When people make a Lasting Power of Attorney (LPA), they are placing enormous trust in another person.
Most attorneys carry out their role honestly and conscientiously. Unfortunately, a small minority abuse that trust, often involving close relatives rather than strangers. That is why choosing the right attorney is one of the most important decisions you will ever make.
What is Financial Abuse?
Financial abuse occurs when someone improperly uses another person’s money, property or assets for their own benefit.
Examples which would land an Attorney in deep trouble include:
- Taking money from bank accounts but not for your benefit.
- Using bank cards without your permission.
- Selling property unnecessarily, or at below market value, especially to their friends or your relatives or themselves.
- Making excessive gifts – only very modest birthday and Christmas gifts may be given, larger gifts will need Court of Protection approval.
- Borrowing money that is never repaid. Under an LPA, a loan would need Court approval.
- Failing to use the donor’s money for their care or wellbeing.
Attorneys have a legal duty to act only in the donor’s best interests. They must keep proper records, keep the donor’s finances separate from their own, and avoid conflicts of interest.
Choosing the Right Attorney
Don’t simply choose your eldest child or the relative who lives nearest.
Instead ask yourself:
- Are they completely trustworthy?
- Are they financially responsible?
- Can they keep accurate records?
- Will they always put my interests first?
- Can they cope with family disagreements?
- Will they seek advice when needed?
Sometimes appointing two attorneys provides additional reassurance because important decisions are less likely to be made in isolation.
Simple Ways to Reduce the Risk
You can help protect yourself by:
- Keeping an up-to-date list of your assets.
- Avoiding giving out bank cards or PIN numbers.
- Registering your LPA before it is needed.
- Reviewing your choice of attorneys regularly.
- Telling close family who your attorneys are.
- Keeping your Will, LPA and important documents somewhere secure.
Warning Signs
Financial abuse often develops gradually.
Look out for:
- Unexplained withdrawals.
- Missing bank statements.
- Unpaid bills despite adequate income.
- Missing valuables.
- Sudden large gifts.
- Property being sold unexpectedly.
- A relative becoming secretive about finances.
- Someone preventing other family members from speaking privately to the donor.
- An attorney refusing to explain financial decisions.
These signs do not automatically mean abuse has occurred, but they should never be ignored.
The Role of the Certificate Provider
Every Lasting Power of Attorney includes an important safeguard known as the Certificate Provider.
Before signing the LPA, the Certificate Provider must be satisfied that the donor:
- understands what they are signing;
- understands the powers they are giving away;
- is making the LPA voluntarily; and
- is not being subjected to fraud or undue pressure.
This safeguard exists to protect vulnerable people and to reduce the risk of financial abuse before the LPA is ever registered.
If You Are Worried
If you suspect that an attorney is abusing their position, don’t assume someone else will deal with it.
Concerns can be reported to the Office of the Public Guardian, which has powers to investigate attorneys, obtain financial records and, where necessary, ask the Court of Protection to remove an attorney. Serious cases may also involve the police or local authority safeguarding teams.
A Final Thought
A Lasting Power of Attorney is one of the best ways to protect yourself if illness or an accident means you cannot manage your own affairs. Choosing the right attorneys and understanding the safeguards built into the system helps ensure that the people you trust today will continue to protect your interests tomorrow.