What happens when a person is no longer capable of handling or managing their own affairs?
If you are unable to look after your own affairs, and you do not have a Lasting Power of Attorney, the Court of Protection will appoint a Deputy to manage your affairs for you. There will probably be significant legal fees due and the Deputy may not 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 or transacting a house sale.
Unlike the old Enduring Power, which was one short document, The Lasting Power of attorney has two sections which can be made separately or together.
1. The Property and Affairs LPA allows you to choose a person you trust to 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 attorneys straight away. This effectively replaces the old Enduring Power of Attorney.
2. The Personal Welfare LPA which allows you to appoint somebody to look after YOU and your personal welfare and healthcare. This effectively replaces what was commonly known as the ‘Living Will’.
for more information see Make a Lasting Power of Attorney.