What Are the Risks of Giving Someone Power of Attorney?
The risks are real but manageable — and far smaller than the risk of having no LPA at all.
Written by Anthony Dalton · Reviewed by James Tyrrell · Last reviewed
Handing someone the legal power to manage your finances or make health decisions on your behalf is not a decision to take lightly. And yet, the alternative — having no Lasting Power of Attorney at all — carries risks that are far harder to manage. Understanding what can go wrong, and how the law protects you, is the best way to make a confident decision.
At a glance
- The main risks of an LPA include financial misuse, poor decision-making, and conflicts of interest — all of which are illegal under the Mental Capacity Act 2005
- Safeguards include certificate providers, OPG oversight, the Court of Protection, and the ability to appoint multiple attorneys
- You can revoke an LPA at any time while you have mental capacity
- The risk of not having an LPA is greater: no one can act for you, and the Court of Protection alternative costs £1,000+ and takes months
- This guide applies to LPAs made under the law of England and Wales
The Real Risks of Giving Someone Power of Attorney
An LPA gives your chosen attorney significant legal authority. With a Property and Financial Affairs LPA, they can access your bank accounts, pay your bills, sell your property, and manage your investments. With a Health and Welfare LPA, they can make decisions about your medical treatment, your living arrangements, and your daily care.
That’s a lot of power. And while most attorneys act responsibly, the risks are worth understanding before you sign.
Financial misuse
The most commonly feared risk. An attorney could spend your money on themselves, make reckless investments, or drain your savings. This is illegal — attorneys must act in your best interests at all times — but it does happen, particularly where oversight is limited.
Poor decision-making
Even a well-meaning attorney can make decisions you wouldn’t agree with — selling a property you wanted kept, choosing a care home you wouldn’t like, or refusing a medical treatment you would have accepted. Not every bad decision is malicious; some are simply misjudged.
Conflicts of interest
An attorney who stands to inherit from you, or who benefits financially from a decision they make on your behalf, has a conflict of interest. For example, an adult child acting as attorney might resist paying for expensive care to preserve their inheritance.
Family disputes
Appointing one family member as attorney can create resentment among others. Siblings may question decisions, suspect favouritism, or disagree with care choices. See our guide on what happens when family members disagree about an LPA.
Loss of autonomy
With a Property and Financial Affairs LPA, your attorney can potentially act while you still have capacity (unless you restrict this). Some people worry about losing control over their own finances prematurely, though in practice you retain full authority while you have capacity.
Attorney becomes unsuitable over time
Circumstances change. An attorney appointed in your 50s might develop health problems, move abroad, or your relationship might deteriorate by the time the LPA is needed years later.
Safeguards Built Into the Law
The Mental Capacity Act 2005 doesn’t just create LPAs — it builds in a set of safeguards designed to prevent abuse and hold attorneys accountable. These aren’t optional extras; they are legal requirements.
- Best interests duty — attorneys are legally required to act in the donor’s best interests at all times. This isn’t a vague suggestion; it’s an enforceable legal obligation under the Act.
- Certificate provider — before an LPA can be registered, an independent person must confirm that the donor understands what they’re signing and is not being pressured. This is a crucial safeguard against coercion.
- Registration with the OPG — every LPA must be registered with the Office of the Public Guardian. This creates an official record and allows the OPG to monitor and investigate if concerns are raised.
- Notification during registration — you can name up to five people to be notified when the LPA is registered. This gives trusted individuals a chance to raise objections before the LPA takes effect.
- OPG investigations — anyone can report concerns about an attorney to the OPG. They have powers to investigate, require attorneys to produce records, and refer serious cases to the Court of Protection.
- Court of Protection — the court can remove an attorney, revoke an LPA, or make specific orders about how the donor’s affairs should be managed. This is the ultimate backstop.
Key point: An attorney who misuses an LPA is committing a criminal offence. They can face prosecution, be ordered to repay money, and be permanently barred from acting as an attorney.
How to Reduce the Risks Before You Sign
You can’t eliminate risk entirely — no legal document can guarantee perfect outcomes. But you can reduce it dramatically with careful planning.
Choose your attorney carefully
This is the single most important decision. Pick someone you trust completely — not just someone who’s available. Consider their track record with money, their temperament under pressure, and whether they understand your values. See our guide on how to choose the right attorney.
Appoint more than one attorney
Two or more attorneys provide a natural check on each other. You can appoint them jointly (must agree on everything) or jointly and severally (can act independently). Joint appointments offer more protection but are less practical; jointly and severally is more flexible.
Name replacement attorneys
A replacement attorney steps in if your original attorney can no longer act. Without one, your LPA could fail entirely, leaving you unprotected.
Add preferences and instructions
You can include instructions in your LPA that restrict what your attorneys can do — for example, requiring them to keep your home unless a doctor confirms you cannot return. Instructions are legally binding; preferences are guidance your attorneys should follow.
Name people to be notified
When you create your LPA, you can list up to five “people to notify” when it’s registered. These people can raise concerns or formal objections before the LPA takes effect — an early warning system.
Restrict when the LPA can be used
For a Property and Financial Affairs LPA, you can specify that it should only be used once you lack mental capacity. This prevents your attorney from acting while you’re still able to manage your own affairs.
The Bigger Risk: Not Having an LPA at All
Most people searching for the risks of power of attorney are worried about what could go wrong. That’s understandable. But the risk that catches far more families off guard is the one they didn’t think about: having no LPA when one is needed.
Without an LPA, if you lose mental capacity, your family has no legal authority to manage your finances or make health decisions on your behalf. Being married to someone, or being their adult child, gives them nothing. They would need to apply to the Court of Protection for a deputyship order — a process that costs over £1,000 in fees and solicitor costs, takes 4–6 months or longer, and puts a court-appointed deputy in charge rather than someone you chose.
Here’s how the two risks compare side by side.
| Risk factor | Having an LPA | No LPA |
|---|---|---|
| Who acts for you | Someone you chose and trust | Whoever the court appoints — may not be your preference |
| Cost | £92 per LPA to register | £1,000+ for deputyship, plus £320/year ongoing supervision |
| Timeframe | Ready to use once registered (8–10 weeks) | 4–6 months or longer for a court order |
| Financial misuse risk | Exists — mitigated by safeguards, multiple attorneys, and instructions | Also exists under deputyship — with stricter but more costly court supervision |
| Your control | You choose who, when, and how they act | You have no say — the decision was already too late |
| Family stress | Manageable — the framework is already in place | Significant — navigating courts during a family crisis |
What Happens If an Attorney Misuses Their Powers
If the worst does happen, the system has teeth. An attorney who abuses their position faces serious consequences.
Anyone — a family member, a neighbour, a care worker, a bank — can report concerns to the OPG. The OPG will investigate, and if warranted, can refer the case to the Court of Protection. The court has power to:
- Remove the attorney and appoint a replacement or a court-appointed deputy
- Order the attorney to repay money they’ve taken or misspent
- Revoke the LPA entirely if it was obtained through fraud or undue pressure
- Refer the matter for criminal prosecution — theft, fraud, and financial abuse are all criminal offences
For the full picture, see our guide on what happens if an LPA is misused.
When the Risks Are Higher
Not all LPA arrangements carry the same level of risk. Some situations call for extra caution.
- Single attorney with no replacement — one person with unchecked power and no backup. If they act poorly, there’s no second pair of eyes.
- Attorney with financial problems of their own — someone struggling with debt or financial mismanagement may be tempted to use your funds for their own needs.
- Strained relationships — if your relationship with your attorney deteriorates after the LPA is created, they may not act with your best interests at heart.
- No instructions or preferences set — the more discretion you leave to your attorney without guidance, the more room there is for decisions you wouldn’t agree with.
- Attorney who lives far away — distance can make it harder for them to understand your daily needs and circumstances, and harder for others to notice if something is wrong.
In each of these situations, the mitigation is the same: appoint more than one attorney, add clear instructions, and name people to be notified.
You Can Always Revoke Your LPA
One of the most important things to understand is that an LPA is not permanent. As long as you have mental capacity, you can revoke your LPA at any time. You don’t need anyone’s permission, and you don’t need to give a reason.
The process involves completing a short deed of revocation and sending it to the OPG. If your circumstances change — perhaps you fall out with your attorney, or they develop health problems of their own — you can revoke the existing LPA and create a new one with different attorneys.
You can also change your mind about an LPA before it’s registered, withdrawing the application with no fee penalty.
Key point: Creating an LPA does not lock you in. You keep full control of all your own decisions while you have capacity, and you can revoke or replace the LPA whenever you choose.
When you're ready to name your attorneys and create your LPA, our guided service makes the process straightforward. See pricing.
Key Takeaways
- Real risks exist — financial misuse, poor decisions, conflicts of interest, and family disputes are all possible when you give someone power of attorney.
- The law protects you — the Mental Capacity Act 2005 requires attorneys to act in your best interests, and the OPG and Court of Protection can investigate and remove those who don’t.
- Multiple attorneys reduce risk — appointing two or more attorneys provides a natural check on each other’s decisions.
- Instructions limit attorney powers — you can add legally binding instructions to your LPA restricting what your attorneys can do.
- No LPA is a bigger risk — without an LPA, your family faces Court of Protection costs (£1,000+), months of delay, and no say in who manages your affairs.
- You can revoke at any time — as long as you have mental capacity, you can cancel your LPA by completing a deed of revocation and notifying the OPG.
Common Questions About Power of Attorney Risks
Can an attorney steal my money with a power of attorney?
It is possible but illegal. An attorney who misuses an LPA commits a criminal offence and can be removed by the Court of Protection. The Office of the Public Guardian investigates suspected abuse. Choosing a trustworthy attorney and appointing more than one reduces this risk significantly.
Can I cancel a power of attorney if I change my mind?
Yes. As long as you have mental capacity, you can revoke your LPA at any time by completing a deed of revocation and notifying the Office of the Public Guardian.
What safeguards exist to prevent power of attorney abuse?
Multiple safeguards exist under the Mental Capacity Act 2005: attorneys must act in the donor’s best interests, a certificate provider confirms the donor understands the LPA, the OPG can investigate concerns, and the Court of Protection can remove attorneys. You can also appoint multiple attorneys and add instructions to limit their powers.
Is giving someone power of attorney dangerous?
Not if you choose carefully. The risks of having an LPA are real but manageable with the right safeguards. The risks of not having one are far greater — without an LPA, your family has no legal authority and must apply to the Court of Protection, costing over £1,000 and taking months.
This guide was last reviewed and updated on . Information is based on current legislation and OPG guidance for England and Wales.
Official Guidance
Official resources from GOV.UK
Give Your Family Peace of Mind
Choosing the right attorney now means your loved ones won’t face difficult decisions alone.
