Are Next of Kin Responsible for Care Home Fees?

When is the next of kin responsible for care home fees?

A family member is not usually financially responsible for paying care home fees unless they have specifically agreed to do so. Simply being listed as “next of kin” does not amount to a legal obligation to pay for care.

The person receiving care is generally responsible for their own care home costs. This may be funded through:

• Their own savings or assets
• Local authority funding following a financial assessment
• A combination of the above
• NHS Continuing Healthcare funding

As next of kin, you may be responsible for care home fees if you sign a contract with the care home in your own name. For example, if you sign an agreement accepting liability for fees, the care provider may later argue you are legally responsible for paying.

It is important to check any contract with the care home carefully before signing. If you are signing documents as an attorney under an LPA, make it clear that you are signing on behalf of the person receiving care and not personally accepting liability.

Alternatively, families may sometimes be asked to pay a proportion of the fees, when the amount paid by the Local Authority is not enough to meet the cost of the placement. This is called a “third-party top-up”. The ability of the Local Authority to charge a top-up depends on there being a cheaper, viable alternative available which is not always the case.

Again, you should check any contract carefully before signing and take professional advice if needed.

Do I have to pay for my parent’s care home?

Rules on care home fees do not change just because your parent is in a care home. You are still next of kin, and unless a contract has been signed, children, regardless of age, are not legally required to pay a parent’s care home fees.

If there are disputes over unpaid fees, or if a care home believes someone accepted responsibility under a contract, it may be sensible to seek legal advice.

Paying for care and CHC advice as Lasting Power of Attorney

Acting on behalf of a loved one under a Lasting Power of Attorney can involve making important financial decisions. This often includes arranging care, managing savings and paying ongoing care home costs.

If your relative has assets or savings above the funding threshold, they will need to pay for their own care.

Can LPAs use relative’s savings to pay for care?

Yes. If someone has a valid LPA for Property and Financial Affairs, they can use the donor’s own money to pay for care requirements, including nursing home fees, home care or other support services.

The attorney must always act in the best interests of the person receiving care. This means managing their finances responsibly and ensuring money is used appropriately to meet the level of care required.

If your relative does not have the savings to pay for care, the local council will help. A financial assessment will determine how much the council will contribute.

Alternatively, they may be eligible for Continuing Healthcare funding. If this is the case, it’s important to investigate eligibility fully, as this may avoid using hard-earned savings to pay for care.

Can LPAs use the donor’s savings to pay for CHC advice and appeals?

Yes. In many cases, attorneys can use the donor’s funds to obtain professional advice and representation relating to NHS Continuing Healthcare claims and CHC appeals.

This can include covering costs for:

• Initial CHC assessments
• Advice about eligibility
• Representation during MDT meetings
• Advice on appealing a negative decision
• Representation throughout the CHC Appeal process
• Reclaiming wrongly paid fees retrospectively

Where someone may be eligible for NHS Continuing Healthcare, obtaining professional support can be invaluable, leading to the recovery of substantial care home costs and/or securing ongoing funding.

As long as the spending is reasonable and clearly in the interests of the person receiving care, using their funds to pay for specialist CHC advice is generally acceptable under an LPA.

Farley Dwek offers support with both CHC Initial Assessments and CHC Appeals Representation Services, as well as reviewing care records to understand your chances for a successful appeal.

What happens to outstanding care home fees after death?

Next of kin only have to pay outstanding care home fees after death if they have signed a contract obliging to do so; they do not automatically become responsible after death. This works similarly to your responsibilities when a loved one first moves into care.

Outstanding care home fees after death are usually paid from the deceased person’s estate. This means any unpaid care home costs are typically settled using money, savings or assets left behind by the person who received care.

If there are insufficient funds in the estate, the situation can become more complex. Care providers may attempt to recover debts from the estate during probate. However, relatives are not generally expected to pay the debt personally unless they have accepted legal responsibility.

Some families only discover after death that their relative may have been eligible for NHS Continuing Healthcare funding during their lifetime but were never assessed. Retrospective CHC claims – often called Previously Unassessed Periods of Care (PUPoC) – enable families to seek posthumous assessment, and recover fees already paid.

Continuing Healthcare advice and eligibility

Farley Dwek do not offer financial advice for care home fees. However, we can support individuals who feel their relative or loved one may be eligible for NHS Continuing Healthcare. We provide support with MDTs, CHC Appeals and initial advice.

If you have concerns over how to cover costs for CHC advice, speak to Farley Dwek for a free initial discussion. Our aim is to bring clarity to what can often be a complex and confusing process, helping families understand their options and next steps around CHC eligibility and appeals.