LPAs and care home fees
Guidance from Estate Advisory Group
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.
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.
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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