What to do if you've been appointed as an attorney in a power of attorney

In this guide, we focus only on the power of attorney for Property and Financial Affair. In England and Wales, this is called a lasting power of attorney; in Scotland, a continuing power of attorney; and in Northern Ireland, an enduring power of attorney.

In a power of attorney, the donor, or granter in Scotland, is the person who appoints you to act on their behalf. This means they trust you, the attorney, to make decisions that align with their wishes and look after their affairs. The donor, or granter, decides what the attorney can do, when they can act, and can end this authority at any time if they have mental capacity.

Mental capacity means being able to decide or act on your own. If someone can’t do this, they’re considered to ‘lack capacity’.  

If your donor, or granter, appears to have lost mental capacity, the first thing to do is to check if this is the case. 

Find out more about mental capacity in our guide Helping someone who has lost mental capacity manage their money.

Being a Property and Financial Affairs attorney is a responsible role, so it’s important that the person appointing you discusses it with you beforehand and you’ll need to make sure you’re comfortable taking on this role.  As an attorney, you’ll make, or help the donor, or granter, make decisions about:

• money, taxes, and bills

• bank and building society accounts

• property and investments

• pensions and benefits.

Acting as an attorney means you're responsible to follow any instructions the donor, or granter, included in the power of attorney. 

You can act on these instructions while the donor still has mental capacity if they give you permission. (CH this applies to Scotland and add in variation if not).

It's important to avoid situations where your personal interests could clash with your duty. Consider:

• what the donor wants (or would want if they have lost mental capacity)

• whether the donor can be helped to make all or part of the decision

• whether the decision is in their best interests.

A donor, or granter, can appoint multiple attorneys and can specify how decisions should be made.

If you're one of several attorneys, it's important to agree on some basics before the power of attorney is activated to ensure smooth decision-making. 
 
A power of attorney outlines how decisions are to be made:

• Jointly: all attorneys must always make decisions together. It means that if one of them dies, the power of attorney would become invalid – unless the donor, or granter, appointed replacement attorneys.

• Jointly and severally: attorneys can make decisions individually or together.

• Jointly for some decisions and some individually: certain decisions will need to be made together. The donor, or granter, chooses what these are in the power of attorney. If one of you can no longer act on the donor’s behalf or dies, the remaining attorneys won’t be able to make any of the joint decisions unless the donor, or granter, appointed replacements.

• Unspecified: the default position in law is that attorneys must act jointly. 

If there are different attorneys for Financial and Property Affairs power of attorney and Health and Financial power of attorney, it’s important that you all communicate regularly and:

• ensure you all have shared access to necessary documents

• discuss decisions involving health and finances together

• know who the emergency contacts are and wishes 

• focus on the person’s wellbeing and preferences in decisions

• get advice from professionals when needed

• keep detailed records of all decisions made.

This will help make decisions smoothly, especially when health issues affect finances.

• Clearly define the types of decisions you can make especially if there is more than one attorney.

• Make sure it's clear how they want you to handle their money, like investments, budgeting and big expenses.

• Check how many attorneys there are and when you can start acting as an attorney.

• Ask about their long-term care plans, living arrangements and how they want to pay for care if they become seriously ill.

• Go through important paperwork together.

• Address any worries or specific instructions they have about their finances.

It’s important to approach your role with empathy and respect. If you're unsure how to start the money conversation, get essential tips from our guide How to have a conversation about money.

Before you start acting as an attorney, make sure the power of attorney has been registered. This is because you won’t be able to start acting as an attorney until it is.

Your donor, or granter, can register a power of attorney if they have mental capacity. If they have lost mental capacity before registering it, you can register it for them.  

You can find more about how to register a power of attorney in your country in our guide.

Read the power of attorney carefully to understand and check what specific actions you have permission to perform.

Keep a record of all transactions, decisions, and communications related to the donor’s, or granter’s, finances. This includes keeping receipts, bank statements, and a log of actions taken.

Make a list of who needs to be notified, such as:

• banks and building societies

• pension providers

• mortgage company or landlord, if renting 

• Department for Work and Pensions (DWP) if the donor gets a State Pension or benefits

• HMRC

• insurance companies (household and life insurance)

• utility companies (water, gas, electricity) 

• local council or HSCNI (for Council Tax or Rates).

The Office of the Public Guardian has an online toolOpens in a new window that lets you:

• view the power of attorney

• keep a track of who has been given access to the power of attorney

• see how many people are named as an attorney in the power of attorney. 

Each organisation or provider has its own rules for verifying and accepting a power of attorney. You can usually find the information on their website or by calling them. Most organisations and financial providers have a department that handles power of attorneys.

Banks and other organisations will ask for proof that you are an attorney.  Use your power of attorney to prove you can act for the donor.

You may need to prove other details, such as:

• your identity with a passport or driving licence 

• where you live with a recent utility bill or Council Tax or Rates bill.

If you’re having problems using the power of attorney, you can check if that bank or company has acted within the law for the relevant region on the Financial Ombudsman Service websiteOpens in a new window

It’s a good idea to keep an eye on the donor’s, or granter’s day-to-day spending by:

• helping them pay their bills on time

• suggesting that you make shopping trips together, and

• offering to read through their bills and statements. 

If you’ve never dealt with debts before and you need step in with a power of attorney, it’s important to get advice. There are lots of different solutions available to deal with debts that a trained adviser will be able to explore with you, especially if there are multiple debts or the situation is complex. Debt advice is free, impartial and confidential.

They will need to see your power of attorney so they know you can act on behalf of the donor, or granter. Then they’ll be able to prioritise which debts to tackle first and suggest the best way to pay them off quickly.

Use our debt advice locator tool to find free debt advice online, over the phone or close to where you live.

Find out if they:

• use credit cards

• have overdrafts, or 

• have taken out a loan. 

If they have any of these, make sure they can cover those payments. Work out which bills to pay first by using our Bill prioritiser tool.

Watch out for signs that they might be heading into money problems, like:

• only paying the smallest amount on credit cards

• taking on new credit before clearing old debts, or 

• resorting to expensive credit because they were turned down for regular loans. 

Our guide how to reduce your borrowing can help with managing credit payments better.

If they have not been keeping on top of their finances or it isn’t clear what essential costs need to be met, fill in our free Budget planner to get an overview of income and outgoings.

• You can help set up standing orders and Direct Debits with their bank to ensure essential bills are paid. As an attorney, it’s important to keep a record of your dealings.

Check Direct Debits and standing orders to see recurring payments and talk to the donor, or granter, to find out what services are important to them and which ones they no longer need. For example:

• mobile phone 

• broadband contracts, and

• TV streaming services.

To make any changes on behalf of the person you will need to send in a power of attorney. The provider should be able to shut down the account even if you’re not able to produce passwords. 

If they say they can’t do it because you can’t provide a password, they can use other security methods.

The donor, or granter, and any dependents who are still living in the home may qualify for a Council Tax or Rates reduction if any of the following things apply:

• for living alone

• being on means tested benefits, for example, Pension Credit

• if they have lost mental capacity and are still living in the home (their partner can still be living with them)

• has moved into a care home or hospital

• has a disability and needs a larger home for their needs. 

Find out if they qualify for a reduction in our guide about Council Tax.  

Look at their bank statements to see what benefits they are receiving.

Use our Benefits calculator to see if they're missing out on anything, like Pension Credit, which could qualify them for extra support, such as winter fuel payments or special tariffs on bills.

If they have mental capacity, your donor or granter can give permission for you to act as a representative.  This allows you to talk to the benefits office and help with managing their claim. You can also find out information on their behalf and help them understand things about their claim.

If they can't manage their benefits, you can legally become their appointee, allowing you to make and manage claims for them. The Department for Work and Pensions (DWP) will interview you and can remove this role if necessary. Find out more at GOV.UKOpens in a new window

Contact HMRC. Send the original power of attorney or a certified copy to:

Tax Credit Office at St Mark’s House, 

St Mary’s Street, 

Preston,  

PR1 4AT

Depending on their situation and the reason for using the power of attorney, this might be seen as a change. In such cases, they could be asked to apply for Universal Credit instead. 

If that happens, tax credits will stop, and you may need to help them claim Universal Credit if they are below State Pension age.

Some benefits may stop if they stay in a care home for more than 28 days. The Turn2US Care Homes and Benefits guide explains which benefits can continue. 

Notify the relevant benefits agency immediately if they spend one night or more in the hospital. Find out more at GOV.UKOpens in a new window

Claiming or managing benefits for someone else can be complicated. If you need advice about any aspect of a benefits claim, from eligibility to filling in forms or dealing with problems, contact a specialist adviser through Advice LocalOpens in a new window

Claiming and managing benefits can be complicated. Free, confidential benefits advice is available through Advice LocalOpens in a new window You can speak to one of their specialist advisers about any aspect of a benefits claim, from eligibility to filling in forms or dealing with problems.

Banks will ask for proof that you’re an attorney. Use your power of attorney to prove you can act for the donor, or granter. You usually have the same power to manage their account (the account holder), depending on the account’s terms and conditions.

If you need help finding out how to access their bank as an attorney or if you're looking to open a new account on their behalf, see this useful guide at MoneySavingExpertOpens in a new window

You must keep their finances separate from your own, unless you’ve got a joint bank account, or you own a home together.

It’s important to follow their instructions on the power of attorney and keep a record. As an attorney, part of your job is to help them:

• decide gifts if they have mental capacity, or

• arrange gifts if they can't make decisions. 

Gifts should be reasonably priced, affordable, and mainly given to friends, family, or people they know. This includes customary gifts for occasions like birthdays or weddings.  

You must ensure they can afford the gift or donation, even if they've spent money on similar things before. For example, you can't donate their money if it would make it difficult for them to pay for their care.

The Office of the Public Guardian has a useful guide that can help you and the donor, or granter, decide what counts as a reasonable giftOpens in a new window

If the donor, or granter, has to pay tax on income, they may have to fill out a self-assessment tax return. It’s a good idea for them to keep doing this if they have mental capacity and for you to help them. 
 
To help them, fill out the online self-assessment form, both of you need to register with Government GatewayOpens in a new window which HMRC uses to verify your identity.

To handle a self-assessment tax return and manage more complicated tax affairs, you’ll need to let HMRC know you have a power of attorney. Find out what to do and how to contact HMRC at GOV.UKOpens in a new window

If you've never filled out a self-assessment tax return, use our guide to help you.

You can also find out more about where to get further help with tax queries.

If the donor, or granter, needs extra support with medical care, daily living activities and mobility, the first step is to get a free care needs assessment. 

Find out how the care needs assessment works and what financial and practical support is available in our guide Help with long-term care costs from your local council or HSCNI.

If the donor, or granter, needs to move into a care home or a more suitable property or needs care at home, there are things to consider before selling their home or downsizing.

• Check if your local council or Health and Social Care Trust in Northern Ireland (HSCNI) can defer care costs until after they have passed away or moved out of care, which might allow them to keep the property.

• Consider options like equity release or later life borrowing schemes instead of selling.

• Think about whether they need to downsize or adapting the current home. 

• Review the costs involved in selling the property and understand the impact of receiving a large lump sum from the sale on their benefits and tax obligations. 

It’s important to get legal adviceOpens in a new window if:

• the sale is below the market value

• you want to buy the property yourself 

• you’re giving it to someone else.

If the donor, or granter, has gone into long-term care and you want to rent out their property to help cover some of the care home fees, there are lots of things to consider.

• If you decide to rent out, you can use a letting agency to handle the management, but this will come with fees.

• You can manage the tenancy yourself, but be prepared for the costs and effort involved in repairs and property management. Find out how you can get support from the National Residential Landlords Association (NRLA)Opens in a new window

• Be aware of how the rental income will affect their finances, such as their tax bill and means-tested benefits. 

Remember, you must always act in the person’s best interests and follow what is set out in the power of attorney.

It's a good idea to use one account to pay all bills, as it makings tracking expenses easier. You could also consider keeping money in a separate, easy-access account

You can use your power of attorney to allow regular payment, like standing orders,  to keep their home in good condition.

If they’re using an equity release product or a deferred payment agreement to fund long-term care, good property maintenance may be a condition of the schemes, so you’ll need to check and factor this into the budget. 

If the donor, or granter, lives at home and you need to adapt their home because of a disability or old age, you can apply to the council, or HSCNI, for equipment or help. Find out what help is available in our guide Funding to adapt your home for accessibility.

You must ensure their property and possessions are protected, even if they no longer live at home. 
 
If they have moved into long-term care, compare costs for unoccupied home insurance. 
 
If they have short hospital stays, check the policy for coverage. Some policies automatically cover short stays for up to 30 or 60 days, while others require you to inform the insurers to avoid invalidating the policy. 
 
Always compare multiple quotes and ensure the policy covers your needs.

Our guides can help you decide what you need to include in the cover:

• Buildings insurance – what does a good policy look like?

• Contents insurance – what does a good policy look like?