Dealing with the donor's debts
Guidance from Estate Advisory Group
Attorneys inherit the post. Debts must be dealt with in the donor's interests, in the right order.
Priority order
- Care fees, rent or mortgage, council tax, energy — anything that risks the donor's home or care.
- Court fines and arrears with enforcement powers.
- Unsecured credit: cards, loans, catalogues.
- Family loans, which are last and need particular care because of the conflict.
Tell creditors about the capacity position
Send a copy of the LPA and, where you have it, medical evidence of the donor's condition. Most lenders have a mental health policy and will freeze interest, stop collection activity, and in some cases write off small balances. Use the Money and Mental Health evidence form if the GP will complete it.
Where to get help
Free advice exists and is better than ours
StepChange, National Debtline and Citizens Advice all deal with attorneys acting for someone else, free of charge. Bankruptcy or a debt relief order for the donor should only be considered with that advice.
Common questions
Am I personally liable for the donor's debts?
No, provided you act within your authority and keep the donor's money separate from yours.
Can I stop paying a debt I think is wrong?
Dispute it in writing rather than simply stopping payment, and record your reasoning.
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This is general information about how Lasting Powers of Attorney work in England and Wales. It is not legal advice about your situation. What we do and do not do.
Published by Estate Advisory Group