If someone advises you to set up a lasting power of attorney, or LPA, one of your main questions is likely to be: what will happen if I don’t? Not setting up the LPA could have serious consequences.
What is a lasting power of attorney?
An LPA is a legal document that states who you have chosen to control your affairs if you no longer have the mental capacity to make decisions for yourself. There are two different types of LPAs: one designates the person or people to make your medical decisions, the other to handle financial matters. You can set up a power of attorney online at specialist sites like https://powerofattorneyonline.co.uk.
What happens if you do not have an LPA?
You may lose mental capacity at any time without warning, such as after a stroke. The Court of Protection decides if you legally have mental capacity, based on the process set out in the Mental Capacity Act 2005. If you are found to lack mental capacity and you do not have an LPA, your family may have to go to court, a lengthy and expensive process, before they are able to act on your behalf. The Court of Protection may even appoint someone else, such as a social worker.
Without an LPA, if you do unexpectedly lose mental capacity, there is a risk that someone you do not trust will gain control of your assets and make decisions that are not in line with your wishes. That is why the LPA is so important.