Power of Attorney and Care Home Fees: Who Can Pay, Deal With the Council, and Sell the House?

27th July 2026

If you’ve searched for Power of Attorney and Care Home Fees, you’re probably already dealing with one of the biggest practical questions families face after a loved one starts to need care. Once care home fees become part of the conversation, people quickly discover there’s far more involved than simply paying regular invoices. Someone may need to speak to the local authority, complete financial assessments, manage pensions, deal with banks and, in some cases, decide whether a property should be sold to support the continuing care. Whether you can legally do those things depends largely on whether a valid LPA is already in place.

Why care funding often becomes complicated

Moving into residential care is rarely something families have planned for years in advance.

It often follows a hospital admission, a fall, worsening dementia or another significant change in someone’s health.

Suddenly there are invoices arriving, assessments to complete and financial decisions that can’t wait to be made.

Many people assume a husband, wife or adult child can simply take over and step in.

Legally, it’s rarely that straightforward.

Banks, investment providers, pension companies and local authorities all need evidence that somebody has authority to act on another person’s behalf before they’ll engage.

Without it, even close family members may find themselves unable to progress important decisions.

Who can legally pay care home fees and speak to the council?

If someone has registered a Property and Financial Affairs LPA, their attorney can usually deal with the financial side of arranging care.

That includes paying care home invoices, speaking with the local authority, managing pensions, dealing with utility companies and communicating with banks and investment providers, where needed.

Attorneys can also complete financial paperwork and provide information requested during means testing.

What they can’t do is simply make decisions based on what suits the rest of the family.

Every decision absolutely must be made in the donor’s best interests.

That principle sits at the heart of every attorney’s legal responsibilities.

At Power of Attorney Online, we regularly hear from families who assumed they could help simply because they were next of kin. It’s often only when the first care home invoice arrives or the council requests financial information that they realise formal legal authority is required to help.

Understanding the local authority financial assessment

If someone may qualify for financial help with care costs, the local authority carries out a financial assessment.

This looks at income, savings, investments and, in some circumstances, property ownership.

An attorney usually completes this process on the donor’s behalf.

They may gather bank statements, pension details, information about savings and evidence of other assets.

Accuracy matters when doing this.

Providing incomplete or misleading information can delay decisions or create unnecessary complications later on.

Attorneys should also remember they are acting as representatives.

They’re not completing the assessment for themselves.

The money always remains the donor’s.

That distinction affects every financial decision throughout the process.

Selling or renting the house to fund care

One of the biggest concerns families have is whether an attorney can sell a property.

In many situations, the answer is yes.

If the donor owns a house and selling it is genuinely in their best interests, a Property and Financial Affairs attorney usually has authority to complete the sale.

Sometimes selling the property allows care fees to be paid without creating financial difficulties elsewhere.

In other cases, renting the property may be a more appropriate option.

The right decision depends on the individual’s circumstances and Attorneys should carefully document why they reached their decision.

Keeping clear records protects both the donor and the attorney if questions are ever raised later by the OPG.

The OPG has powers to investigate attorneys where concerns arise, particularly if large financial transactions appear inconsistent with the donor’s best interests.

Good record keeping is therefore not just a sensible thing to do. It forms part of responsible decision making.

Deferred Payment Agreements explained

Many families worry they will be forced to sell a property immediately.

That’s not always the case.

If certain eligibility criteria are met, a local authority may offer a Deferred Payment Agreement.

This allows some care fees to be paid initially by the council, with repayment usually taking place later when the property is eventually sold.

An attorney can often arrange this on the donor’s behalf.

The agreement is secured against the property, rather like a loan.

Interest and administrative charges may apply, so understanding the terms is important before agreeing to it.

For some families, a Deferred Payment Agreement creates valuable breathing space while longer-term decisions are considered.

What happens if there is no LPA in place?

This is where many families encounter unexpected delays.

If somebody has already lost mental capacity and never made a Property and Financial Affairs LPA, relatives usually can’t access accounts or sell property simply because they’re family.

Instead, they often need to apply to the Court of Protection for deputyship, a process that can take several months.

Meanwhile, care still needs arranging and bills continue arriving.

Financial decisions may have to wait until legal authority is granted.

Sometimes interim arrangements can be made for essential payments, but deputyship is frequently the only long-term solution.

This is one of the strongest reasons many people choose to put an LPA in place before they ever need it.

Deprivation of assets: mistakes attorneys should avoid

One area that regularly causes confusion is deprivation of assets.

This happens when somebody deliberately reduces the value of their estate to avoid paying care fees.

Examples might include giving away large sums of money, transferring property into somebody else’s name or selling valuable assets for less than they are worth.

Attorneys must be especially careful in what they do here.

They can’t simply continue gifts the donor used to make if doing so would significantly affect their finances.

Nor can they move assets into relatives’ names because they believe it will protect an inheritance.

The local authority can examine previous financial decisions during a care funding assessment.

If it concludes assets were deliberately reduced to avoid care costs, those assets may still be treated as belonging to the individual.

An easy way to think about is that Attorneys should always ask themselves one simple question: “Does this genuinely benefit the donor?”

If the answer is uncertain, professional advice is usually sensible before proceeding.

Comparison: LPA versus no LPA when care becomes necessary

Situation	Registered Property & Financial Affairs LPA	No LPA in Place
Pay care home fees	Usually yes	Often delayed until deputyship
Speak with local authority	Yes	Limited authority
Complete financial assessment	Yes	Usually no
Access bank accounts	Yes	Usually no
Sell or rent property	Usually yes, if in donor’s best interests	Court authority usually required
Arrange Deferred Payment Agreement	Usually yes	Often delayed
Choose decision maker	Donor chooses	Court decides

The differences become particularly important when decisions need to be made quickly.

Why planning ahead usually saves families stress

Most families don’t leave arranging an LPA because they are avoiding responsibility.

They simply assume there will be time later.

Unfortunately, illness rarely follows a convenient timetable.

A stroke, serious fall or sudden deterioration in dementia can leave families needing legal authority almost overnight.

Having an LPA already registered allows practical decisions to happen much sooner.

Banks can be contacted, the council can assess finances and care invoices can be paid.

Property decisions can be considered carefully, instead of under pressure.

From our own customer experience, one of the most common reasons people tell us they chose to create an LPA was after seeing another family struggle without one. Those real-life experiences consistently reinforce the same lesson: having authority before it’s needed is far easier than trying to obtain it afterwards.

Frequently asked questions

Can an attorney pay care home fees?

Yes. A Property and Financial Affairs attorney can usually use the donor’s money to pay legitimate care costs, provided they are acting in the donor’s best interests.

Can an attorney sell a house to pay for care?

Often, yes. If selling the property is in the donor’s best interests and the LPA grants the necessary authority, an attorney can usually arrange the sale. They should keep clear records explaining why the decision was made.

Can an attorney give away money to reduce care fees?

Generally, no. Attorneys must not deliberately reduce the donor’s assets to avoid care charges. Doing so could breach their legal duties and create problems with the local authority.

Does next of kin have authority to deal with care home finances?

No. Being next of kin does not automatically give legal authority to access accounts, manage finances or sell property. A registered LPA or deputyship is usually needed.

What if someone loses capacity before making an LPA?

If they no longer have the mental capacity to create an LPA, the usual alternative is an application to the Court of Protection for deputyship. This process is generally longer, more expensive and involves ongoing supervision.

Planning before care is needed gives families more options

Very few people set up an LPA because they know they will need residential care.

Most do it because they want the people they trust to be able to help if life takes an unexpected turn.

Care home funding brings together legal, financial and practical decisions at a time when families are already coping with significant emotional pressure.

A registered Property and Financial Affairs LPA doesn’t remove those challenges, it just makes them much easier to manage.

If you still have mental capacity, creating an LPA now gives you the opportunity to choose who will manage your finances, work with the local authority and make important decisions, if the time ever comes when it’s necessary. That choice belongs to you today. Waiting too long could mean it belongs to the Court of Protection instead.