance is distributed. The care home will issue an invoice for outstanding fees to the executor.
These debts take priority over:
- Legacies to beneficiaries
- Personal gifts
- Other estate distributions
Deferred Payment Agreements
If your loved one had a deferred payment agreement with the local authority:
- The debt becomes payable 90 days after death
- Interest continues to accrue during this period
- The property is typically sold to repay the debt
- The council can recover amounts through the courts if the executor doesn’t pay these outstanding fees within the 90-day window
Important Protection
Next of kin are not legally obliged to pay these debts from their own money, even after death. The estate must cover the costs—not you personally.
Avoiding Care Home Fees: What You Need to Know
Many families wonder about transferring assets to children to avoid care home fees. This is called “deprivation of assets” and can have serious consequences.
What Is Deliberate Deprivation of Assets?
Deliberate deprivation of assets occurs when someone gives away or transfers assets with the intention to avoid care costs. Local authorities can investigate:
- Gifting your house to my children
- Large cash gifts to family
- Selling property below market value
- Converting assets into excluded items
- Sudden extravagant spending
The 7-Year Rule Myth
There is no 7-year rule for care fees. Many believe that if you transfer your house to my children at least seven years before going into care, the local authority won’t consider it during assessment. This is false.
The 7-year rule applies only to inheritance tax, not care home costs.
How Far Back Can Councils Investigate?
There is no time limit on how far back local authorities can look at potential deprivation of assets. The local authority may investigate transfers from:
- 5 years ago
- 10 years ago
- 20 years ago
- Any time period
Key factors councils consider:
- Timing: When was the transfer made?
- Motivation: Why was it done?
- Foreseeability: Could the person reasonably expect to need care?
Consequences of Asset Disposal
If the council determines you deliberately tried to avoid care home fees:
- They’ll treat your loved one as still owning those assets
- They can claim the money owed through courts
- They may pursue the person who received the assets
- Your loved one could be liable for care home fees they can’t actually pay
Getting Legal Advice
Before transferring any assets, always seek advice about care home fees from:
- A solicitor specialising in elder care
- An independent financial advisor
- Citizens Advice Bureau
Professional legal advice can help you make informed decisions without jeopardising care funding.
Finding the Right Care Home
When choosing a care home for your loved one, understanding the cost of care is just one factor. Here’s what to consider:
Types of Care Homes
Residential Care Homes
For people who need help with daily tasks but not nursing care
Nursing Homes
For those requiring regular nursing care from qualified professionals
Specialist Dementia Care
Care homes specifically designed for people with dementia
Questions to Ask When You Find a Care Home
About Care Home Funding:
- What is the weekly care home fee?
- Does this care home accept local authority funding?
- Are there any additional costs not included in the base fee?
- How do you handle payment of fees?
About the Contract:
- What happens if I can’t pay care home fees?
- Will you ask me to sign a contract as next of kin?
- What are the terms for outstanding care home fees?
- How much notice is required if we move to a care home elsewhere?
About Care Quality:
- What level of care needed do you cater for?
- How many staff members are on duty?
- What activities and social care programs do you offer?
- Can I see your latest CQC inspection report?
For more guidance, read our article on questions to ask when choosing a care home.
Funding Options and Support
Beyond the three main funding sources, several options can help pay for care:
Financial Solutions
Equity Release
Unlocking money from your loved one’s property without having to sell your home immediately
Care Annuities
Insurance products providing guaranteed income towards care
Attendance Allowance
A benefit for those over state pension age who need help with personal care
NHS-Funded Nursing Care
Contribution from the NHS for registered nursing care in care homes
Respite Care
Short-term care that can help families manage costs while providing temporary relief
Where to Get Advice About Care Home Fees
Age UK
Free advice line: 0800 678 1602
Website: www.ageuk.org.uk
Citizens Advice
For guidance on care charging and eligibility
Website: www.citizensadvice.org.uk
NHS
For NHS continuing healthcare assessments
Website: www.nhs.uk
Independent Age
Free advice for older people
Website: www.independentage.org
Your Rights and Protections
What You Cannot Be Forced to Do
As next of kin, you cannot be forced to:
- Pay their fees from your own income or savings
- Sell your own property to fund your care for someone else
- Sign any contract with the care home fees unless you choose to
- Cover any portion of your care home costs not covered by the council
What You Can Do
You can voluntarily:
- Pay a top-up fee if you prefer a more expensive care home
- Help your loved one into a care home by organising their finances
- Act as their financial representative
- Contribute towards your care if you wish to
When to Seek Help
Get professional legal advice if:
- The care home asks you to agree to pay fees
- You’re considering transferring assets
- You’re unsure about a contract with the care home
- The council claims deliberate deprivation of assets
- You’re worried about care home fees after death
Learn more about understanding care needs assessments and the steps to getting into a care home.
Common Questions Answered
Can I be forced to pay for my parent’s care?
No. You’re not legally responsible for paying unless you sign a contract. Fees unless you’ve voluntarily agreed are not your obligation.
What if there’s not enough money in the estate?
Outstanding fees will be paid from whatever is available in the estate. The care home or council cannot pursue you personally for any shortfall.
Should I transfer the house to my children to avoid care home fees?
This is risky. Councils can investigate asset disposal with no time limit. Always seek legal advice before transferring property.
How much will my loved one have to pay?
It depends on their financial assessment. Those with under £23,250 (England) may receive local authority funding. The council will pay some or all costs based on means testing.
What about the family home?
If your loved one owns their home, it may be included in the financial assessment—but not if a spouse, partner, or certain relatives still live there. Consider a deferred payment agreement to delay selling until after death.
For more information, see our guide on who pays for elderly care.
Can the care home refuse to admit someone on local authority funding?
Care homes cannot refuse admission solely because someone receives council funding, but they can refuse if they don’t have a contract with that local authority.
Key Takeaways
✓ Next of kin are not held responsible for care home fee payments
✓ The care home resident is responsible for their own care costs
✓ Outstanding care home fees are paid from the estate after death
✓ Deferred payment agreements must be repaid within 90 days of death
✓ There’s no time limit on investigating deliberate deprivation of assets
✓ The 7-year inheritance tax rule does NOT apply to care fees
✓ Always get legal advice before transferring assets
✓ You can choose to pay a top-up fee but cannot be forced to
Let Lidder Care Guide You
Navigating care home funding and finding a care home can feel overwhelming. At Lidder Care, we understand the financial concerns families face when a loved one into a care home becomes necessary.
Our team provides clear, compassionate guidance about:
- Understanding care home fees and contracts
- Exploring care options and local authority funding
- Making the move to a care home as smooth as possible
- Ensuring your loved one receives excellent care regardless of paying care methods
Our Care Homes:
- Newgate Lodge Care Home (Mansfield)
- Lowmoor Nursing Home (Mansfield)
Both facilities offer:
- Person-centered residential care and nursing care
- Support with financial assessment processes
- Transparent information about care home costs
- Comfortable, welcoming environments
Get in Touch:
Contact us today or call 01623 622 322
We’re here to help you understand your care funding options and find the best care home is the best choice for your family’s needs.
Related Resources:
- Care Home vs Nursing Home: Understanding the Differences
- How to Choose the Perfect Care Home for Your Family
- Coping with a Loved One in a Nursing Home
Manjas is the Managing Director of Lidder Care, overseeing all aspects of the group’s operations with a focus on long-term strategic goals. His connection to care began at an early age, working as a night carer at Lowmoor Nursing Home while still in school. This experience fostered a deep personal and professional commitment to delivering high-quality, person-centred care.
After completing an Accounting degree, Manjas established a successful career in media and property development, founding Film AM, PKL Investments, and The Stay Company. This expertise now allows Lidder Care to offer bespoke solutions through in-house design and construction capabilities.
Manjas’ early experiences in care continue to inspire his dedication to providing excellent care, investing in staff, services, and new technologies to enhance Lidder Care’s offerings.