The law on care funding states that those people with assets over £23,250, which includes the value of property, are not eligible for any state help regarding their care fees. Those people with assets worth less than £14,250 will have all their fees paid for by the state, whilst those with assets worth between £14,250 and £23,250 will be liable to pay a contribution towards the cost of care.

There are now a number of ways of meeting care costs, even for those whose assets exceed the £23,250 limit, such as annuities, so those affected may still be in a position to benefit from residential care for the rest of their lives and will still be able to leave some inheritance for their loved ones when they die. Those arranging their affairs efficiently are improving their chances of a better outcome, and it is preferable to sort out their affairs while they are relatively fit and healthy rather than waiting until their condition deteriorates.

Gifts to avoid care fees can be made but have strict criteria as does the disposal of property to avoid paying for care home fees.

If the person requiring care is no longer able to handle their own affairs the family will be able to assist in the form of a Lasting Power of Attorney where the person who requires care gives permission for one or more people to act on their behalf, by making decisions regarding their property and their financial affairs. This can only happen if the donor, as they are known, has full mental capacity at the time the power is granted. Lasting Power of Attorney comes in two types, property and financial affairs is one and the other is health and welfare.

If no Power of Attorney exists and the potential donor has already lost their mental capacity then an application has to be made to the Court of Protection for the appointment of a deputy, who must be able to comply with five statutory principles which are laid out in the Mental Capacity Act 2005. The deputies are assessed by the Office of the Public Guardian.