Our Recent Posts

Archive

Tags

No tags yet.

What happens if you do not have a Lasting Power of Attorney and lose mental capacity

If you lose mental capacity as a result of an accident or medical condition, you will either have a Lasting Power of Attorney in place beforehand or you will not. Lasting Powers of Attorney cannot be written after you have lost mental capacity.

If you DO NOT have a Lasting Power of Attorney in place and suffer loss of mental capacity, then the following happens:

  • The Court of Protection will take control of your property and money for the remainder of your life.

  • The court will appoint a Deputy to handle your affairs. Your deputy is usually a spouse, partner or family member. Your deputy will report to the Office of the Public Guardian (OPG). Any family member may apply for deputyship, so this may lead to a dispute within the family.

  • The Office of the Public Guardian will determine the level of supervision you require and the annual fees you pay.

  • Your family may need to use a solicitor to obtain the court order which appoints your deputy. Currently this costs £2000 or more.

  • Your deputy may have to pay for a security bond every year. This is a financial arrangement which protects you from any loss which you may suffer as a result of your deputy's handling of your financial affairs. The judge will set the level of security depending on the circumstances of your case.

  • Until a deputy is appointed your assets will be frozen. This can take the courts a long time - up to 6 months or more if there is a dispute within the family. Any jointly owned property cannot be sold.

  • Your deputy will be require to complete an annual report accounting for all money spent; this includes shopping receipts and other day to day expenses.

  • An initial assessment fee is charged immediately.

  • Thereafter an annual fee (currently up to £320) is charged to pay for the OPG's administration costs.

If you DO have a Lasting Power of Attorney, all these problems can be avoided by giving a trusted family member control over your financial affairs. This means no delays, no courts, no annual reports and no ongoing fees.


 

0800 1313 050

Nethercliffe Cottage, Encombe, Sandgate, Folkestone CT20 3DE, UK

©2020 by Interwill Inheritance Solutions.