Could an Attorney be misusing their powers? A guide to concerns about a Lasting Power of Attorney

What is a Property and Financial Affairs LPA?

A Lasting Power of Attorney ("LPA") is a legal document allowing an individual (the donor) to appoint one or more attorneys to make decisions on their behalf.

A Property and Financial Affairs LPA gives an attorney the authority to deal with matters such as bank accounts, investments, property and payment of bills. The role places the attorney in a position of significant trust. Attorneys are required to act in the donor's best interests at all times, keep the donor's finances separate from their own and avoid conflicts of interest wherever possible.

The appointment of an attorney does not transfer ownership of the donor's assets to the attorney. The attorney is simply entrusted to manage those assets for the benefit of the donor. A donor does not need to have lost capacity for the attorney to act under an LPA. 

Whilst the vast majority of attorneys carry out their duties diligently and honestly, the role can create opportunities for financial abuse where an attorney exercises considerable control over a vulnerable person's affairs.

The Harcourt Family's concerns about great aunt Ida

The Harcourt family is a fictional family created for the purposes of our regular series. You can read more about the family's succession planning journey here.

Eleanor Harcourt has a great aunt, Ida Cossington. Ida is 95 years old, has never married and has no children.

Ida lives alone in her home, Bowside House. Having enjoyed a successful career as a retail director for a luxury brand, she has remained fiercely independent throughout her retirement. Although her great niece Eleanor visits when she can, she leads a busy life and is unable to provide regular day-to-day support.

Ida has become increasingly reliant upon others, including a local woman, Louise Wood, who has become heavily involved in her affairs. Louise first met Ida through a neighbour and over the last two years, has assisted with shopping, household chores, collecting prescriptions and managing day-to-day finances. Louise has access to Ida's online banking and retains possession of Ida's bank cards to assist with purchases on her behalf.

More recently, Louise has been appointed as Ida's attorney under a Lasting Power of Attorney for Property and Financial Affairs.

Initially, Richard and Eleanor were reassured that Ida had support available close to home. However, they have started to become uncomfortable with the extent of Louise's involvement in Ida's financial affairs and are concerned about whether Ida's assets are being managed appropriately especially as Ida has recently become quite forgetful.

What warning signs might raise concern?

Several potential issues arise from Ida's position.

Financial abuse: Where an attorney is managing bank accounts, making payments and undertaking financial transactions on behalf of a vulnerable individual, concerns can arise if there is a lack of transparency regarding expenditure or decision-making.

Conflict of interest: Attorneys must not use their position to obtain personal benefit unless expressly authorised. Gifts made by attorneys are heavily restricted and any substantial transfer of assets generally requires approval from the Court of Protection.

Undue influence: Vulnerable individuals who become increasingly dependent upon a single person can be exposed to pressure, whether intentional or otherwise. This can become particularly relevant if changes are made to wills, lifetime gifting arrangements or asset ownership structures.

Capacity and decision-making: If concerns exist regarding the donor's ability to understand and manage their affairs, family members may wish to consider whether decisions are genuinely being made by the donor or whether others are effectively controlling the process.

Importantly, suspicion alone is not evidence of wrongdoing. Families frequently become concerned when a previously unknown individual becomes heavily involved in the life of an elderly relative.

However, the law requires evidence before allegations can be substantiated.

Should Richard and Eleanor be concerned?

Richard and Eleanor's concerns are not unusual. Louise occupies a position of considerable trust. She assists with Ida's daily living arrangements, has access to her banking facilities and now holds a formal appointment as attorney. Those circumstances do not necessarily indicate misconduct, but they do create an environment in which concerns may legitimately arise.

Several questions might be explored:

• Has Louise maintained proper financial records of transactions undertaken on Ida's behalf?
• Can spending from Ida's accounts be explained and supported by receipts or invoices?
• Have any gifts been made to Louise or members of her family?
• Has Louise benefited from any changes to Ida's estate planning arrangements?
• Does Ida appear to understand and approve the decisions being made on her behalf?
• Has Ida become isolated from family members or increasingly dependent upon Louise alone?

None of these factors, taken alone, necessarily indicate wrongdoing. However, where several of these features are present simultaneously, particularly where an elderly person has become heavily dependent upon a single individual who controls access to their finances, further enquiries may be justified.

Where concerns escalate, it may become necessary to obtain financial disclosure, review bank statements or investigate significant transactions.

In more serious cases, concerns about attorney misconduct can result in referrals to the Office of the Public Guardian ("OPG"), investigations by safeguarding authorities or applications to the Court of Protection.

It is often far easier to investigate concerns during a person's lifetime than after death. Once evidence has been lost, memories have faded and witnesses are unavailable, recovering assets can become considerably more difficult.

What happens when an Attorney misuses their position?

Recent cases demonstrate the serious consequences that can follow where attorneys misuse their position. In MacDougall v Thomas [2026], the High Court ordered a husband and wife who had acted as attorneys under a Lasting Power of Attorney to repay approximately £1.7 million and return three properties worth a further £1.6 million after finding that they had committed significant financial misconduct in the management of the donor's affairs. The case serves as a stark reminder that attorneys occupy a fiduciary position and can be required to account for their actions, restore misappropriated assets and compensate the donor's estate where they have acted contrary to their duties.

Whilst cases of this nature represent the more extreme end of the spectrum, they illustrate the willingness of the courts to intervene where there is evidence that an attorney has used their position for personal gain rather than acting in the donor's best interests.

Practical steps for Richard and Eleanor

Before taking any formal action, Richard and Eleanor should approach the situation carefully and objectively.

Open communication is often the best starting point. They may wish to spend more time with Ida, understand her wishes and ascertain how she views Louise's involvement.

They should avoid making accusations without evidence. Premature allegations can damage relationships and make future investigations more difficult.

If concerns persist, practical steps could include:

• Reviewing the terms of the LPA.
• Asking Ida whether she is comfortable with Louise's arrangements.
• Encouraging greater transparency regarding expenditure and record keeping.
• Keeping notes of any unusual transactions, withdrawals or changes in circumstances.
• Obtaining legal advice from a specialist Court of Protection or Private Wealth practitioner.

Where evidence of financial mismanagement emerges, a report can be made to the OPG. The OPG has powers to investigate attorneys and, in appropriate cases, seek the removal of an attorney through the Court of Protection.

If there is evidence that assets have been misappropriated, further remedies may be available, including recovery proceedings against the attorney. In some cases, criminal proceedings may be considered appropriate if there is clear and blatant theft of the donor's assets in abuse of their position.

Key takeaways

As our population ages, disputes concerning attorneys and the management of elderly individuals' finances are becoming increasingly common.

The appointment of an attorney is designed to protect vulnerable individuals, not expose them to risk. However, where one person acquires significant influence over an elderly relative's finances, concerns can understandably arise.

For families such as the Harcourts, the challenge is striking the right balance. Genuine support from friends, neighbours and carers can be invaluable in allowing elderly individuals to remain independent. Equally, family members should not ignore warning signs where an attorney has extensive control over a vulnerable person's financial affairs.

Early investigation is often critical. Concerns raised and addressed during the donor's lifetime are generally far easier to resolve than disputes which only come to light after death, when the focus may shift from protection to recovery.