Care Home Fees After Death: Who Pays and How to Reclaim

The care home's final invoice is addressed to the executor or administrator of the estate. The estate pays it, not the family.

Family members are not personally responsible for care home fees. There are two exceptions:

• You signed a third-party top-up agreement: If you agreed in writing to pay extra on top of what the local authority funded, that obligation continues until the date of death (and possibly a short period afterwards, depending on the contract)
• You signed as guarantor for the full fees: If you personally guaranteed the care home fees, the care home can pursue you for any outstanding balance the estate cannot cover

If you did not sign either of these agreements, you have no personal liability. Do not let a care home or debt collector tell you otherwise.

The care home will issue a final invoice covering fees up to the date of death, plus any post-death charges allowed under the contract.

The Competition and Markets Authority (CMA) has issued guidance on post-death charging. Care homes should follow one of these approaches:

• A flat rate of up to 3 days after death
• A daily rate for up to 10 days after death

Key points to check on the final invoice:

• Fees should not continue after a new resident moves into the room
• Storage charges for personal belongings must be reasonable and specified in the contract
• The contract should state the post-death charging period clearly
• Any charges beyond what the contract allows can be disputed

If the invoice seems too high, compare it carefully against the original contract. For guidance on handling personal items left at the care home, see our guide on personal belongings after death.

Understanding how the person's care was funded is essential, because it affects what the estate owes and whether you can reclaim anything.

Self-funding

If the person's assets were above the upper capital threshold, they paid for their own care in full. The thresholds differ across the UK:

• England: £23,250
• Scotland: £35,000
• Wales: £50,000
• Northern Ireland: £23,250

If the person's assets fell below this threshold during their time in care, they should have been reassessed for local authority funding. If this did not happen, the estate may be owed a refund for the period when the person was paying more than they should have been.

Local authority funded

If the person's assets were below the threshold, the local authority contributed to or fully covered their care fees. The local authority pays the care home directly, though the resident may still contribute from their income (such as their state pension). The executor should check with the local authority whether any final adjustments are needed.

Deferred Payment Agreements

A Deferred Payment Agreement (DPA) allows someone to use the value of their home to pay care fees later, rather than selling the property immediately. The local authority pays the care home and places a legal charge on the property.

After death, the executor is typically expected to repay the DPA within 90 days, or to demonstrate that repayment steps are underway (for example, by marketing the property for sale). Contact the local authority as soon as possible to discuss the repayment process. Interest may accrue on the deferred amount, so prompt action is important.

NHS Continuing Healthcare (CHC)

NHS Continuing Healthcare is a package of care funded entirely by the NHS. If someone has a "primary health need" - meaning their main reason for being in care is a health condition rather than a social care need - the NHS pays 100% of their care fees.

CHC is not means-tested. It does not matter how much money or property the person had. If they qualified, the NHS should have been paying for their care.

Many people who should have qualified for CHC were never assessed, or were assessed and wrongly found ineligible. This is one of the most significant potential refund claims for executors.

If the person who died was never assessed for CHC, or was assessed and found ineligible, the executor can make a retrospective claim. This can result in a full refund of all care fees paid, plus interest.

Key facts about retrospective CHC claims:

• Claims can be made for care received after 1 April 2012
• There is no formal deadline for making a post-2012 claim
• If the claim succeeds, the estate can recover 100% of care costs paid during the relevant period
• Interest is paid at the Retail Price Index (RPI) rate
• In England, contact the local Integrated Care Board (ICB) to begin the process
• If the ICB refuses the claim, you can appeal to the NHS Continuing Healthcare team, and ultimately to the Parliamentary and Health Service Ombudsman

Specialist solicitors handle CHC claims on a no-win-no-fee basis. This can be worthwhile if the person was in care for several years and paying substantial fees. Refunds of £50,000 to £200,000 or more are not unusual in successful cases.

Even if someone did not qualify for full CHC, they may have been entitled to Funded Nursing Care. This is a contribution from the NHS towards the cost of nursing care provided by a registered nurse in the care home.

The FNC rates for 2025/26 are:

• Standard rate: £254.06 per week (rising to £267.68 per week from April 2026)
• Higher rate: £349.50 per week (for people with more complex nursing needs)

FNC is paid directly to the care home by the NHS. Check the care home invoices to confirm that FNC was being applied. If it was not, the estate may be able to reclaim the difference.

Scotland has a different system. Since 2002, personal care has been free for people aged 65 and over. This was extended to all adults from April 2019 under Frank's Law.

The 2025 rates are:

• Personal care: £254.60 per week
• Nursing care: £114.55 per week

These amounts are paid by the local authority directly to the care home. The resident (or their estate) is only responsible for accommodation and food costs, sometimes called "hotel costs". If the person was paying for personal care that should have been free, the estate may be entitled to a refund.

There are several situations where the estate may be entitled to a refund or where fees were charged incorrectly:

• Never assessed for CHC: The person had significant health needs but was never assessed for NHS Continuing Healthcare
• Assessed but wrongly found ineligible: The person was assessed but the decision was incorrect or the assessment was incomplete
• Assets fell below the threshold: The person was self-funding but their assets dropped below the capital threshold, and they were not reassessed for local authority support
• Care home overcharged: The care home charged more than the contract specified, or applied unreasonable post-death charges
• FNC not applied: The person was in a nursing home but Funded Nursing Care was not being deducted from the fees
• Scotland - personal care not free: A Scottish resident was being charged for personal care that should have been provided free

In any of these situations, gather the care home contract, invoices, and any assessment paperwork. Contact the relevant authority (ICB, local authority, or NHS Scotland) to raise the issue.

Immediately after the death

• Request an itemised final invoice from the care home
• Check the invoice against the original care home contract
• Note the post-death charging period and confirm it matches the contract
• Do not accept personal liability for fees unless you signed a guarantee or top-up agreement

Within the first month

• Check whether the person was ever assessed for NHS Continuing Healthcare
• Check whether Funded Nursing Care (FNC) was being applied to the invoices
• Contact the local authority to discuss any Deferred Payment Agreement and repayment timeline
• Check whether a financial reassessment was due (if the person's assets had fallen)

Before settling the estate

• Settle the final care home invoice from the estate funds
• Repay any Deferred Payment Agreement from the property sale proceeds
• Keep detailed records of all payments for the probate accounts
• Note that a CHC claim may take months to resolve - you may need to delay final distribution of the estate

For a full overview of everything executors need to handle, see our guide on executor responsibilities.

For more on how debts are handled after death across the UK, including priority order and insolvent estates, see our dedicated guide.

Related guides that may help:

• When someone dies in a care home - practical steps for the first few days
• How to apply for probate - if you need to administer the estate
• Debt after death - understanding what the estate owes and the priority order
• Inheritance tax - how care fees and debts affect the IHT calculation