How can a Power of Attorney Manage Finances?

19th November 2025

Updated: Tuesday 3rd February 2026

How an Attorney Can Manage Finances? is a question many people only start asking once they have already taken on the role for a donor. Acting as an attorney under a Property and Financial Affairs Lasting Power of Attorney places you in a position of significant trust, giving you legal authority to handle someone else’s money when they can no longer manage it themselves. Knowing exactly what this responsibility involves helps protect the donor’s interests and gives you confidence that you are acting correctly from the very start.

What financial authority does an attorney have?

An attorney appointed under a Property and Financial Affairs LPA can manage most aspects of the donor’s financial life. This includes day to day and longer term decisions that keep their affairs running smoothly.

Typical responsibilities include managing bank and building society accounts, paying household bills, collecting pensions or benefits, dealing with investments, and budgeting for care costs. In some cases, this can also include buying or selling property, provided decisions are made carefully and in line with the donor’s best interests.

The authority only applies once the LPA has been registered with the Office of the Public Guardian. Until registration is complete, the attorney cannot act.

Can an attorney withdraw money from the donor’s bank account?

Withdrawing money is allowed, but only after the LPA is registered and the bank has recognised the attorney. Most banks will add the attorney to the donor’s accounts once they see the registered LPA and proof of identity.

This access allows withdrawals for everyday expenses such as food, transport, care costs, or utilities. It also allows attorneys to set up Direct Debits, manage standing orders, check balances, and speak directly to the bank.

Money must only ever be used for the donor’s benefit. Using funds for personal reasons, lending money to yourself, or making gifts outside the strict rules is not permitted.

How does an attorney set up bank access correctly?

Each bank has its own process, but most require the registered LPA, photographic identification and proof of address. Many UK banks now have specialist Power of Attorney teams, which makes the process clearer and faster than in the past.

Once set up, some banks allow attorneys to manage accounts online, while others may limit access to branch or telephone services. It is worth asking what options are available so finances can be managed efficiently.

Why is record keeping so important?

Keeping accurate financial records is a legal requirement for attorneys. This includes saving bank statements, receipts, and notes explaining significant decisions or transactions.

If the Office of the Public Guardian ever raises questions or investigates a concern, these records show that you have acted properly and in the donor’s best interests. Good record keeping protects both parties and helps avoid misunderstandings with family members.

What does acting in the donor’s best interests mean?

Every decision must focus on the donor, not on preserving money or future inheritance. This involves considering their needs, comfort, and quality of life. Where possible, the donor should still be involved in decisions, even if capacity is reduced.

Attorneys should respect the donor’s past wishes, values, and lifestyle and avoid unnecessary financial risks. Spending money to improve care or wellbeing is often entirely appropriate.

Why clarity at the start makes everything easier

Managing someone else’s finances can feel daunting, but clear legal authority and guidance make the role manageable. Setting up a Property and Financial Affairs LPA through Power of Attorney Online ensures the document is accurate, registered correctly and ready to be used when needed.

With the right preparation, being an attorney becomes a practical and compassionate way to protect someone’s financial stability and dignity, while staying firmly within the law.