Power of Attorney: Can I Borrow Money From the Donor?
Short answer: No, not without proper authority.
If you are acting as an attorney under a Lasting Power of Attorney or an old Enduring Power of Attorney, you cannot simply borrow money from the person whose finances you are looking after.
That person is called the donor.
You are the attorney.
Being their attorney gives you responsibility for their money. It does not make their money yours.
Can I borrow money if I intend to pay it back?
No, not just because you intend to repay it.
The Office of the Public Guardian is quite clear on this.
An attorney does not have authority to take a loan from the donor’s money for themselves, or to lend the donor’s money to somebody else.
If there is a genuine reason for a loan to be made, you may need to apply to the Court of Protection for permission before the money changes hands.
So this is not a case of:
“I’ll borrow £10,000 from Mum and put it back next year.”
You are dealing with someone else’s money while acting in a legal role.
That changes things.
But what if the donor agrees?
This is where it can get messy.
If the donor still has the mental capacity to make a particular financial decision, then it remains their decision.
Having a Power of Attorney does not mean that the donor has lost control of their own money.
Your job, where possible, is to help them make their own decisions rather than simply take over.
But I would be very careful if the decision involves lending money to you, the attorney.
You now have an obvious conflict.
You are supposed to look after the donor’s interests while at the same time benefiting personally from the decision.
That is not a good place to be.
If there is any doubt, get proper legal advice before doing anything.
Does having a Power of Attorney mean the donor has lost mental capacity?
No.
This causes a lot of confusion.
A Lasting Power of Attorney is often put in place before it is needed.
A Property and Financial Affairs LPA must be registered before it can be used, but the donor may still have full mental capacity.
Mental capacity is also not an all-or-nothing thing.
Someone may be able to make one decision but not another.
They may understand an everyday purchase but struggle with a complicated investment or large financial transaction.
Where the donor can make the decision themselves, you should support them to do so.
What are my duties as an attorney?
There is a legal term called a fiduciary duty.
It sounds complicated.
The idea is not.
You have been trusted with power over somebody else’s money or property.
You must use that power for their benefit, not yours.
In plain English:
Look after their money as their money.
Do not mix it up with your own money.
Do not use it because you are short this month.
Do not move money to yourself because “they would have wanted me to have it anyway”.
Do not treat the account like a family pot.
The Office of the Public Guardian can ask you to account for what you have done, and you can be ordered to repay money if you misuse it or make decisions which benefit you personally.
What records should I keep?
If you are managing somebody else’s finances, keep records.
That means keeping details of:
- money coming in
- bills and spending
- major financial decisions
- transfers
- gifts
- expenses you have claimed
- advice you have taken
You should also keep the donor’s money separate from your own, unless there is already a legitimate joint arrangement such as a joint bank account.
This may feel excessive when you are simply helping Mum, Dad or another family member.
It isn’t.
If anyone questions a payment two years later, “I’m sure Mum said it was OK” is not much of a record.
Can I give away the donor’s money?
Sometimes, but there are strict limits.
This is different from borrowing money.
Attorneys can make some normal and reasonable gifts, such as certain birthday or wedding gifts, depending on the circumstances.
You cannot simply start giving away large sums because you think that is what the donor would have wanted.
For larger or unusual gifts, you may need permission from the Court of Protection.
The size of the donor’s estate also matters.
A £100 birthday gift may mean nothing to someone with £1 million.
It may mean quite a lot to someone with £4,000 in the bank and care fees to pay.
What if I have already borrowed money?
Do not ignore it.
Do not invent a loan agreement afterwards and hope that fixes everything.
And definitely do not start moving more money around to make the bank statements look better.
Get advice.
Depending on what has happened, you may need to repay the money and there may be a need to contact the Office of the Public Guardian or apply to the Court of Protection.
The OPG can investigate attorneys where there are concerns about misuse of a donor’s money or decisions made for the attorney’s own benefit.
So, can an attorney borrow money from the donor?
Not using their powers as attorney without proper authority.
That is the simple answer.
If you think there is a valid reason for a loan, particularly one involving you or another family member, get legal advice before the money moves.
It is much easier to ask the question beforehand than explain the bank transfer afterwards.
A final point
Most attorneys are not trying to steal anybody’s money.
They are usually sons, daughters, partners or friends trying to help someone they care about.
That can make the boundaries less clear.
You may have been borrowing money from Mum for years.
Dad may always have helped the grandchildren.
You may all regard the money as “family money”.
But once you start acting as an attorney, you have legal duties.
The donor’s money remains the donor’s money.
Treat it that way and you will avoid most of the problems.
Reviewed August 2026. This article relates to Powers of Attorney in England and Wales. It gives general information only and is not legal advice. If you are unsure about a loan, gift or other use of the donor’s money, speak to a solicitor or the Office of the Public Guardian before acting. Stuck or not sure, get in touch.