More powers of attorney challenged by courts

Record numbers of people trusted to look after the finances of vulnerable people are being struck off by the authorities. A “donor” can set up a power of attorney arrangement so that if they lose the ability to look after their own affairs, a nominated person can make decisions on their behalf.

The number of new arrangements registered has rapidly increased in recent years, but new figures show an even quicker rise in the number of “attorneys” being investigated and even discharged for misconduct.

Data obtained under the Freedom of Information Act shows that in 2013, 68 attorneys and deputies (attorneys appointed by the Court of Protection) were removed because of financial mismanagement or alleged theft.

The figure rose to 203 in 2014 and fell slightly to 172 last year, but this still equates to a 153pc rise on 2013 levels. Over the same period the number of applications to register new lasting power of attorneys only rose by 73pc.

There has also been a steep rise in the investigations into attorneys and deputies over financial wrongdoing – from 487 in 2013, to 885 in 2015.

Ben Tyer, of GLP Solicitors, who filed the data request, said he frequently saw cases where attorneys abuse their position to make decisions in their own interests.

An example could be where a child uses their parent’s cash to make home improvements to their own house where they can’t prove this is in the donor’s character.

Mr Tyer said: “Financial abuse is perhaps more widespread than is thought, so loved ones, local

‘Financial abuse is perhaps more widespread than is thought’

authorities and banks should be alert to the signs.”

If an arrangement is not set up before someone loses mental capacity, friends and family have to apply to the Court of Protection, incurring court fees and blocking access to bank accounts for weeks. Dementia and Alzheimer’s recently replaced heart disease as Britain’s biggest killer, suggesting incidences could rise.

An Office of Public Guardian spokesman said the rise was due to “better investigations”.