Why Attorneys Can’t Continue to Use Bank Accounts After the Donor’s Death?

The common misunderstanding

It’s a question we hear far too often: “Mum gave me Power of Attorney, so I can still pay her bills now she’s passed away, right?”

Sadly, no. This is one of the most common — and potentially costly — misconceptions we see. Even if you’ve been looking after someone’s finances for years, the moment they die, your authority as an attorney stops. Any payments, transfers, or withdrawals after that point are not only invalid — they could land you in legal trouble.

Why LPAs end immediately on death

A Lasting Power of Attorney (LPA) — or its older cousin, the Enduring Power of Attorney (EPA) — is only valid while the donor (the person who made it) is alive. When they pass away:

• ✅ The LPA/EPA is automatically cancelled.

• ✅ Your attorney role ends instantly — there is no grace period.

• ✅ Only the executor or administrator has legal authority to deal with the estate.

• ✅ Banks will freeze accounts until they see the right paperwork (usually a Grant of Probate or Letters of Administration).

  
  

Think of an LPA like a theatre ticket — it gets you through the door while the show is running, but when the curtain falls, it’s no longer valid.

Don’t “help” by paying for things after death

We understand the temptation to pay for the funeral or clear an urgent bill using the donor’s bank account — especially if you’ve been doing it for years as attorney. But once they’ve died, you must not take money out for anything, no matter how helpful you think it is.

The correct process is:

• The bank account should be frozen as soon as possible after death to prevent any further payments being deducted.

• There is a strict legal order for paying debts and expenses on death.

• Getting that order wrong can leave you personally liable for the shortfall.

  
  

Funerals can be paid from the estate — but it should be the executor or administrator arranging this through the proper channels.

What happens next

If you were both attorney and executor:

• Your attorney duties stop immediately.

• You then “switch hats” and begin acting as executor, following the Will (or intestacy rules if there’s no Will).

  
  

If you were attorney but not executor:

• You must step back completely.

• You hand over all documents, records, and any funds to the executor or administrator.

  
  

Why it matters

Continuing to access bank accounts after death — even to “help” — can be classed as misappropriation of funds. This could lead to:

• Disputes with beneficiaries

• Demands for repayment

• Potential legal consequences

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We’ve sadly seen attorneys face accusations of theft, not because they were dishonest, but because they didn’t realise the legal rules.

Attorney vs Executor — What’s the Difference?

Role	When it Applies	What You Can Do	When it Ends
Attorney under an LPA/EPA	While the donor is alive but unable (or chooses not) to manage their own affairs	Manage finances, pay bills, deal with property, make decisions (depending on LPA type)	Immediately on death of the donor
Executor	After death, if named in the Will	Collect assets, pay debts, deal with tax, distribute the estate according to the Will	When the estate is fully administered
Administrator	After death, if no Will (or no executor available)	Same duties as an executor, but appointed by the court under intestacy rules	When the estate is fully administered

An LPA is for life, an executor role is for after death. They’re entirely separate legal powers.

If someone you’re acting for passes away, stop all financial transactions immediately and get professional advice before touching a penny. Even well-intentioned payments can cause legal and financial headaches later. At Toucan Law, we’ll guide you through what you can do, who should take over, and how to keep everything above board — so you can focus on what matters most.