How Attorneys Should Handle Conflicts of Interest

Written by Anthony Dalton · Reviewed by James Tyrrell · Last reviewed 9 April 2026

An LPA attorney’s sole legal purpose is to act in the donor’s best interests. That sounds simple, but situations arise where an attorney’s own interests — financial, personal, or practical — could influence the decisions they make. When that happens, the attorney faces a conflict of interest. Understanding what constitutes a conflict, and what to do about it, is one of the most important aspects of the attorney role.

What Is a Conflict of Interest?

A conflict of interest arises when an attorney has a personal interest — financial or otherwise — that could improperly influence a decision they are making on behalf of the donor. The key word is “could”: even if the attorney would in practice act honestly, the existence of a potential influence is enough to create a conflict.

Under the Mental Capacity Act 2005, attorneys must always act in the donor’s best interests. Their own interests are legally irrelevant when making decisions under the LPA. Any decision tainted by personal interest is not a valid exercise of the attorney’s powers.

Common Conflicts of Interest

Some conflicts are obvious. Others are easy to overlook. The most common examples involving a property and financial affairs LPA include:

• Buying or renting the donor’s property — the attorney has a direct financial interest in the transaction that conflicts with their duty to achieve the best price for the donor
• Lending the donor’s money to yourself — or to your own business, partner, or close family member
• Making large gifts to yourself — beyond what is permitted under the LPA; see our guide on whether attorneys can give gifts
• Financial decisions that benefit you at the donor’s expense — for example, redirecting income or assets in a way that advantages you financially
• Using the donor’s money for your own purposes — even temporarily, even with the intention of repaying it

Less Obvious Conflicts

Not all conflicts are financial. Some arise from relationships or circumstances that create a less obvious personal interest:

• Choosing a care home where a family member works — the attorney may have a personal interest in that placement beyond the donor’s welfare
• Taking on employment paid from the donor’s funds — without specific authorisation, paying yourself to provide care or services to the donor creates a conflict
• Decisions that benefit one family member over another — where multiple people stand to inherit, financial decisions can be coloured by the attorney’s own interests as a potential beneficiary
• Business dealings involving the donor’s assets — if the attorney has a stake in a business that transacts with the donor’s estate

The Legal Standard: The Donor's Interests Come First

Attorneys have a duty to act in the donor’s best interests at all times. This is not simply a guiding principle — it is a legal requirement under the Mental Capacity Act 2005. An attorney who makes a decision that serves their own interests rather than the donor’s is acting unlawfully, regardless of whether they caused the donor financial loss.

The standard applies equally to joint attorneys. Where two attorneys are appointed, neither can allow their personal interests to colour a decision. Both remain bound by the best interests duty independently.

What to Do When a Conflict Arises

If you identify a potential conflict of interest, the right response is straightforward even if it feels uncomfortable:

For serious conflicts — particularly those involving property transactions or large sums — seek independent professional advice, or apply to the Court of Protection for authorisation before proceeding. The court can sanction a transaction that would otherwise represent a conflict, providing the attorney with legal protection.

What You Must Not Do

The temptation when a conflict arises is to rationalise it away. Common examples of problematic reasoning include:

• “I know the donor would have wanted this.” — Even if true, you cannot use assumed consent to override a conflict. The decision must be made through a proper process.
• “The donor is getting a fair deal.” — You cannot be the judge of fairness in a transaction where you have a personal interest. An independent valuation is required.
• “I’m a co-attorney, so it’s fine.” — Having a co-attorney does not automatically resolve a conflict involving one of them. The conflict must be addressed explicitly.

The safest course of action is always to get independent professional advice or court authorisation for any decision where your personal interests are engaged.

Consequences of Acting with a Conflict of Interest

An attorney who proceeds with a decision despite a conflict of interest faces serious consequences:

• OPG investigation — the Office of the Public Guardian can investigate complaints from family members, professionals, or anyone with a genuine concern
• Removal by the Court of Protection — the court can revoke an attorney’s appointment; see our guide on whether attorneys can be removed
• Civil liability — the attorney may be required to repay any financial loss caused to the donor
• Criminal prosecution — in the most serious cases, acting with a conflict of interest that causes financial harm to the donor can constitute financial abuse under the Mental Capacity Act, which is a criminal offence

If you are concerned that an attorney may be misusing an LPA, see our guides on what to do if an LPA is being misused and how to report an attorney misusing an LPA.

Common Questions About Attorney Conflicts

This guide was last reviewed and updated on 9 April 2026. Information is based on current legislation and OPG guidance for England and Wales.

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