Life can throw up all sorts of practical challenges—holidays, hospital stays, or just needing a bit of help with the bills. A general power of attorney (GPA) is a simple legal tool that lets you appoint someone you trust to manage your finances while you still have mental capacity. It’s quick to set up and can be a real lifeline for short-term support. But, as with anything involving money and family, it can also be a source of tension if not handled carefully.

Let’s break down what a GPA is, where things can go wrong, and how you can set one up in a way that keeps everyone on side.

What is a General Power of Attorney?

A GPA is a legal document that allows you (the ‘donor’) to give another person (the ‘attorney’) authority to deal with your financial affairs. This could mean paying bills, managing your bank account, or handling day-to-day spending. The key point is that a GPA only works while you still have mental capacity. If you lose capacity—say, through illness or accident—the GPA ends immediately.

Because it’s so flexible and easy to set up, a GPA is often used for short-term needs. For example, if you’re going abroad for a few months and want someone to keep an eye on your finances, or if you’re recovering from surgery and need help with the admin.

Where Do Problems Arise?

Money and family can be a tricky mix. Even with the best intentions, a GPA can become a flashpoint for disputes, especially if there are underlying tensions. Here are two common scenarios:

• New Partner vs Adult Children: Imagine you’ve started a new relationship later in life. You give your partner a GPA so they can help with bills. Your adult children, however, worry that your partner might take control of your bank account or even sell assets without their knowledge.

• Siblings in Conflict: You appoint one child as your attorney, but the others feel left out or suspicious. Perhaps the attorney refuses to share bank statements or makes decisions without consulting anyone else.

These situations can quickly escalate, leading to mistrust, arguments, and sometimes even legal action.

How to Draft a GPA That Reduces Risk

The good news is that you can take practical steps to minimise the risk of disputes. Here’s how:

1. Narrow the Scope

Don’t give a blank cheque. Be specific about what your attorney can and cannot do. For example, you might allow them to pay household bills and manage a particular bank account, but explicitly exclude selling your home or making large investments. This gives everyone clarity and reassurance.

2. Dual Control for Major Decisions

Consider appointing two attorneys to act jointly for significant transactions—say, anything over £2,000. For everyday spending, they can act independently (jointly and severally). This means that for big decisions, both must agree, but for routine matters, either can act alone. It’s a simple way to build in checks and balances.

3. Clear Accounting and Transparency

Insist on regular, written records. For example, require your attorney to share monthly bank statements with a named relative or to keep receipts for any cash withdrawals. This isn’t about mistrust—it’s about transparency. If everyone can see what’s happening, there’s less room for suspicion.

4. Separate Accounts

Set up a dedicated bank account for your expenses. Your attorney should never mix your money with their own. This makes it much easier to track spending and spot any issues early.

5. Written Instructions

Include clear instructions in the GPA itself. For example: “My attorney must not sell my home,” or “All payments over £1,000 require written consent from both attorneys.” The more detail you include, the less room there is for misunderstanding.

What to Do If Concerns Arise

If you’re worried about how a GPA is being used, or if you’re an attorney facing family questions, here’s what you can do:

• Speak to the Donor First: If the person who made the GPA still has capacity, they can change it, add a second attorney, or revoke it altogether. Open, honest conversations can often resolve worries before they escalate.

• Upgrade to a Lasting Power of Attorney (LPA): If longer-term help is needed, a Property & Financial Affairs LPA offers more robust safeguards and is overseen by the Office of the Public Guardian. An LPA can continue even if capacity is lost, but it takes longer to set up.

• Watch for Red Flags: Unusual transfers, changes to correspondence addresses, or a refusal to share statements should be taken seriously. You can ask the bank to add alerts or temporarily pause access while things are checked.

A Real-World Example

Let’s say Mr K gives his partner a GPA to pay bills while he recovers from surgery. His adult children are uneasy about the arrangement, worried about how the money is being spent. While Mr K still has capacity, he revises the GPA: he adds his daughter as a co-attorney for any payments over £1,000, excludes the sale of his home, and requires monthly statements to be sent to both children. This approach reassures everyone and keeps things running smoothly. Later, when Mr K needs longer-term support, he creates an LPA with the same safeguards.

Key Takeaways

• Use a GPA for short-term, capacity-based help only.

• Be specific about what your attorney can do—don’t leave things open to interpretation.

• Consider dual control for major transactions and insist on regular accounting.

• Keep money separate and require transparency at every step.

• If concerns arise, act quickly—speak to the donor, review the GPA, and consider moving to an LPA if needed.

Final Thoughts

A general power of attorney can be a practical solution for life’s ups and downs, but it needs careful thought and clear boundaries. By planning ahead and building in safeguards, you can get the help you need without risking family fallouts. If you’re unsure, take your time, talk things through with everyone involved, and make sure your wishes are set out in writing.

Disclaimer: This article is for general information only and does not constitute legal, financial or tax advice. Every estate is different, and outcomes depend on your specific circumstances. Take time to familiarise yourself with the rules and keep your paperwork up to date.