Quick answer
Next of kin are generally not legally responsible for care home fees in England and Wales, though the resident or their estate typically must cover costs. Local authorities may provide funding for those with assets below £23,250, whilst those with assets exceeding this threshold typically contribute towards fees on a sliding scale. However, if a resident lacks mental capacity, their attorney or court-appointed deputy may need to manage finances from their estate. Care home fees can vary significantly depending on the level of care required, location, and whether the facility is privately run or council-contracted. This guide explains next of kin responsibilities in 2026/27, how local authority funding thresholds apply to care home costs, and when attorneys or deputies become involved in managing resident finances.
Last reviewed: 24 May 2026 by the MP Estate Planning editorial team. Jurisdiction: England and Wales. Scotland and Northern Ireland have different probate and intestacy rules; the IHT thresholds are UK-wide.
Three rule changes you may need to consider (2026/27)
1. Pensions become subject to IHT from 6 April 2027. Most unused defined-contribution pension pots currently sit outside the estate for IHT — that ends on 6 April 2027 (gov.uk policy paper). HMRC estimates around 10,500 estates will face IHT for the first time as a result.
2. Business and agricultural property reliefs capped at £2.5m per person from 6 April 2026. Above the cap, only 50% relief applies — effective IHT of 20%. AIM shares dropped to 50% relief and do not use the £2.5m allowance (Saffery — APR/BPR reforms).
3. The NRB, RNRB and £2m taper threshold are frozen until 5 April 2031 following the 2024 and 2025 Budgets (gov.uk — NRB and RNRB freeze). With inflation, more estates will be pulled into IHT each year — a process commonly called “fiscal drag.”
Are next of kin responsible for care home fees in the UK? The short answer is generally no. Next of kin typically refers to a person’s closest living relative. When it comes to care home fees, understanding who pays can be complex. While the next of kin is not usually legally obligated to cover these costs, there are exceptions and specific circumstances to consider. In this guide, we’ll explore the ins and outs of care home fees and clarify the responsibilities surrounding them, ensuring you have a clear understanding of what to expect.
Understanding Care Home Fees and Responsibilities
Breakdown of Typical Care Home Fee Structures
When it comes to care home fees in the UK, it can be a bit confusing. Typically, these fees cover everything from accommodation to daily living support like meals and personal care. Depending on the care home and the level of care needed, the costs can vary widely. Some care homes might also charge extra for additional services, such as special activities or outings.
Who Is Responsible for Care Home Fees?
One of the biggest questions is: “Are next of kin responsible for care home fees?” The short answer is no, but let’s dive deeper. In most cases, the responsibility for paying care home fees falls on the resident themselves. This means the person receiving care is expected to pay for their own fees, often using their assets, such as savings, pensions, or even selling their house.
However, if the resident can’t pay, things can get tricky. Sometimes, their estate might cover the costs after they’ve passed away. In rare cases, if a spouse or guarantor has signed an agreement to cover the fees, they might be responsible. But generally, children or other relatives are not automatically liable for these costs.
Common Misconceptions
There’s a common misconception that family members are always responsible for care home fees. This isn’t true. While family members often assist with the process, like helping to find the right home or dealing with the paperwork, they aren’t usually on the hook for the cost.
If you’re worried about future costs, there are options like deferred payment agreements, which allow you to delay paying the fees until a later date, usually when the resident’s house is sold.
Understanding these responsibilities can help you make better decisions for your loved ones. If you have more questions, it’s always a good idea to seek professional advice to get answers tailored to your specific situation.
Legal Obligations of Next of Kin
Lack of Legal Obligation
Many people wonder, are next of kin responsible for care home fees in the UK? The simple answer is no, they are not automatically responsible. When a loved one moves into a care home, the main responsibility for paying the fees lies with the person living in the home or their estate.
However, there are some exceptions. For example, if a next of kin signs an agreement as a guarantor, they might be held accountable for the fees. But generally, just being a relative does not make you legally responsible.
Specific Circumstances and Exceptions
While it’s true that next of kin aren’t usually responsible, there are some situations where they could be. If the resident has a spouse or partner, their combined assets may be considered for payment. Also, if the resident’s assets are tied up in a house that needs to be sold, the next of kin might have to handle the sale process.
Misconceptions about Next of Kin Liability
Common Myths
There are many misconceptions about next of kin liability. One common myth is that if you are a child or step-child of a resident, you are automatically responsible for their fees. This is not true. Unless you have signed a legal agreement to be responsible, you are not liable.
Another misunderstanding is that the care home can force you to pay if your loved one cannot. This is also false. The care home can only claim payment from the resident or their estate.
Clarifying Misunderstandings
People often assume that they must use their own assets to cover care home costs if their loved one runs out of money. This is incorrect. The local authority may step in to cover costs if the resident’s funds are depleted, and the next of kin’s finances are generally not involved.
In summary, while there are some specific circumstances where a next of kin might be responsible, these are exceptions rather than the rule. Understanding these details can help you navigate the often confusing world of care home fees.
Financial Assessments and Contributions
How Means Tests Work
In the UK, when someone needs to move into a care home, a financial assessment or “means test” is conducted. This test helps determine how much the person should pay for their care. The means test looks at the person’s income, savings, and assets, including their home. If they have more money, they might have to pay more for their care. If they have less, they might get more help from the government.
Family Contributions and Their Implications
Sometimes, family members might need to help pay for a loved one’s care. This can include children, spouses, or other relatives. It’s important to know that in most cases, the next of kin are not automatically responsible for paying care home fees. However, they might choose to help to ensure their family member gets the best care possible. Helping out can impact their own finances, so it’s a good idea to think carefully and maybe even get some advice.
Third-Party Top-Up Fees
What Are Third-Party Top-Up Fees?
These are extra fees that someone might have to pay if they want their family member to stay in a more expensive care home. For example, if the government only covers a basic rate but the family wants a nicer home, they might have to pay the difference. This extra money is called a third-party top-up fee.
Impact on Next of Kin
If a family decides to pay these extra fees, it usually comes from the next of kin. It’s important to understand that this is a choice, not a requirement. But it can sometimes put financial pressure on the family. So, it’s crucial to discuss and agree on how these fees will be handled before making any decisions.
In summary, while the next of kin in the UK are generally not automatically responsible for care home fees, they might need to help out financially in some cases. Understanding how financial assessments, family contributions, and third-party top-up fees work can help families plan better for the future.
Protecting Family Assets
Legal Avenues to Safeguard Assets
When it comes to protecting family assets in the UK, understanding your options is crucial. One common concern is whether next of kin are responsible for care home fees. Let’s clear this up.
First, it’s important to know that next of kin are generally not responsible for paying the care home fees of their loved ones. The responsibility lies with the person receiving care and their estate. However, there are ways to safeguard assets and ensure that care costs don’t eat into your family’s wealth.
Trusts and Joint Ownership
One effective method is setting up a trust. A trust can hold assets like a house or savings, keeping them out of reach if care home fees become a concern. For example, if you place your home in a trust, it won’t be counted as part of your estate when calculating care costs.
Another strategy is joint ownership. By owning property jointly with your spouse or children, only your share of the property is considered when assessing care home fees. This can significantly reduce the amount you might need to pay.
Deferred Payment Agreements
If you need immediate care but don’t want to sell your home, you can consider a deferred payment agreement. This allows the local council to cover your care costs initially, with the amount being repaid from your estate later. This way, you can keep your home while ensuring your care needs are met.
Misconceptions and Additional Advice
There are many misconceptions about care home fees. Some believe they must sell their home immediately, but there are often other options available. It’s always wise to seek professional advice to explore all avenues and find the best solution for your specific situation.
In short, while next of kin aren’t typically responsible for care home fees, planning ahead with trusts, joint ownership, and deferred payment agreements can help protect your family assets and provide peace of mind.
Navigating the Legal Landscape
Overview of Relevant Laws and Regulations
When it comes to care home fees in the UK, it’s important to understand what the law says. Many people are worried about whether their next of kin will have to pay these fees if they can’t. The good news is, in most cases, next of kin are not legally responsible for the care home fees. The responsibility for paying these fees usually falls on the person receiving care.
How to Seek Legal Advice and Support
If you’re uncertain about your situation, it’s crucial to get legal advice. You can speak to a lawyer who specializes in care home issues or reach out to organizations that offer free advice. For example, Age UK and Citizens Advice can provide you with information and support.
Understanding the Responsibilities
There are some exceptions where a next of kin might be involved. If you have signed a contract as a guarantor or have a joint agreement, you might be responsible. Always read any agreements carefully before signing. If you’re unsure, seek legal advice.
What Happens to Assets and Estate
If the person in care has assets, like a house, these might be used to pay for care home fees. However, there are laws in place to protect the spouse and family members. For example, the value of the house may not be counted if a spouse or relative still lives there.
Future Planning
Planning ahead can avoid difficulties. Consider talking to a financial advisor about funding options like deferred payments. This means you can delay paying the fees until a later date, giving you time to sort things out.
Common Misconceptions
Many people think they have to sell their house immediately, but this is often a misconception. You have options and can get help to navigate through your choices.
By understanding these legalities, you can make informed decisions and ensure your loved ones get the care they need without unnecessary stress.
Taking the Next Step: Secure Your Family’s Future
Understanding your obligations regarding care home fees is crucial, but safeguarding your assets is equally important. If you’re worried about protecting your family’s wealth, now is the time to act. At MP Estate Planning, we specialize in comprehensive strategies tailored to families, homeowners, and high net worth individuals in England and Wales. Don’t leave your financial future to chance. Book a free consultation with Our team team today to explore your options and secure your peace of mind.
What Happens to Care Home Fees After Death — and When Money Runs Out
Two of the most pressing concerns families raise with our team are what happens if a care home resident outlives their savings, and who is responsible for any outstanding fees once the resident has passed away. Both questions sit squarely within estate planning territory, yet they are rarely addressed together in a joined-up way.
When a Resident’s Funds Run Out Mid-Placement
If a self-funding resident’s capital falls to the means-test threshold — currently £23,250 in England — the local authority is generally obliged to step in and fund the shortfall, provided the resident meets the relevant eligibility criteria under the Care Act 2014. In practice, this means the council will conduct a financial assessment and, in most cases, begin contributing to fees rather than the resident being required to leave their placement. However, the local authority is only obliged to fund care at a rate it considers reasonable for the area. If the care home charges above that rate, a voluntary third-party top-up may be needed from a family member or other contributor — though crucially, that obligation must never be imposed on the resident themselves.
Families are sometimes caught off guard when this transition occurs, particularly if the care home’s fees of £1,200 to £1,500 per week (Laing Buisson, 2024) have been depleting capital faster than anticipated. Early estate planning — ideally before a care need arises — can help families understand the likely timeline to means-test level and structure affairs accordingly. Further guidance on the local authority’s duty to arrange care is set out on GOV.UK’s Care and Support Statutory Guidance.
What Happens to Unpaid Care Home Fees After Death
When a care home resident dies, any outstanding fees they owe do not automatically transfer to next of kin. In most cases, unpaid balances become a debt of the deceased’s estate, ranking alongside other unsecured creditors and settled before any inheritance is distributed. The executor or administrator of the estate is responsible for identifying and discharging these debts from estate assets — they are not personally liable unless they have signed a personal guarantee, which our team would always recommend families scrutinise carefully before countersigning any care home admission agreement.
Where the estate is insolvent — meaning debts exceed assets — the order in which debts are paid is governed by the Administration of Insolvent Estates of Deceased Persons Order 1986. In such circumstances, beneficiaries would typically receive nothing, but family members would not be pursued for the shortfall simply by virtue of their relationship to the deceased.
Local Authority Recovery and Property
One area where the situation is more nuanced involves the deceased’s property. If a Deferred Payment Agreement was in place — an arrangement under which the local authority funded care on the understanding it would recover costs from the eventual sale of the resident’s home — that debt is recoverable from the estate after death. This is a legal charge registered against the property, not a liability imposed on family members, but it does reduce the net estate available to beneficiaries. Understanding how deferred payment agreements interact with estate planning structures, including property trusts and jointly owned assets, is an area where early professional guidance may preserve significantly more family wealth than reacting after a care placement has already begun.
Common Questions About Care Home Fees and Family Responsibility
What happens when the money runs out in a care home?
When a self-funding resident’s savings fall to £23,250 in England, the local authority is generally required to carry out a financial assessment and begin funding eligible care costs under the Care Act 2014. The resident will not ordinarily be asked to leave their placement solely because their funds have depleted, though the council will only pay up to its usual rate for the area. If the chosen care home charges more, a voluntary third-party top-up agreement may be needed. Families should be aware that average care home costs in the UK currently sit between £1,200 and £1,500 per week (Laing Buisson, 2024), meaning capital can erode more quickly than many anticipate.
What happens to unpaid nursing home bills after death?
Unpaid nursing home fees typically become a debt of the deceased’s estate and must be settled by the executor before any inheritance is distributed to beneficiaries. Next of kin are not personally responsible for these debts unless they have independently guaranteed them in writing. Where a Deferred Payment Agreement was registered as a legal charge against the property, the local authority may recover its contribution from the proceeds of the property sale after death.
Is power of attorney responsible for nursing home bills in the UK?
Holding a Lasting Power of Attorney (LPA) for property and financial affairs does not make the attorney personally liable for the care home fees of the person they are acting for. The attorney’s role is to manage the donor’s finances on behalf of the donor — paying fees from the donor’s own funds — not to assume personal financial responsibility. An attorney who misuses funds or fails to meet care fees from available assets may face scrutiny from the Office of the Public Guardian, but the debt itself remains that of the donor, and subsequently their estate.
Do dementia sufferers have to pay care home fees in the UK?
In England and Wales, a diagnosis of dementia does not in itself entitle a person to free care. Funding eligibility is assessed through the means test and, separately, through an NHS Continuing Healthcare (CHC) assessment, which examines the nature, complexity, and intensity of a person’s care needs rather than their diagnosis. Some people living with advanced dementia may qualify for CHC funding — meaning the NHS meets the full cost — but this is assessed on individual clinical grounds, not automatically granted. Families are encouraged to formally request a CHC assessment if they believe a loved one’s primary need is health-related, as this is an area where many eligible individuals are not assessed.
How much can I have in the bank before I have to pay for care?
In England, the upper capital threshold is currently £23,250. Above this figure, the individual is expected to fund their own care in full. Below this threshold, the local authority will contribute, with the resident paying a reduced contribution based on a sliding scale down to the lower limit of £14,250, below which only income (not capital) is taken into account. In Scotland, the upper capital threshold is higher at £35,000 (2024), and Scotland additionally provides free personal care to eligible adults regardless of means, under the Free Personal and Nursing Care (Scotland) scheme — a significant distinction for those planning across the border. These figures are subject to annual review, and our team recommends verifying current thresholds directly with the relevant local authority or through GOV.UK’s guidance on paying for care in England before making financial decisions.