What happens to care home fees when a resident dies?

CMA guidance is clear: care homes should not charge fees for more than three days after death (sometimes longer with prior agreement to allow for personal belongings to be removed). Some contracts try to charge for the full notice period regardless — this is an unfair term and can be challenged.

Can a care home ask my family to sign as guarantor?

Care homes sometimes ask family members to sign as a financial guarantor. You are under no obligation to do so. Signing as guarantor makes you personally liable for fees if the resident cannot pay. Always seek legal advice before signing — many solicitors will review the contract for a fixed fee.

Is a third-party top-up arrangement legal?

Yes — but only when properly structured. If the local authority is funding placement and the family chooses a more expensive home, a third party can pay the difference. The arrangement must be in writing, sustainable, and reviewed annually. Top-ups demanded for a placement that meets the resident's assessed needs are not lawful.

Can I get out of a care home contract?

Yes. The contract must specify a notice period (commonly 28 days) for the resident to end the arrangement. The home cannot impose unreasonable exit fees or tie-ins. If the home itself is in breach — through poor care, safeguarding failures, or unfair fee increases — you may be able to leave immediately without notice.

Care home contracts — what to check before you sign

Care home contracts are legally binding agreements that govern fees, notice periods, and your relative's rights. Many families sign them under pressure without understanding what they're agreeing to. Knowing what to look for — and what to push back on — can protect your family from significant financial risk.

Last reviewed: 23 April 2026·Reviewed by: CareGuide UK Editorial Team, reviewed by an SRA-regulated care solicitor

Why care home contracts matter

A care home contract is the single most important document your family will sign during the care journey. It governs how much you pay, how fees can change, how either party can end the arrangement, and what happens in difficult situations such as illness or death. Contracts are often presented at a stressful moment with pressure to sign quickly. That is precisely the wrong time to read one for the first time.

What a care home contract must include by law

The Competition and Markets Authority has clear consumer law expectations of UK care home contracts. They must set out the weekly fee, what's included, when and how fees can be reviewed, the notice period, the procedure for handling fees on death, complaints procedures, and any third-party top-up arrangements. Contracts that omit these or use vague language are likely to fail consumer law tests.

The clauses that most often cause problems

Fee increase clauses

Look for how often fees can rise, by how much, and what notice you must be given. Vague phrases like "fees may increase from time to time" are unfair. Insist on a specific cap or formula (e.g. CPI plus a fixed percentage).

Third-party top-up arrangements

Check who pays, when, what happens if the family member cannot pay, and how the top-up can change. Top-ups must be voluntary, sustainable, and properly reviewed.

Fees after death

Many contracts contain unfair terms charging fees for weeks after a resident dies. CMA guidance limits charges to a few days. Strike out any clause demanding more.

Notice periods

Both parties should have equivalent notice rights — usually 28 days. The home should not be able to give the resident a week's notice while requiring four weeks from the family.

What's included and what's an extra

Hairdressing, chiropody, escorts to medical appointments, newspapers, and outings are commonly extras. Get a written list of what counts as an extra and at what price before signing.

Tie-in clauses and deposit terms

Some contracts impose minimum stay periods or non-refundable deposits. These are often unfair and can usually be negotiated away.

What you can negotiate

Almost everything is negotiable, particularly when the home has vacancies. Common wins include removing or capping fee increase clauses, shortening notice periods, capping post-death charges, and getting a clearer breakdown of extras.

When the contract may be unfair or unlawful

Under the Consumer Rights Act 2015, terms that create a significant imbalance to the consumer's detriment are unenforceable. CMA guidance specifically identifies common unfair terms in care home contracts. If you spot one, you can refuse to sign — or sign and challenge it later.

What to do if the home refuses to negotiate

Walk away if you can. If you cannot, sign a covering letter noting the clauses you object to and your interpretation of them. Then take legal advice. A specialist care solicitor can challenge unfair terms, often without going to court.

Fees after death — what happens when a resident dies

Many families are shocked to receive a substantial invoice for care fees covering days or weeks after a resident has died. Whether these post-death charges are legally enforceable depends on what the contract says, the contractual notice period, and whether the room was cleared promptly. CMA guidance is clear that most post-death charges should be limited to a few days — but many contracts try to go much further.

Read the full guide to care home fees after death →

Frequently asked questions

No. Under Competition and Markets Authority guidance, care homes must give clear written notice of any fee change — typically at least 28 days. Increases must be reasonable, justified, and aligned with the contract's stated review mechanism. A sudden, unexplained hike is likely to be unfair under consumer law.