What happens when a person is no longer capable of handling or managing their own affairs?
If you no longer have the mental capacity to look after your own affairs and you do not have a Lasting Power of Attorney (LPA), the Court of Protection will appoint a DEPUTY to manage your affairs for you. There may be significant legal fees to pay, plus annual supervision fees of up to £800, application fees, doctors certification fees, a security bond, a deputy fee and a long delay before the Deputy Order is issued, and the Deputy may not always be aware of your personal circumstances. This could apply to anyone, at any age, by reason of illness, disability or mental impairment who may no longer be able to deal with even simple matters like handling a bank or building society account, claiming benefits, handling tax affairs or transacting a house sale.
It is always better to prepare an LPA before a Deputy is appointed by the Court of Protection if possible.
Did you know that the British Bankers Association have confirmed that joint bank or building society accounts will
be frozen if ONE of the account holders lacks mental capacity and there is not a registered LPA or EPA in place?
The Property and Financial Affairs LPA allows you to choose a person or persons you trust to act with honesty
and integrity and make decisions about how to spend your money and the way your property and affairs are
managed. Once registered, and unless you have put a restriction on it, this type of LPA can be used by your
attorney(s) straight away.
The Health and Welfare LPA allows you to choose someone you trust to make decisions on your behalf relating
to your personal healthcare and welfare including decisions to give or refuse consent for treatment on your behalf
and deciding where you live. These decisions can only be taken on your behalf when the LPA has been registered
and you lack the capacity to make the necessary decision for yourself. Recent publicity has highlighted the plight
of residents in care homes being uprooted from the home they love and dispatched, like a parcel, to an
unfamiliar new address, this may be avoided with an LPA in place.
Whenever an attorney makes a decision under an LPA, by law they must act in the best interests of the donor who
has given them the power.
If you want to make plans for the future while you still have the mental capacity to handle your own affairs, creating
an LPA now will allow you to choose one or more people to act as decision-makers.
An LPA can be made by anyone aged 18 or over who has the mental capacity
but can only be used once it has been registered with the Office of the Public
The OPG (not Steele Rose) may charge an additional administration fee
of up to a maximum of £130 if registration is required, based upon the
Donor's income and any associated fee remission or exemption.