Money and Legal

For family carers navigating the financial and legal side of caring — often for the first time, often under pressure, often without anyone to guide them through it. This guide is that guide.

The legal and financial side of caring is the part most families leave too late.

Not out of negligence — out of everything else that is happening. The caring itself, the emotional weight, the day-to-day decisions. The paperwork feels like something to deal with later, when things settle down.

But later is often too late. Some of the most important legal and financial steps — particularly around Power of Attorney — can only be taken while your loved one still has the mental capacity to agree to them. Once that window closes, the process becomes significantly harder, slower, and more expensive.

This guide is here to help you act before you need to, not after.

1. Lasting Power of Attorney — the most important step

Lasting Power of Attorney (LPA) is a legal document that gives you — or another trusted person — the authority to make decisions on behalf of your loved one if they lose the ability to make those decisions themselves.

There are two types and you need both:

• Health and Welfare LPA — covers decisions about medical treatment, care, and daily life
• Property and Financial Affairs LPA — covers decisions about money, property, bills, and bank accounts

The single most important thing to understand about LPA is this: it must be set up while your loved one still has mental capacity. If they lose capacity before an LPA is in place, you will need to apply to the Court of Protection to become their deputy instead — a process that is significantly more costly, time-consuming, and stressful.

LPAs are registered through the Office of the Public Guardian. You can complete them yourself online at gov.uk or use a solicitor. The registration fee is £82 per LPA in England and Wales — fee remission is available for people on low incomes.

If your loved one’s capacity is already in question, seek legal advice urgently. A solicitor who specialises in elderly or vulnerable client law can advise on whether capacity still exists and how to proceed.

→ Download the Lasting Power of Attorney guide — free at CarersInfo

2. Managing finances day to day

Even before an LPA is in place, there are practical steps that make managing money easier when someone needs support.

• Third party mandate — allows you to manage a bank account on someone’s behalf. Contact their bank directly to set this up. Available while they still have capacity.
• Direct debits and standing orders — set up bills to be paid automatically so nothing gets missed
• Benefits paid into a managed account — if you have LPA in place, benefits can be paid into an account you manage
• Keep records — keep a clear record of any money you manage on someone else’s behalf. This protects both you and them.

If your loved one is already unable to manage their finances and no LPA is in place, contact the Department for Work and Pensions about becoming an Appointee — a simpler process that allows you to manage their benefits only, without the full scope of an LPA.

→ Download the Managing Finances guide — free at CarersInfo

3. Benefits — what you and your loved one may be entitled to

Billions of pounds of benefits go unclaimed every year in the UK. Family carers are among those most likely to be missing out — not because they don’t need the support, but because the system is complicated and nobody has walked them through it.

For the person being cared for:

• Attendance Allowance — for people over 65 who need help with personal care or supervision. Not means-tested. Does not affect most other benefits. Frequently unclaimed.
• Personal Independence Payment (PIP) — for people under 65 with a long-term health condition or disability affecting daily life or mobility
• Pension Credit — for people over pension age on a low income. One of the most under-claimed benefits in the UK.

For you as a carer:

• Carer’s Allowance — for carers providing 35 or more hours of care per week. Check eligibility carefully as it interacts with other benefits and can affect your State Pension
• Carer’s Credit — protects your National Insurance record if you are not earning while caring
• Universal Credit — if you are on a low income, check whether you are eligible and whether caring affects your entitlement

Use a free benefits calculator such as entitledto.co.uk or Turn2us before making any claims. Both are free, confidential, and take around ten minutes.

→ Download the Benefits Applications guide — free at CarersInfo

4. Attendance Allowance — a closer look

Attendance Allowance deserves its own section because it is one of the most commonly missed benefits for older people — and one of the most straightforward to claim.

It is paid at two rates depending on the level of care needed: £76.70 (lower rate) or £114.60 (higher rate) per week (2026/27 rates). It is not means-tested, does not depend on National Insurance contributions, and does not affect most other benefits. In fact, it can trigger entitlement to other support.

It is for people over 65 who need help with personal care or supervision because of a physical or mental condition. The condition does not need to have been formally diagnosed — what matters is the level of need.

Many families don’t apply because they assume their loved one won’t qualify, or that the process is too complicated. Neither is usually true. The form is long but the guidance is clear, and many organisations — including Age UK and Carers UK — offer free help completing it.

→ Download the Attendance Allowance guide — free at CarersInfo

5. Council Tax reduction

Council Tax reductions for carers and people with certain conditions are another frequently missed entitlement.

Your loved one may be entitled to a 25% discount if they live alone or if all other adults in the household are disregarded for Council Tax purposes. Certain conditions — including severe mental impairment — may mean a person is disregarded entirely, potentially reducing the bill to zero.

As a carer, you may also be disregarded for Council Tax purposes if you provide a significant level of care and meet certain criteria.

Contact your local authority’s Council Tax department to ask about discounts and exemptions. It is a short conversation that could save hundreds of pounds a year.

→ Download the Council Tax Reductions guide — free at CarersInfo

6. Legal protections and financial abuse

Financial abuse — someone taking advantage of a vulnerable person’s money, property, or assets without their knowledge or consent — is more common than most families realise, and it is not always committed by strangers.

Signs to be aware of:

• Unexplained withdrawals or transfers from bank accounts
• Unpaid bills despite having sufficient income
• Sudden changes to wills or financial arrangements
• A person being isolated from family and friends by someone with financial control
• Your loved one seeming fearful or confused about their finances

If you are concerned about financial abuse, contact Adult Social Care at your local authority or call the police if you believe a crime has been committed. The Court of Protection can intervene to protect someone’s financial interests where necessary.

→ Download the Legal Protections guide — free at CarersInfo

7. Estate planning — wills and inheritance

These are conversations most families avoid until they have no choice. But they are far easier — and far kinder — when they happen early, when your loved one can still be part of the discussion.

Key steps to take while your loved one has capacity:

• Ensure they have an up-to-date will that reflects their current wishes
• Discuss preferences for care, living arrangements, and end-of-life wishes — and write them down
• Consider an Advance Decision (living will) which sets out what medical treatments they would or would not want
• Check whether any inheritance planning is worth considering given the current rules around care home funding and the means test threshold

A solicitor who specialises in wills and estate planning can advise on all of these. Many offer a free initial consultation.

→ Download the Estate Planning guide — free at CarersInfo

8. Insurance considerations

A caring situation often changes insurance needs in ways families don’t immediately think about.

• Travel insurance — a pre-existing condition must be declared. Standard travel insurance often won’t cover medical emergencies related to an undeclared condition. Specialist providers exist for people with health conditions.
• Life insurance — worth reviewing if circumstances have significantly changed
• Home insurance — if care equipment is being used at home, or if someone is now living with you, tell your insurer. Non-disclosure can invalidate a claim.
• Car insurance — if your loved one has stopped driving, check whether this affects any policies

→ Download the Insurance Considerations guide — free at CarersInfo

One step at a time

The legal and financial side of caring can feel like a mountain. It isn’t — it’s a series of individual steps, most of which are straightforward once you know what they are and where to start.

If there is one thing to do first, it is this: look into Lasting Power of Attorney if it isn’t already in place. Everything else can be worked through in time. That one cannot wait.

Start there. Then come back for the next step.

All twelve Money and Legal guides are available free at CarersInfo — plain-English, practical, and written for family carers.

→ Access your free guides here

© CarersInfo 2024-2026. This post provides general information and is not a substitute for professional legal or financial advice. Always consult a qualified solicitor or financial advisor for guidance specific to your situation.