Are Next of Kin Responsible for Care Home Fees? Your Complete Guide

Quick answer: No, next of kin are not personally liable for a relative’s care home fees in the UK, unless they have signed a contract agreeing to pay, hold power of attorney and have mismanaged funds, or have deliberately transferred assets to avoid care costs. Care home fees are the resident’s own responsibility, funded from their income, savings, or property, with the local authority contributing once assets fall below the means-tested threshold. This guide has been updated for 2026/27.

“Families come to us terrified they’re about to lose their own home to pay for a parent’s care. In almost every case, once we walk through it together, that fear turns out to be unfounded. It’s one of the most common and most damaging myths in the sector.” — Manjas Lidder

Who Is Actually Responsible for Care Home Fees?

The person receiving care is responsible for their own fees. This is a fundamental principle of UK care law, and it applies whether the resident is self-funding or receiving local authority support.

• The resident pays from their own income, savings, and, where applicable, the value of their property
• The local authority contributes once the resident’s assessable capital falls below the upper threshold
• Next of kin, children, or other relatives are not liable, simply by virtue of the family relationship

“I’ve sat across the table from adult children who assumed that being named next of kin meant they’d inherited the bill. It doesn’t. Being someone’s son, daughter, or next of kin is not a financial contract.” — Manjas Lidder

When Might a Family Member Become Liable?

There are specific circumstances where a relative could become financially responsible, but these are the exception, not the rule.

Circumstance	What it means
Signed a third-party top-up agreement	You’ve formally agreed in writing to cover the difference between the local authority rate and a more expensive home
Deprivation of assets	The resident (or someone acting for them) deliberately gave away money or property to avoid care fees
Misuse of power of attorney	An attorney has misappropriated the resident’s funds rather than using them for care costs
Joint financial products	A joint bank account or jointly owned asset is drawn into the financial assessment

Outside of these situations, a family member cannot be forced to pay simply because they are next of kin.

Care Home Fees After Death: What Happens?

This is one of the most common and most stressful questions families face, often at the worst possible time.

In short: any outstanding care home fees become a debt of the deceased’s estate, not a personal debt of the next of kin. The executor or administrator of the estate is responsible for settling outstanding fees from the estate’s assets before any inheritance is distributed to beneficiaries.

“The period right after a parent dies is hard enough without an invoice landing on the doormat. What we always tell families is: breathe. That bill is the estate’s responsibility, not yours personally, and there is a proper process to follow.” — Manjas Lidder

How Long Can a Care Home or Council Claim Fees After Death?

There is no single fixed statutory deadline, but in practice:

• Care providers typically invoice the estate promptly, often within weeks
• Local authorities can pursue a debt for a number of years after death, though they are expected to act within a reasonable timeframe
• Executors have a legal duty to settle debts before distributing the estate, and can be personally liable if they distribute assets while knowingly ignoring a known debt

What If the Money Runs Out?

If a resident’s savings are close to exhausting the local authority’s upper threshold, it’s worth contacting the local authority for a financial reassessment sooner rather than later. Waiting until funds have completely run out can create a gap in funding and delay support.

The 2026/27 Care Home Fees Means Test Explained

For the 2026 to 2027 financial year in England, the capital thresholds for local authority-funded care remain unchanged:

• Upper capital limit: £23,250 — above this, the resident is expected to fund their own care in full
• Lower capital limit: £14,250 — below this, only income is taken into account; capital is disregarded
• Between the two limits — the resident contributes a tariff income of £1 per week for every £250 of capital above £14,250

These thresholds have been frozen since 2010 in cash terms, meaning more families reach the upper limit sooner than they might expect, simply through inflation and rising property values.

“The thresholds haven’t moved in well over a decade. Every year we see more families who assumed they’d qualify for council support, only to find out their parent’s modest savings tip them just over the line.” — Manjas Lidder

What Counts Towards the Means Test?

• Savings, investments, and cash
• Property, if the person owns their home and no qualifying relative continues to live there
• A proportion of jointly held capital

What Doesn’t Count?

• Personal possessions
• Life insurance policies
• The value of the home during the first 12 weeks of a permanent placement (the “12-week property disregard”)

Deprivation of Assets: Why This Matters for Families

Deliberately giving away money, property, or other assets to avoid paying care fees is known as deprivation of assets. If a local authority believes this has happened, it can treat the person as still owning that asset for means-testing purposes, known as “notional capital.”

• The test is whether avoiding care costs was a significant motivation for the transfer, not necessarily the only reason
• There is no fixed time limit; a transfer made years before care was needed can still be investigated if avoiding fees appears to have been a motivation
• If deprivation is found and the person cannot pay, the local authority can, in some cases, pursue the person who received the asset for repayment

“We always encourage families to get independent financial and legal advice before making any decisions about gifting property or savings. What feels like sensible planning can sometimes be interpreted very differently by a local authority.” — Manjas Lidder

Does Power of Attorney Make You Responsible for Fees?

Holding a lasting power of attorney does not make you personally liable for someone’s care fees. Your role is to manage their money in their best interests, which includes paying for their care from their own funds.

However, an attorney who misuses funds, for example by transferring the resident’s money to themselves rather than paying care costs, can be held personally accountable. Read our guide on how to change your lasting power of attorney for more on setting this up correctly.

What About the Family Home?

Many families worry that a parent’s house will automatically be sold to pay for care. In practice:

• The home is only included in the means test if the person moves into permanent residential care and no qualifying relative remains living there
• If a spouse, partner, or certain other dependants continue to live in the property, its value is usually disregarded
• For the first 12 weeks of permanent care, the property’s value is disregarded regardless, giving families time to plan
• A Deferred Payment Agreement can allow the local authority to cover costs upfront, recovering the money later from the sale of the property, so a rushed sale isn’t usually necessary

“Selling the family home under pressure is rarely the right first move, and it’s rarely the only option either. A deferred payment agreement exists precisely so families aren’t forced into a decision they’ll regret.” — Manjas Lidder

Frequently Asked Questions

Are next of kin responsible for care home fees in the UK? No. The resident is responsible for their own fees. Next of kin only become liable if they’ve signed a top-up agreement, misused power of attorney funds, or been involved in deliberate deprivation of assets.

How long after death can a care home or council claim fees? There’s no single statutory cut-off, but outstanding fees are a debt of the estate and are typically pursued within a reasonable period after death, often within a few years. Executors should settle known debts before distributing the estate.

Do I have to sell my parent’s house to pay for care home fees? Not necessarily, and not immediately. The 12-week property disregard, and options like a Deferred Payment Agreement, give families time before any sale needs to be considered.

What happens if care home fees can’t be paid? Contact the local authority for a financial reassessment as savings approach the upper threshold. Local authorities have a duty to ensure ongoing care needs are met, even if funding arrangements need to change.

Can the council reclaim care home fees from an inheritance? The council cannot claim fees from an inheritance a family member receives from someone else. It can, however, recover unpaid fees owed by the deceased resident from their own estate before that estate is distributed.

How Lidder Care Can Help

At Lidder Care, we know that questions about care home fees often arrive at an already difficult time, whether you’re planning ahead or dealing with a bereavement. We’re happy to talk through your situation and point you towards the right next steps.

Care Homes:

• Newgate Lodge Care Home in Mansfield
• Lowmoor Nursing Home in Mansfield

Both homes hold a CQC Good rating and provide person-centred care in comfortable, welcoming environments.

Funding guidance: Read more on who pays for elderly care, paying for care homes in Mansfield, and care home top-up fees.

Contact us: Phone: 01623 622 322 Visit our contact page

This article is intended as general guidance and does not constitute legal or financial advice. For advice specific to your circumstances, we’d always recommend speaking to an independent financial adviser or solicitor alongside your conversations with us.