Elderly financial abuse is a growing concern, with many vulnerable individuals falling victim to scams, coercion, or financial exploitation by fraudsters, caregivers, or even family members. One of the most effective ways to protect yourself against this type of abuse is by setting up a Lasting Power of Attorney (LPA).

What Is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that allows you (the donor) to appoint one or more trusted individuals (attorneys) to manage your affairs if you lose mental capacity due to illness, dementia, or old age. There are two types of LPAs: 

• Property and Financial Affairs LPA – Covers managing bank accounts, paying bills, selling property, and handling investments.
• Health and Welfare LPA – Covers medical care, living arrangements, and daily well-being.

Setting up an LPA ensures that financial and health decisions are handled by someone you trust rather than leaving it to chance or risking financial exploitation.

How an LPA helps prevent elderly financial abuse

1. Gives control to trusted individuals
   Without an LPA, decisions about your finances could be left to individuals who do not have your best interests at heart. By appointing an attorney, you ensure your finances are managed responsibly and ethically.
2. Legal safeguards and oversight
   LPAs must be registered with the Office of the Public Guardian (OPG) before they can be used. The OPG monitors attorneys and can investigate suspicions of financial abuse, helping prevent fraud or mismanagement.
3. Reduces the risk of coercion and scams
   Scammers, rogue traders, or even manipulative family members often target older individuals.  Since an LPA requires an independent witness and a certificate provider (such as a solicitor or doctor), it reduces the risk of undue influence or coercion in financial decision-making.
4. Prevents unauthorised access to finances
   A Property and Financial Affairs LPA ensures that only the appointed attorney can manage accounts, pay bills, or sell assets. This helps prevent unauthorised individuals from accessing or misusing funds.
5. Enables early intervention in case of abuse
   If you do not have an LPA and lose capacity, your relatives may need to apply for a Deputyship Order, which is a longer and more expensive legal process. Having an LPA ensures immediate action can be taken to safeguard your finances if any suspicious activity arises.

Steps to set up an LPA for financial protection

1. Choose a trusted attorney – This should be someone reliable, such as a close family member, friend, or professional adviser.
2. Decide on restrictions –You can specify limits on the attorney's powers, such as requiring joint decision-making for large financial transactions.
3. Get an independent certificate provider – This ensures that the LPA is set up freely and without pressure.
4. Register the LPA with the Office of the Public Guardian – The LPA must be registered before it can be used.
5. Keep financial records – Attorneys should maintain records of financial transactions to ensure transparency and accountability.

Protect yourself today

A Lasting Power of Attorney is crucial in protecting yourself from financial abuse. By appointing a trusted attorney, you can safeguard your finances, reduce the risk of exploitation, and ensure peace of mind for you and your family.

Need expert advice on LPAs?

At Switalskis, we have extensive experience in Lasting Power of Attorney and safeguarding against financial abuse.

Contact us today to ensure your finances remain protected. Call us on 0800 1380 458 or email help@switalskis.com