Can Attorneys Make Financial Decisions?
Understanding the scope of an attorney's financial authority under a Property and Financial Affairs LPA.
Written by Anthony Dalton · Reviewed by James Tyrrell · Last reviewed
Your attorney can pay your bills, manage your investments, deal with your bank, and handle your tax affairs — but only if you have given them authority under a Property and Financial Affairs Lasting Power of Attorney (LPA). Unlike many legal powers, this one can be used even while you still have mental capacity, which makes it unusually practical. But the scope of what an attorney can do — and the limits on their powers — is something every donor should understand.
At a glance
- Yes, attorneys can make financial decisions with a registered Property and Financial Affairs LPA — including banking, bills, investments, tax, and property
- Unlike a Health and Welfare LPA, a financial LPA can be used while the donor still has capacity (with their consent)
- Every financial decision must be in the donor's best interests; the attorney cannot use the donor's money for personal benefit
- An attorney cannot make or change the donor's will — this is outside the scope of any LPA
What Is a Property and Financial Affairs LPA?
A Property and Financial Affairs LPA is one of the two types of Lasting Power of Attorney available in England and Wales. It authorises your chosen attorney (or attorneys) to deal with your financial matters on your behalf. Unlike a Health and Welfare LPA, which can only be used once the donor has lost mental capacity, a Property and Financial Affairs LPA can be used as soon as it is registered with the Office of the Public Guardian — provided the donor consents to its use while they still have capacity.
This flexibility is one of the reasons a financial LPA is so valuable. It means that if you become physically unwell, are travelling abroad, or simply find it difficult to manage your own affairs, your attorney can step in and help without waiting for a formal assessment of your mental capacity.
What Financial Decisions Can an Attorney Make?
The scope of financial decisions an attorney can make is broad. Under a Property and Financial Affairs LPA, your attorney may:
- Manage bank and building society accounts — including making payments, transferring money, and setting up direct debits
- Pay bills and everyday expenses — such as utility bills, council tax, insurance premiums, and care home fees
- Collect income and benefits — including pensions, rental income, and state benefits on your behalf
- Deal with investments — buying, selling, or managing shares, bonds, ISAs, and other investments
- Manage property — including maintaining, renting out, or in some cases selling your property
- Handle tax affairs — completing self-assessment returns, dealing with HMRC, and managing tax payments
- Claim benefits and entitlements — applying for or managing welfare benefits, attendance allowance, or other support
- Make decisions about insurance — renewing, cancelling, or taking out insurance policies
Key point: An attorney's authority covers virtually all financial and property matters, but they must always act in the donor's best interests. They cannot use this power for their own benefit.
Limits on an Attorney's Financial Powers
While the powers granted under a financial LPA are extensive, they are not unlimited. There are important legal restrictions that every attorney must observe:
- Best interests duty — every financial decision must be made in the donor's best interests, not the attorney's. This is a legal requirement under the Mental Capacity Act 2005
- No self-dealing — an attorney cannot use the donor's money or assets for their own personal benefit unless the LPA specifically permits it
- Restricted gifts — attorneys may only give gifts on customary occasions (birthdays, Christmas) and the value must be reasonable relative to the donor's estate. For more on this, see our guide on whether attorneys can give gifts
- No will-making — an attorney can never make or change a will on the donor's behalf. This is outside the scope of any LPA
- Donor's instructions — the donor may include specific restrictions or conditions in the LPA document. For example, the donor might state that the attorney must not sell the family home, or that certain assets should be preserved
- Record keeping — attorneys must keep accurate financial records and be prepared to account for every transaction to the OPG if required
The Best Interests Duty in Practice
Acting in the donor's best interests is the cornerstone of an attorney's role. In financial terms, this means making decisions that protect and, where possible, grow the donor's assets. It means paying their bills on time, ensuring their home is maintained, and making sensible investment choices appropriate to their circumstances.
The attorney should also consider what the donor would have wanted. If the donor has always been cautious with money, the attorney should not take risky investment decisions. If the donor has always been generous to a particular charity, it may be appropriate to continue modest donations — but only within the limits set by law.
When the donor still has capacity, the attorney should involve them in financial decisions as much as possible. The LPA does not strip the donor of their right to manage their own affairs — it simply provides a safety net and additional support.
Can the Donor Restrict What an Attorney Does With Their Finances?
Yes. When creating a Property and Financial Affairs LPA, the donor has the option to include preferences (things they would like the attorney to consider) and instructions (binding rules the attorney must follow). For example:
- "My attorney must not sell my home unless it is necessary to pay for my care."
- "My attorney should consult my accountant before making any investment decisions."
- "I would prefer my attorney to use my funds to keep me in my own home for as long as possible."
- "My attorney must not make gifts exceeding £100 per occasion."
Instructions are legally binding on the attorney, while preferences are advisory. Both are important tools for ensuring your financial wishes are respected. Including clear instructions can prevent misunderstandings and give your attorney confidence about what you expect.
Tip: Be specific but not overly restrictive when setting instructions. If your instructions are too rigid, your attorney may not be able to act quickly in an emergency. Strike a balance between control and flexibility.
What Happens If an Attorney Misuses Financial Powers?
If an attorney misuses their financial authority — for example, by spending the donor's money on themselves, making reckless investments, or failing to pay essential bills — there are safeguards in place. The duties of an attorney are enforceable by law, and breaching them can have serious consequences.
Anyone who suspects an attorney is misusing their powers can report the matter to the Office of the Public Guardian (OPG). The OPG has the authority to investigate concerns and, if necessary, refer the matter to the Court of Protection. The court can revoke the LPA, remove the attorney, order them to repay misused funds, or even refer the matter to the police for criminal prosecution in cases of theft or fraud.
These safeguards exist to protect donors and ensure that the significant trust placed in attorneys is not abused. Choosing a trustworthy and competent attorney is one of the most important decisions you will make when setting up your LPA.
When you're ready to name your attorneys and create your LPA, our guided service makes the process straightforward. See pricing.
Key Takeaways
- Broad but not unlimited powers — a financial LPA covers banking, bills, investments, property, tax, and benefits, but the attorney must always act in the donor's best interests.
- Usable before capacity is lost — unlike a Health and Welfare LPA, a Property and Financial Affairs LPA can be used as soon as it is registered, with the donor's consent.
- The donor can set binding restrictions — instructions in the LPA (such as "do not sell my home unless necessary for care") are legally enforceable.
- Records are mandatory — attorneys must keep accurate financial records of every transaction; the OPG can request these at any time.
- Misuse has serious consequences — the OPG can investigate, the Court of Protection can revoke the LPA, and criminal prosecution is possible for theft or fraud.
Top Questions About Attorneys and Financial Decisions
Can a financial attorney make decisions while the donor still has capacity?
Yes. A Property and Financial Affairs LPA can be used as soon as it is registered, even while the donor still has full mental capacity — provided the donor consents. This makes it useful for practical convenience, such as delegating banking tasks during illness or travel.
Can an attorney change the donor's will or make a new one?
No. An attorney can never make or change a will on the donor's behalf. This is completely outside the scope of any LPA. Only the donor themselves can make a will while they have testamentary capacity.
Does a financial attorney have to keep records of every transaction?
Yes. Attorneys have a legal duty to keep accurate financial records of all transactions made on the donor's behalf. The OPG can request to see these records at any time, and clear record-keeping is essential evidence that the attorney is acting properly.
This guide was last reviewed and updated on . Information is based on current legislation and OPG guidance for England and Wales.
Official Guidance
Further reading from GOV.UK
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