Care Homes Fees

[Sarah Fitzmaurice]

We are selling a property for a lady who has already gone into care. We are acting for daughter as attorney. The Care Home are demanding that we pay them directly her outstanding care fees. I have said that we can’t do that as it would breach rule 3.3 but the care home have said that they have always done this in the past and can’t see what the problem is. The care home fees aren’t even overdue yet so there is no court order. Are we being too cautious?! Thanks

[Nina Bolt]

Personally I agree with you and would not be paying them direct in this case. It is not part of the transaction if it is purely a sale without a court order. I would pay the daughter as the attorney and its for her then to settle the debt.

[Marc Pegg]

Hi Sarah

Pay from what / where, office account? Presumably you will not be in funds until the property is sold in any event.

Are you acting in any other capacity for the client i.e. a trust set up to include strategies to shield assets or otherwise. If you are, you may already be providing a service in connection with the payment of care fees and may not be in breach of the banking rule provision.

Seems a little odd otherwise, I’d tend to agree with you.

Best.
Marc

[Sarah Payton-Dawson]

Had exact issue a few weeks ago and we said no a breach of the rules, you need a written undertaking on file, a fee note/invoice. But as a rule the money has to go to the deputy and they pay directly. We have now told clients this is the rule.

[Lisa Burr]

You are right to be cautious. The care home has no authority to require payment directly from client account and paying them simply on request risks breaching Rule 3.3

Unless you have clear written authority from the attorney on behalf of the donor and are satisfied the payment is properly due and in the client’s best interests, you should not make the payment directly.

The safer approach is to complete the sale, account to the attorney and allow them to settle the care fees. If the care home require payment, they should pursue it via the attorney.

You may also wish to confirm whether there is an LPA or Deputyship in place, as this can affect how authority is evidenced.

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