Are Next of Kin Responsible for Care Home Fees? Your Complete Guide
No. Next of kin are not legally responsible for paying care home fees. Unless you have voluntarily signed a contract with the care home agreeing to pay, the financial responsibility lies with the person receiving care — not their family.
This is one of the most common worries families have when a loved one moves into residential or nursing care, so it’s worth understanding clearly what you are and are not obliged to do.
Who Is Actually Responsible for Care Home Fees?
The person moving into the care home is responsible for their own fees. How much they pay depends on:
- Their total savings and assets
- Whether they qualify for local authority funding
- Whether they’re eligible for NHS Continuing Healthcare
The local authority will carry out a financial assessment (means test) to work out how much your loved one needs to contribute. For more on how this works, see our guide to who pays for elderly care.
The Three Main Ways Care Homes Are Funded
| Funding Type | Who Pays | Qualifying Criteria |
|---|---|---|
| Self-funding | The resident | Savings above £23,250 (England) or property assets |
| Local authority funding | The council pays some or all costs | Savings below the local authority threshold |
| NHS Continuing Healthcare | The NHS pays in full | Care needs primarily driven by a health condition |
If your loved one owns property, it may be included in the financial assessment — though there are important exemptions (for example, if a spouse or certain relatives still live there). A deferred payment agreement allows the sale of the property to be delayed until after death.
When Might Family Members Choose to Contribute?
While you cannot be forced to pay, there are two situations where families sometimes choose to contribute voluntarily.
Top-Up Fees
If the council funds your loved one’s care but the amount doesn’t cover the full cost of their preferred care home, a family member can pay a top-up fee to bridge the gap.
Important: you must sign a contract with the local authority — not the care home — before agreeing to top-up payments. This is always a choice, never an obligation.
For a full breakdown of how this works, read our guide to care home top-up fees.
Choosing a More Expensive Home
Some families prefer a care home with additional facilities or amenities that local authority funding won’t stretch to. In these cases, relatives may choose to contribute towards the higher cost — but again, this is voluntary.
What Happens to Care Home Fees After Death?
This is an area that causes a lot of confusion. Here’s what you need to know.
Outstanding care home fees are paid from the estate, not by next of kin personally.
The executor of the estate is responsible for settling any unpaid fees before distributing inheritance. These debts take priority over legacies and gifts.
If Your Loved One Had a Deferred Payment Agreement
- The debt becomes payable 90 days after death
- Interest continues to accrue during this period
- The property is typically sold to repay what is owed
- If the executor does not pay within 90 days, the council can recover the debt through the courts
You cannot be pursued personally for any shortfall. If the estate doesn’t cover the full amount, the care home or council cannot come after next of kin for the remainder.
Transferring Assets to Avoid Care Fees: What You Need to Know
Many families consider transferring property or money to children in order to reduce assets before a financial assessment. This is known as deliberate deprivation of assets and it carries serious risks.
What Counts as Deprivation of Assets?
Local authorities can investigate:
- Gifting a house to children
- Large cash transfers to family members
- Selling property below market value
- Sudden large expenditure with no clear reason
There Is No 7-Year Rule for Care Fees
A common misconception is that transferring assets more than seven years before entering care means they won’t be counted. This is false. The seven-year rule applies only to inheritance tax — it has no bearing on care funding assessments.
There is no time limit on how far back a council can look. They can investigate transfers made 5, 10, or even 20 years ago if they believe the intention was to avoid care costs.
The Consequences
If a council determines that assets were deliberately transferred to avoid care fees:
- They will treat your loved one as still owning those assets
- They can pursue the debt through the courts
- They may seek to recover money from the person who received the assets
Always seek independent legal advice before transferring any property or significant assets.
What You Cannot Be Forced to Do as Next of Kin
To be clear, as next of kin you cannot be legally required to:
- Pay care home fees from your own income or savings
- Sell your own home or assets to fund a loved one’s care
- Sign any contract with the care home
- Cover any amount not met by the council
Common Questions
Can I be forced to pay for my parent’s care? No. You have no legal obligation to pay unless you have voluntarily signed a contract agreeing to do so.
What if the estate doesn’t cover the full amount owed? The care home or local authority can only recover what is available in the estate. They cannot pursue next of kin personally for any shortfall.
Should I transfer the house to my children before going into care? This is high-risk. Councils can investigate asset transfers with no time limit and may treat those assets as still owned during a financial assessment. Always take legal advice first.
What is a deferred payment agreement? It’s an arrangement where the council pays care fees upfront and recoups the cost from the sale of the property after death. It prevents families from having to sell a home immediately. You can read more in our guide to deferred payment agreements.
Does the NHS ever cover care home costs? Yes. If a person’s primary need for care is health-related, they may qualify for NHS Continuing Healthcare, which covers the full cost of care. See our guide to funding for nursing homes for more detail.
Where to Get Advice
- Age UK — Free advice line: 0800 678 1602 | ageuk.org.uk
- Citizens Advice — citizensadvice.org.uk
- Independent Age — independentage.org
- NHS — for NHS Continuing Healthcare assessments | nhs.uk
If you’re unsure about your position, particularly if the care home has asked you to sign a contract or if asset transfers are being discussed, speak to a solicitor specialising in elder care.
How Lidder Care Can Help
Navigating care funding is rarely straightforward, and families often come to us with exactly these concerns. Our team at Lidder Care is happy to talk through what funding options may be available and what to expect from the financial assessment process.
We provide residential care, nursing care, and specialist support at:
- Newgate Lodge Care Home, Mansfield
- Lowmoor Nursing Home, Mansfield
If you’re in the process of understanding care needs assessments or are thinking about next steps for a loved one, we’d be glad to help.
Get in touch with our team or call 01623 622 322.
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.