When someone who has been in a care home dies, their estate may owe outstanding fees — or be entitled to a refund. This guide covers care home debts, deferred payment agreements, deprivation of assets, and NHS Continuing Healthcare.
This guide is part of ProbateHelp's Support & Benefits guide cluster. Estimated reading time: 18 min.
Yes. Outstanding care home fees are a debt of the estate and should be paid before beneficiaries receive distributions. If the estate is insolvent, pause distributions and follow the statutory debt order rather than choosing which creditor to pay first.
Yes. Care home fees owed at the date of death are a debt of the estate and are deductible from the gross estate value for IHT purposes. This includes any outstanding fees to the care home and any amounts owed under a deferred payment agreement. Keep documentation of all care-related debts.
Not if you have not personally guaranteed the fees and you deal with the estate properly. An executor can become personally exposed if they distribute the estate before paying known debts, or ignore a valid creditor claim.
If the estate is insolvent, care home fees are paid in the statutory order of priority. They usually rank as an unsecured debt, so do not distribute the estate or choose creditors informally without advice.
Contact the local authority adult social care team for the area where the deceased lived. They should hold DPA records. You can also check the Land Registry title for the property, which may show a registered charge.
Yes. Ask the care home for a final account and challenge any unexplained charges in writing. If the issue is about NHS Continuing Healthcare, request the care records and contact the relevant Integrated Care Board about a retrospective review.