Disputes relating to Powers of Attorney

Disputes relating to Powers of Attorney

Claims to remove attorney, recover financial loss from attorney. At Anthony Gold Solicitors, we help clients take swift, firm legal action when trust has been broken.

What is a Power of Attorney?

A Power of Attorney (PoA) is a legal document in which one person (the donor) gives another (the attorney) the authority to make decisions on their behalf.

There are three main types in England and Wales:

1. Ordinary power of attorney

  • Used when the donor has mental capacity. 
  • Often created for convenience – e.g., during travel or temporary illness. 
  • Automatically becomes invalid if the donor loses capacity. 

2. Lasting power of attorney (LPA)

  • Remains effective even after the donor loses capacity. 
  • Must be registered with the Office of the Public Guardian (OPG) before it can be used. 
  • Two types: 
    • Property and Financial Affairs LPA – for managing money, paying bills, selling property, etc. 
    • Health and Welfare LPA – for decisions about medical treatment, care, and living arrangements. 

3. Enduring power of attorney (EPA)

  • Predecessor to LPAs; still valid if made before 1 October 2007. 
  • Covers financial matters only. 

How we can help with disputes relating to powers of attorney

We have extensive experience in Court of Protection proceedings, disputes involving LPAs and financial abuse investigations. Our services include: 

  • Legal advice on the validity and scope of Powers of Attorney 
  • Mediation between attorneys and family members 
  • Applications to remove attorneys or revoke LPAs 
  • Representation in Court of Protection hearings 
  • Asset recovery actions through civil claims 

We understand the sensitivities involved and approach every case with discretion, professionalism, and compassion. 

What are the common types of disputes relating to Powers of Attorney?

1. Misuse of attorney powers

Attorneys must act strictly within the scope of their authority. Examples of misuse include: 

  • Making unauthorised gifts 
  • Transferring funds to themselves 
  • Selling property below market value 
  • Failing to account for financial transactions 

2. Financial abuse or misappropriation

An attorney may take advantage of the donor, either intentionally or through negligence. This may involve: 

  • Draining bank accounts 
  • Failing to use funds for the donor’s benefit 
  • Making secretive decisions without consulting co-attorneys or family 

3. Conflicts between attorneys

When attorneys are appointed jointly, any disagreement can result in deadlock. This may relate to: 

  • Care home arrangements 
  • Spending decisions 
  • Disagreements over gifts or use of the donor’s funds 

4. Concerns about the donor’s capacity

Disputes may also arise where: 

  • There are doubts over the donor’s capacity when the LPA was signed 
  • The donor seeks to revoke an LPA amid conflicting family opinions 
  • A third party (e.g., a care home) challenges the attorney’s authority 

Financial abuse: can you recover losses from an attorney?

If financial losses have occurred due to an attorney’s misconduct, there may be legal routes to recover these losses. Examples include: 

  • Restitution of misappropriated funds 
  • Setting aside unauthorised transactions 
  • Freezing bank accounts where misuse is ongoing 
  • Suing the attorney for breach of fiduciary duty 

What can be done to resolve disputes?

Speak to a solicitor early

Timely legal advice can often help de-escalate a dispute or prevent it from reaching court. 

Raise concerns with the office of the public guardian (OPG)

You can report an attorney to the OPG if you suspect misconduct. The OPG has powers to: 

  • Investigate the attorney’s actions 
  • Require accounts and records 
  • Refer serious cases to the Court of Protection 

Apply to the court of protection

The court has wide powers to: 

  • Remove an attorney 
  • Revoke a registered LPA 
  • Appoint a deputy to take over decision-making 
  • Compel the attorney to repay money or return assets 

This is particularly relevant if: 

  • The donor no longer has mental capacity 
  • There’s evidence of serious wrongdoing or conflict 

Pursue a civil claim

Where financial losses have occurred, a claim for compensation may be made. This could include: 

  • Recovery of stolen or misused assets 
  • Rescission of unauthorised transactions 
  • Freezing of bank accounts or assets 

Can you dispute the validity of a power of attorney?

In some cases, the validity of the PoA itself may be challenged. Common grounds include: 

  • The donor lacked mental capacity when signing 
  • The donor was pressured or coerced (undue influence) 
  • The attorney forged the signature or altered the document 

These cases can lead to the Power of Attorney being declared invalid, with retrospective action taken to reverse any decisions made under it.

Time limits and urgent action

While there are no strict statutory time limits in PoA disputes, delays can cause irreparable harm to vulnerable individuals. In urgent situations – such as the sale of a donor’s home or suspected theft – interim injunctions or urgent court applications may be required. 

If the donor is still alive but incapacitated, swift legal action is often essential to safeguard their welfare and finances. 

Words from our clients

What a great firm of solicitors, very professional would take your call you every time you rang and would made sure you understood everything that was happening got me through a very contentious probate 

Highly recommended you will not regret use this firm.

John Gallagher, 5* Trustpilot review

The help, guidance and professionalism received from Anthony Gold throughout our Probate case was excellent. From initial consultation to final completion…

Jim, 5* Trustpilot review

…I contacted Anthony Gold Solicitors on the recommendation of a friend and met with T, a specialist in issues such as Contentious Probate. With his help and guidance, the situation was recently successfully resolved by means of mediation, thus avoiding the further cost and distress of a court case. 

Julia, 5* Trustpilot review

Speak to the team today

Disputes Relating to Powers of Attorney: FAQs

Can a Power of Attorney be challenged before it’s ever used?

Yes. Even if an LPA hasn’t been activated, you can raise objections to its registration with the Office of the Public Guardian (OPG). Common reasons include concerns about the donor’s mental capacity at the time of signing, suspected undue influence, or procedural irregularities in how the document was executed. 

What evidence is needed to remove an attorney through the Court of Protection?

To remove an attorney, you’ll need to show that they are not acting in the donor’s best interests, this might include evidence of financial abuse, neglect, poor record-keeping, or conflicts of interest. Financial statements, property records, witness accounts, and even emails or texts can all be helpful. 

What is the difference between a Power of Attorney and a Lasting Power of Attorney?

A Power of Attorney is typically used for short-term or specific purposes and only while the person still has mental capacity. A Lasting Power of Attorney (LPA) is designed to continue if the person loses capacity and must be registered with the Office of the Public Guardian before it can be used.

Can gifts or loans made by an attorney be challenged later?

Yes. Attorneys can only make small, reasonable gifts (e.g. birthdays or charity donations) without court approval. Larger gifts, interest-free loans, or transfers of property can be challenged and even reversed by the Court of Protection if they are deemed unauthorised or not in the donor’s best interests. 

Can the court appoint a solicitor or independent person to act as attorney?

Not exactly. If there are serious concerns about the appointed attorney, the Court of Protection can revoke the Power of Attorney and instead appoint a professional deputy, often a solicitor, to manage the donor’s affairs. This usually happens when family conflict or misconduct makes it unsuitable for any relative to take on the role.