Attorney Conflicts and Self-Dealing Risks in LPAs
How conflicts of interest emerge in attorney decisions, why self-dealing is high risk, and controls to reduce exposure before problems escalate.
Why conflict controls matter
Attorneys are fiduciaries. Personal benefit decisions can quickly become legal exposure if not clearly authorised and evidenced.
Typical conflict scenarios
- Paying oneself from donor funds without clear basis
- Purchasing donor assets privately
- Routing donor payments through personal accounts
- Preferential transfers to one branch of family
Self-dealing risk
Self-dealing creates structural conflict because attorney and beneficiary interests can diverge. Even well-intended conduct can be challenged if process and authority are weak.
Practical controls
- Keep donor and personal finances fully separate
- Use independent valuations for major asset decisions
- Log decision rationale and consultation trail
- Escalate unclear gifting/conflict questions before acting
When to seek formal advice
If the transaction is unusual, high-value, or benefits the attorney directly, get legal advice before execution.
Next reading
Related guides
Gifting Rules for Attorneys: MCA Section 12 Explained
What gifts attorneys can and cannot make under Section 12, when court approval is needed, and how to document gifting decisions safely.
LP1F Financial Decisions
Attorney Record-Keeping: What Good Accounts Look Like
The record-keeping standard attorneys should maintain for transactions, major decisions, reimbursements, and audit resilience.
Attorney Duties and Recordkeeping
Objecting to an LPA and Safeguarding Concerns: Practical Routes
How concerns about pressure, fraud, or attorney misconduct can be raised during registration or after activation, and what evidence helps.
Objections and Disputes
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