What is power of attorney (and how is Family Connect different)?

Power of Attorney (POA) is a legal agreement. It allows someone who may help to make safe financial decisions to nominate another person to act for them.

It’s a common misconception that a POA can be used to support people who have lost capacity to make decisions. Actually, a POA can only be drafted with the consent of a supported person with full capacity, and is used when they just want someone to look after their finances for a time, for example if they’re travelling or experiencing a bereavement. If the supported person then loses capacity, the POA will normally cease.

Lasting Power of Attorney (LPA) agreements, on the other hand, were created to provide on-going care after loss of capacity. There are different types of LPA. One is to manage property and affairs and another is to manage health and welfare.

Professional legal advice is recommended for anyone who wants to draft a POA or LPA, and LPAs must be registered with the Office of the Public Guardian.

Family Connect is not a POA or LPA service. It’s only suitable for people who can accept our terms of service and give explicit consent to share their data.

But it’s a great solution if you need oversight of someone’s financial affairs, so you have the peace of mind that you’re there to spot any unexpected transactions. It’s also ideal for those who are learning to manage their money and just need a little support, as well as for those who struggle with finances and want to lean on a trusted family member.

It can be set up in minutes and doesn’t require any complex legal arrangements. Plus, there are no long-term commitments. The Account Holder sharing a view only look at their bank transactions has the confidence that their money is still theirs to manage, as their Trusted Person can’t make or stop payments on their behalf. Meanwhile, the Trusted Person can get notifications of spending and can see transactions, so they can keep an eye out for unexpected activity and financial errors, and for scams or fraud.