Most articles about Lasting Powers of Attorney focus on the same message: get one in place before it's too late. And that advice is sound. But there's a conversation that rarely happens — one that could matter even more to your family's financial security.
What happens when the person you appoint as your attorney turns out to be the wrong choice?
For Sheffield property owners, landlords managing rental portfolios, and small business owners with complex financial affairs, the consequences of a poorly chosen attorney can be severe. In some cases, they can be more damaging than having no LPA at all.
This article sets out to address that gap honestly, because understanding the risk is the first step to avoiding it.
The Hidden Risk Most LPA Guides Never Mention
A Lasting Power of Attorney is a legal document that gives someone you choose — your attorney — the authority to make decisions on your behalf if you lose mental capacity. There are two types: one covering property and financial affairs, and one covering health and welfare.
The protections built into the LPA system are meaningful but imperfect. The Office of the Public Guardian (OPG) registers LPAs and can investigate concerns, but it does not monitor attorneys on an ongoing basis. There is no routine audit of how an attorney is managing your finances. No one checks in quarterly to confirm your money is being spent appropriately.
This means the system operates largely on trust — and when that trust is misplaced, the fallout can be catastrophic.
Under the Mental Capacity Act 2005, attorneys are required to act in the donor's best interests, keep accounts, and avoid conflicts of interest. These are serious legal obligations. But the reality is that many attorneys — often loving family members with entirely good intentions — simply do not understand what those obligations mean in practice. They may mix funds, make gifts they have no authority to make, or take decisions that benefit themselves rather than you.
And in the worst cases, attorneys do not have good intentions at all.
Financial abuse by attorneys is a recognised concern. The OPG has reported receiving thousands of safeguarding referrals in recent years, with a notable proportion relating to concerns about financial mismanagement or alleged theft by attorneys — though the precise scale of proven abuse varies year to year and readers should consult the OPG's annual reports for current figures. The very document designed to protect you can, in the wrong hands, become a tool for exploitation.
This is the hidden risk. And it applies whether you live in a Sheffield suburb, own a portfolio of rental properties across South Yorkshire, or run a business with employees and ongoing contracts.
How a Wrong Attorney Choice Can Actively Harm Your Family
The harm caused by a wrong attorney choice typically falls into four categories.
Financial mismanagement through ignorance. Many attorneys are appointed because they are close to the donor — a spouse, an adult child, a sibling. Closeness is not the same as competence. Managing someone's finances when they lack capacity can involve navigating benefit entitlements, property decisions, business continuity, and tax obligations. An attorney who is not financially literate, or who does not seek professional guidance, can make costly mistakes with entirely good intentions.
Unauthorised gifts and transfers. Attorneys have very limited authority to make gifts. Under the Mental Capacity Act, gifts can generally only be made to people connected with the donor on customary occasions such as birthdays, and must not be unreasonable given the size of the estate. Despite this, some attorneys — particularly those who believe they are simply managing what will eventually be their inheritance — make significant transfers to themselves or other family members. This is unlawful. It can deplete an estate, attract HMRC scrutiny, and result in the attorney being personally liable to repay funds.
Family conflict and disputes. When multiple attorneys are appointed and required to act jointly, any disagreement can bring decision-making to a complete standstill. A Sheffield landlord whose properties are held jointly and who appoints two adult children as joint attorneys may find, in the event of incapacity, that those children cannot agree on whether to sell a property, renew a tenancy, or pursue a troublesome tenant. Every month of delay has a financial cost. In some cases, resolving the deadlock requires an application to the Court of Protection — an expensive and slow process.
Deliberate financial abuse. In the most serious cases, attorneys use their position to enrich themselves at the donor's expense. This can range from paying themselves excessive 'expenses' to outright theft of savings or property. Victims are, by definition, people who cannot manage their own affairs and may not be able to raise the alarm. Family members who suspect abuse face a difficult and emotionally painful process of seeking intervention.
In all of these scenarios, someone with no LPA at all would at least require the Court of Protection to appoint a deputy — a process that, while cumbersome, involves external scrutiny and ongoing supervision. A bad attorney operates with authority but without that supervision, and that combination can be genuinely dangerous.
Real-World Scenarios for Sheffield Property Owners, Landlords and Business Owners
These risks are not abstract. Consider scenarios that reflect the real circumstances of people across Sheffield and South Yorkshire. The following are illustrative examples, not accounts of specific individuals.
The Sheffield landlord with a rental portfolio. A landlord in his late sixties owns seven properties across Rotherham and Sheffield. He appoints his eldest son as sole attorney for property and financial affairs. After a stroke leaves him without capacity, his son begins making decisions about the portfolio — including selling two properties at below-market value to a friend and using rental income to fund personal expenditures. By the time other family members raise concerns, a significant sum has been lost. Recovering it requires civil litigation, and there is no guarantee of success.
The small business owner in Hillsborough. A woman runs a small manufacturing business with twelve employees. She appoints her husband as attorney, but he has no business experience and no understanding of her commercial relationships. When she develops dementia, he is unable to sign contracts, manage payroll decisions effectively, or liaise with her accountant in any meaningful way. The business deteriorates rapidly. Her employees lose their jobs. The asset she built over twenty years is worth a fraction of its former value by the time her affairs are formally resolved.
The retired couple in Dore. A husband and wife appoint each other as attorneys and name their two children as replacements. The children have a fractured relationship following an earlier family dispute. When both parents lose capacity within eighteen months of each other, the children must act as joint attorneys but cannot agree on anything. The family home sits empty, generating costs, while an application to the Court of Protection is prepared. The legal fees eat into the estate. The property is eventually sold, but the outcome is far worse than it would have been with a well-structured LPA and a professional attorney.
These scenarios reflect patterns that estate planning solicitors and the OPG encounter regularly, though individual circumstances will always vary.
The Warning Signs of an Attorney Who Could Cost You Everything
Choosing the right attorney begins with understanding what makes the wrong choice. There are warning signs that, taken together, should give any donor serious pause.
They believe the role is primarily about inheritance. Some potential attorneys — particularly adult children — view being named as attorney as a signal about who will eventually inherit. This mindset is dangerous. The attorney's job is to serve the donor's interests, not to manage the estate as though it is already theirs.
They have a history of financial difficulty. An attorney who struggles to manage their own finances is unlikely to manage yours well. Personal debt, county court judgements, or a history of bankruptcy are serious red flags. The OPG does not currently conduct automatic checks on attorneys' financial history, which means the responsibility for this assessment falls on you.
They are domineering or dismissive of others. If a potential attorney tends to override other family members, refuses to consult, or has a pattern of making unilateral decisions in other areas of family life, that character trait will likely manifest in how they handle your affairs.
There is existing family conflict. Appointing an attorney who is in conflict with your other beneficiaries creates the conditions for costly disputes. That conflict does not disappear when you lose capacity — it intensifies, because the stakes become real.
They live far away or are frequently unavailable. Being an attorney is a practical role. It requires time, attention, and availability. An attorney who lives abroad or has a demanding career may be entirely trustworthy but practically unable to fulfil the role effectively.
They have no understanding of the legal obligations involved. Many people accept the role of attorney without any real appreciation of what it entails. Before appointing someone, consider whether they understand the duties involved — or whether they are willing to learn them.
What the Court of Protection Process Actually Costs When Things Go Wrong
When an LPA fails — whether because an attorney is removed, has died, or has acted unlawfully — the Court of Protection often becomes the only avenue for resolution.
The Court of Protection deals with decisions about people who lack mental capacity. It can appoint deputies, review attorney conduct, make one-off decisions, and revoke LPAs. It is a necessary institution, but it is slow and expensive.
The court application fee alone is currently £371 for a deputyship application — readers should verify the current fee on the Court of Protection fees page as these are subject to change. But the real costs are the professional fees. A solicitor managing a Court of Protection application — whether to appoint a deputy or to investigate and remove a problematic attorney — will typically charge between £200 and £400 per hour, though rates vary by firm and case complexity. Complex cases, particularly those involving property disputes or allegations of financial abuse, can run to tens of thousands of pounds in legal fees.
Once a professional deputy is appointed, they charge ongoing fees — typically assessed by the Senior Courts Costs Office — which are paid from the estate. These fees are not trivial. For a Sheffield property owner with significant assets under management, annual deputy fees can amount to several thousand pounds per year, every year, for the remainder of their life.
In contrast, setting up an LPA with carefully chosen attorneys — including a professional attorney where appropriate — costs a fraction of this. The OPG registration fee is £82 per LPA at the time of writing, though this figure is subject to change and should be confirmed on the OPG website. Professional solicitor fees for a well-drafted LPA are modest compared to the costs of Court of Protection intervention.
The lesson is simple but important: the cost of getting your LPA right is small. The cost of getting it wrong can be enormous, and it is paid from your estate — reducing what your family ultimately receives.
There is also a less visible cost: time. Court of Protection proceedings can take months. During that period, your affairs may be in limbo. Properties cannot be sold. Business decisions cannot be made. Tenancies cannot be properly managed. For a Sheffield landlord or business owner, months of inaction can translate directly into financial loss.
How to Choose an Attorney You Can Genuinely Trust
Given these risks, how do you make a good choice? Here is a practical framework for Sheffield donors thinking carefully about who to appoint.
Start with character, not relationship. The question is not who is closest to you, but who has the integrity, competence, and temperament to act in your best interests under pressure. A trusted friend with financial acumen may be a better choice than a close family member without it.
Consider appointing more than one attorney — carefully. Appointing attorneys to act jointly and severally (rather than purely jointly) allows each attorney to act independently, which avoids deadlock. If you appoint two or more attorneys to act jointly and severally, any one of them can take necessary action without requiring the other's agreement, while still providing a check on unilateral decisions through transparency.
Include a replacement attorney. Life changes. Attorneys may predecease you, lose their own capacity, or become unable to act. Building replacement attorneys into your LPA from the outset avoids a gap in authority that could require Court of Protection involvement.
Consider a professional attorney for complex estates. For Sheffield landlords, business owners, or those with significant or complex assets, appointing a solicitor or trust corporation as attorney — or as a co-attorney alongside a family member — provides professional oversight, accountability, and expertise. Professional attorneys are subject to regulatory oversight that family members are not. The additional cost is modest and the protection is substantial.
Brief your attorney thoroughly before you sign. Do not simply name someone and hand them the document. Have a detailed conversation about your values, your wishes, your financial arrangements, and your expectations. Ensure they understand the legal obligations the role carries. Consider whether they should speak with your solicitor to understand the scope of what is required.
Review your LPA periodically. Circumstances change. The person you appointed ten years ago may not be the right person today. Relationships evolve. Trustees become estranged. Health changes. There is no automatic mechanism for reviewing an LPA once registered, so the responsibility lies with you to revisit the document periodically and take advice if circumstances have materially changed.
Take professional advice when drafting. An LPA is a legal document with significant consequences. The government's online tool makes it technically possible to complete one without a solicitor, but the nuances — how attorneys are appointed to act, what guidance is included, how restrictions are worded — can have major practical implications. A solicitor with experience in estate planning can help you structure the document in a way that reflects your specific circumstances and reduces the risk of future disputes.
At Phoenix Estate Planning, we work with individuals, couples, landlords, and business owners across Sheffield and South Yorkshire to create LPAs that genuinely protect families — not just on paper, but in practice. If you have questions about your existing LPA or want to ensure your arrangements are as robust as they should be, we would welcome a conversation.
Getting your LPA right is not just about having one. It is about having the right one, with the right people in place, structured correctly from the start. The stakes are too high for anything less.