LPAs and care home fees
Guidance from Estate Advisory Group
Written and legally reviewed by Ramani Gill TEP, Solicitor and private client practitioner·Last reviewed 13 August 2026
Care fees are the most common reason a financial LPA is finally used — and the point at which attorneys discover the limits of their powers.
What an attorney can do
- Pay care fees from the donor's income and savings.
- Apply for a local authority financial assessment and NHS continuing healthcare funding.
- Claim Attendance Allowance and check pension credit and council tax reductions.
- Sell or let the donor's home where that is in the donor's best interests.
- Take professional advice on care fee annuities, paid for from the donor's funds.
What an attorney must not do
Do not give the house away
Transferring assets to reduce a care fee assessment is deprivation of assets. The council can assess the donor as if they still owned it, and an attorney who does it is also in breach of their duty. Gifts beyond modest customary amounts need Court of Protection approval.
Where the health LPA matters
The decision about whether the donor moves into care, and which home, sits with the health and welfare LPA — not the financial one. Families with only a financial LPA can pay the bill but have no formal say in the placement. It is the clearest argument for making both.
A worked example
Barbara, 84, needs residential care after a fall. Her daughter Karen, her financial attorney, arranges the local authority financial assessment, which finds Barbara's savings are above the threshold, so she is a self-funder. Karen sells Barbara's bungalow, as agreed with Barbara's other children, and places the proceeds to cover fees while investing the rest for income. Because Karen also holds the health and welfare LPA, she chose the care home itself, in line with Barbara's stated preference to stay near her old street.
The financial assessment and thresholds
| Capital | Who pays |
|---|---|
| Above £23,250 (England, 2024/25 upper threshold) | Self-funded |
| Between the lower and upper thresholds | Means-tested contribution |
| Below the lower threshold (£14,250 in England) | Local authority funds care, subject to income |
Thresholds are set nationally and reviewed periodically — check current figures with the local authority or see NHS continuing healthcare if the donor has significant health needs, which is funded differently and is not means-tested.
Keeping records
Document every care fee decision
Keep invoices, the financial assessment letter, and a note of why any property sale or annuity was chosen. See attorney record keeping — the OPG can ask for this if a family member raises a concern.
Common questions
Can attorneys refuse to sell the home?
They must act in the donor's best interests. A preference to stay at home should be weighed, but if fees cannot otherwise be paid a sale may be unavoidable.
Does an LPA protect assets from care fees?
No. It gives someone authority to manage the money, not to shelter it.
Can an attorney claim NHS continuing healthcare?
Yes, an attorney can request an assessment for NHS continuing healthcare, which is fully funded and not means-tested, where the donor has a primary health need.
What if siblings disagree about selling the family home?
The attorney named in the LPA decides, in the donor's best interests, after consulting others where practical — see disagreements between attorneys.
Read next
Where this fits
This page is part of Parents, couples and capacity. The pages below take it further.
- Make an LPA online
The whole journey end to end: questions, documents, signing and registration.
- What an LPA costs in 2026
Our £49 and £79 prices, the £92 OPG registration fee, and solicitor comparisons.
Review and sources
Reviewed by Ramani Gill TEP, Solicitor and private client practitioner. Last reviewed 13 August 2026. We recheck fees, forms and Office of the Public Guardian guidance whenever they change — see our editorial policy.
Official sources
Helping a parent or partner?
They make the decisions and sign, you can do all the paperwork. Start with the free capacity check.
The Office of the Public Guardian charges a separate £92 to register each LPA.
This is general information about how Lasting Powers of Attorney work in England and Wales. It is not legal advice about your situation. What we do and do not do.
Published by Estate Advisory Group