The Etruscan lar (lord or hero). Among the Romans lares
were either domestic or public. Domestic lares were the souls of
virtuous ancestors exalted to the rank of protectors. Public lares were the protectors of roads and streets. Domestic lares were
images, like dogs, set behind the “hall” door, or in the lararium or
shrine. Wicked souls became lemures or ghosts that made night hideous.
Penates were the natural powers personified, and their office was to
bring wealth and plenty, rather than to protect and avert danger. (See Fairy.)
Source: Dictionary of Phrase and Fable, E. Cobham Brewer, 1894