The recent podcast series The Willpower Detectives – Shadow World (https://www.bbc.co.uk/programmes/m0025vhg) garnered a lot of attention. Rightly so. The podcast highlighted quite staggering abuses of the authority given to Ron Hiller – a partner (but not a solicitor) at an Essex based law firm.The podcast exposed that Ron Hiller used powers of attorney to take over the financial affairs of vulnerable clients.In some cases this involved clearing and selling their homes, leaving them without information about their finances and charging in excess for work done.
The most recent episode of this podcast – Nearest and Dearest – highlights the issues that can arise if a trusted family member goes rogue, taking over the affairs of a vulnerable relative, isolating them from support systems and sometimes helping themselves to that person’s assets.
In the UK, powers of attorney are legal documents that grant individuals the authority to make decisions on behalf of someone else, typically when the person is unable to make decisions themselves. However, there has been growing concern over the abuse of powers of attorney, particularly in cases involving vulnerable adults. Some 8 million Powers of Attorney are registered with the Office of the Public Guardian.
A Lasting Power of Attorney (LPA) is most commonly used when an individual is unable to manage their financial affairs or make health-related decisions. The appointed attorney, often a family member or trusted friend, is supposed to act in the best interests of the person they are representing. Unfortunately, some individuals misuse this power for personal gain. Financial exploitation is one of the most common forms of abuse, where attorneys may siphon money from the person's accounts, sell property without consent, or make decisions that benefit themselves rather than the person they are supposed to protect.
The risk of abuse increases when the person granting the power is elderly, suffering from dementia, or otherwise incapable of overseeing their affairs. In such cases, the individual may not fully understand the implications of the LPA or may be coerced into signing it. Sadly, this can result in attorneys making harmful decisions or exploiting the person’s assets, leaving them vulnerable to further abuse.
The Office of the Public Guardian (OPG) oversees the registration of LPAs and investigates allegations of abuse. Such investigations can only take place, however, if concerns are raised during a person’s lifetime. Powers of Attorney cease to have effect upon death and in many cases abuses of the Power of Attorney only come to light after someone has died.Once the Power of Attorney ceases to have effect the Office of the Public Guardian loses any right to make enquiries.
Sadly our team have seen a number of cases where a family member has used a Power of Attorney to their own advantage. In one case a parent was moved out of their home – which was then sold – and taken to live near to the child who had Power of Attorney. Their funds were then used to complete renovation and re-decoration/extension work on that child’s home leaving the parent out of pocket by over £200,000. A campaign of isolation was waged with the parent being told his other children did not want to see him and those children themselves being given no information about where their father was.
In other cases we have seen Attorneys who have funded quite lavish lifestyles at the expense of a parent and in one case a grandchild (as happened in the case covered by the latest episode of this BBC podcast) who completely took over her grandmother’s affairs and ousted all other relatives including her own mother.
To put matters in context, Powers of Attorney are still an effective means by which a person can appoint people they trust to help them if they become unable to manage their own affairs.Powers of Attorney can avoid the expense and delays that may occur if someone loses capacity and a Deputyship Order is required. They allow family members – or trusted professionals – to help people who may be temporarily unable to manage their finances or how may have deteriorating health and need longer term help. Less than 1% of the 8 million registered Powers of Attorney give rise to a challenge or complaint to the OPG.
The key is to be aware of the risks if you are granting a Power of Attorney and to appoint more than one person wherever possible. Attorneys can then hold each other to account and provide important safeguards.
Record keeping is also essential – Attorneys should ensure they can evidence any money that is spent and justify how that meets the needs of the person whose interests they are looking after.
Transparency is also vital – wider family should be aware of what is going on and be able to ask questions (and get answers) if they have concerns. Increasing awareness and vigilance can help protect vulnerable individuals from exploitation and a report should be made to the Office of the Public Guardian – or even the police – if there are significant concerns or if answers are not given.
If you are considering granting a Power of Attorney take professional advice and remember that if you still have capacity and want to change your mind you can revoke the Power of Attorney and appoint someone else.
Overall just be careful who you trust and consider managing both your risk and that of your chosen Attorneys by appointing more than one person to help you.
If you are concerned about how someone is operating a Power of Attorney take urgent legal advice or raise your concerns with the Office of the Public Guardian as soon as possible.
The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.
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