As our loved ones grow older, it’s natural to want the very best for them, especially when it comes to their health and well-being. Yet with increasing demands on families and the rising costs of later-life care, many adult children find themselves asking the same difficult question: “Am I responsible for my parents’ care, and if so, what does that mean financially and legally?”
In this guide, we’ll explain the facts around children’s responsibilities for their parents’ care, including what the law says, how funding is assessed, and the many ways families can provide support without facing financial strain.
Above all, we’re here to provide clarity, compassion and peace of mind, so you can focus on what matters most: ensuring your loved one receives the right care, at the right time, in the place they feel most at home.
Understanding legal and financial responsibility
Many families worry that they may be expected to pay for a parent’s care, but UK law does not place a legal duty on children to cover care costs. The financial responsibility belongs to the person receiving care, unless a signed agreement clearly states otherwise.
It is important to carefully review any care-related documents before providing a signature. Agreeing to take on financial responsibility, such as acting as a guarantor, may result in your own personal liability.
In the absence of such agreements, family members are not legally required to contribute toward the cost of care. That said, many choose to support their loved ones in other meaningful ways, such as assisting with care planning, helping with daily tasks, or contributing voluntarily to improve comfort and quality of life.
How care costs are assessed
To determine how care will be funded, local authorities carry out a financial assessment. This process is designed to understand what the person receiving care can afford to contribute based on their income, savings, and assets.
The assessment begins with a care needs review, which identifies the level of support required. Once care needs are confirmed, a financial review follows. This looks at personal assets such as cash savings, pensions, income from investments, and property ownership.
If the total value of those assets exceeds the set threshold, the individual will be expected to pay for their own care. In England, that threshold is currently set at £23,250. Assets owned by other family members, including adult children, are not included in the review.
In situations where only one parent is moving into care and the other remains in the family home, the value of the home is often not counted. This protects spouses and partners from financial hardship and ensures they can remain in familiar surroundings.
Help with paying care home fees
The cost of care can feel daunting, especially for those who do not qualify for full local authority funding. However, even if your assets or income place you above the funding threshold, there are several forms of support available to help manage care costs more comfortably.
NHS continuing healthcare
For individuals with complex or ongoing health conditions, NHS Continuing Healthcare may be available. This funding is provided to people who are assessed as having a primary health need. If eligible, the NHS will cover the full cost of care, including care home fees.
NHS-funded nursing care
If your care needs include nursing support but you do not qualify for NHS Continuing Healthcare, you may be eligible for NHS-funded nursing care. In this case, the NHS will contribute toward the nursing care provided within a care home, helping to ease overall costs.
Benefits for self-funders
Even if you are funding your care privately, you may still be entitled to financial support. There are Government initiatives that can help cover the costs of care, including:
- Attendance Allowance – Available to people above State Pension age who require additional support due to illness or disability
- Personal Independence Payment (PIP) – For individuals under State Pension age with long-term care needs
- Carer’s Allowance – For family members who provide a certain amount of unpaid care
These benefits can provide extra financial support, helping to reduce the pressure of paying for care independently.
Third-party top-up fees
Sometimes, a preferred care home may charge more than the local authority is willing to pay. In these cases, a top-up fee may be required. This is a voluntary payment made by a family member or third party to cover the difference in cost.
Things to know about top-up fees:
- The local council must offer at least one care home option that does not require a top-up
- A top-up is usually only needed if the chosen care home offers enhanced facilities or services, such as a larger room or private bathroom
- Top-ups should be agreed upon in writing, with full transparency about future increases or conditions
Selling property to pay for care
In some situations, individuals may need to sell their home to pay for ongoing residential care. This can be a difficult decision, and it’s important to explore all options before taking this step.
You may not need to sell your home if:
- You are receiving care at home, not residential care
- You need temporary or respite care
- A spouse, partner or dependent is still living in the home
Each of these scenarios can exempt the value of your property from a financial assessment.
Deferred payment agreements
A Deferred Payment Agreement allows you to delay selling your home by letting the local authority cover your care costs up front. These costs are then repaid later from your estate, often after the home is sold.
To be eligible, you must:
- Have savings and assets below a certain threshold (currently £23,250 in England)
- Own a property that is not occupied by a spouse or dependent
- Pass a formal financial assessment and meet other eligibility criteria
This arrangement can offer peace of mind by protecting your home and giving families more time to plan for the future.
Is deprivation of assets to avoid care costs a good idea?
Some families consider transferring ownership of a home or other assets to their children in an attempt to reduce the amount assessed for care fees. This is known as deliberate deprivation of assets, and while it might seem like a helpful solution, it can lead to serious financial and legal complications.
Local authorities are well aware of this strategy, and they have the right to investigate how and when assets were transferred. If they believe the transfer was made to avoid paying for care, they can still treat you as if you own those assets.
Some of the risks involved with deprivation of assets include:
- The local authority may still charge you for care fees, treating the asset as if it remains in your name
- You lose control over your property, and your children or other recipients could sell it without your consent
- If your children sell the home, they may need to pay capital gains tax because it is not considered their main residence
- Transferring assets too late may result in the move being challenged or disregarded during a financial assessment
- Creating tension or disputes within the family, particularly if circumstances change or financial needs arise unexpectedly
Paying care home fees after your loved one passes away
When a loved one passes away, it can be a deeply emotional time, and the thought of managing financial matters may feel overwhelming. One common concern is what happens to any unpaid care home fees.
In most cases, next of kin are not personally responsible for settling outstanding care costs. Instead, any unpaid fees are usually recovered from the person’s estate. This means the care home or local authority will look to funds left behind, such as savings, property, or other assets, rather than asking family members to pay.
However, there are a few important points to keep in mind:
- You are only liable for the fees if you previously signed a care contract agreeing to take financial responsibility
- Outstanding fees will form part of the estate’s debts, and are typically settled before inheritance is distributed
- If a deferred payment agreement was in place, the local authority will reclaim the funds from the value of the person’s home or other eligible assets, usually within 90 days
- The council may assist with the process, especially where property needs to be sold or other assets must be managed to cover the fees
While these financial matters can be complex, knowing that the burden does not fall directly on family members often brings peace of mind. Seeking advice from a solicitor or care funding expert can help ensure everything is managed smoothly and in accordance with your loved one’s wishes.
A helping hand at home
For 80 years, Prestige Nursing & Care has been trusted by our clients and their families to provide competent and compassionate home care. Our care is focused on improving health and overall well-being, and all in the place people love most – their own homes.
Call us on 0808 239 1525 and our friendly care experts will discuss your care and support needs. You can also fill out our online enquiry form or email info@prestige-nursing.co.uk. We provide impartial guidance and advice so you can make the right choice for you and your family.
