The Risks of Not Having Lasting Powers of Attorney in Place

Life is unpredictable, and while most people are aware of the importance of a will, fewer recognise the value of setting up Lasting Powers of Attorney (LPA).

An LPA is a legal document that enables you to appoint someone you trust to make decisions on your behalf if you lose the capacity to do so. This can cover decisions relating to property and finances and health and welfare decisions.

Without an LPA, you and your loved ones face significant financial, legal, and emotional challenges.

Loss of Control Over Decisions

One of the primary risks of not having an LPA is losing control over who makes decisions on your behalf.

If you lose mental capacity due to illness, injury, or age-related conditions like dementia or Alzheimer’s, no one automatically has the legal authority to act for you—not even your spouse or children.

In such cases, a court may need to appoint a Deputy, which can be time-consuming, costly, and stressful. Worse, the appointed deputy may not be someone you would have chosen, leaving your preferences and values at risk of being overlooked.

Financial Risks

Without an LPA for property and financial affairs, your loved ones could face significant difficulties managing your finances. They would not be able to access your bank accounts, pay bills, or make decisions about your investments and property. This can lead to missed payments, unnecessary financial losses, and even legal action in severe cases.

For example, if your mortgage or utility bills go unpaid due to a lack of access, penalties or service disruptions could occur. Additionally, financial opportunities, such as selling a property or adjusting investments to cover care costs, may be lost due to delays in obtaining court approval.

Challenges in Health and Care Decisions

A health and welfare LPA allows someone to make decisions about your medical treatment, living arrangements, and day-to-day care if you are unable to do so. Without one, these decisions will be made by healthcare professionals or social services, rather than your family.

For instance, you may have strong preferences about life-sustaining treatment, but without an LPA, your loved ones may not have the legal authority to enforce your wishes. This could result in decisions that conflict with your values, beliefs, or desired quality of life.

Emotional and Financial Strain on Loved Ones

When an LPA is not in place, your family may need to apply to the Court of Protection to be appointed as your Deputy. This process can take months and cost thousands of pounds in legal fees, court fees, and ongoing reporting requirements. The delay can cause significant emotional stress, particularly if urgent decisions need to be made.

Moreover, the administrative burden of managing your affairs as a Deputy is much higher than acting as an attorney under an LPA. Deputies are required to provide detailed accounts to the court, which can be both time-consuming and intimidating.

Missed Opportunity for Future Planning

An LPA allows you to plan for potential future incapacity on your own terms. Without it, you forfeit the chance to ensure your wishes are respected, leaving critical decisions to others.

Conclusion

The risks of not having a Lasting Power of Attorney are too significant to ignore.

By taking the time to put an LPA in place, you protect yourself and your loved ones from unnecessary legal, financial, and emotional challenges. It’s a proactive step that ensures your affairs are managed according to your wishes, even if you are unable to make decisions yourself.

We at Dickinson Parker Hill have been advising families for over 200 years on how to protect their estate and put in place important legal documents like Lasting Powers of Attorney. It is important to take professional advice when considering Lasting Powers of Attorney and be wary of people who say you can simply do it yourself.

Lasting Powers of Attorney are powerful legal documents and it is important to take appropriate advice.

If you would like to put in place Lasting Powers of Attorney, please call our offices on 01695 574 201 or 01704 504 381 to make an appointment or contact us by email.