What happens if I don’t have a Lasting Powers of Attorney?

If you become incapable of making decisions for yourself and have not appointed another person as an attorney, your personal affairs would become the responsibility of the Office of the Public Guardian and it may be necessary for the Court of Protection to become involved. The Court will appoint a person, (called a Deputy) to make decisions on your behalf. The major disadvantages of not having a Lasting Power of Attorney in place are firstly the possible delay in dealing with your affairs and secondly the cost of making a Deputyship application, which is likely to be much more expensive than making a Lasting Power of Attorney and registering it and there are on-going yearly costs payable to the Court of Protection.

On the receiving end…

Susan’s life changed after an accident left her husband Peter in a coma; and, thanks to the Court of Protection, three years of pain and misery followed. This is her story:

In December 2006, Peter suffered a stroke, and in hospital collapsed into a coma from which he did not recover.  He had critical illness cover so I thought our financial position was secure but my three-year nightmare was only just beginning.

We still both working at the time but to continue living in the way that we had always done, I needed access to the money in Peter’s account, especially as the payment from his critical illness policy had been paid into it

As Peter couldn’t sign I was told that I had to deal with the Court of Protection. However, rather than being the answer to all my prayers it brought me anger, grief and frustration.

Over the years that followed Peter’s stroke I had to learn to accept a new reality, to settle into a different way of life. But parallel to this I had to come to terms with the Court of Protection which was completely out of tune with what we were going through.

We are advised to take out life assurance and critical illness cover but hardly anybody tells us to take out a Lasting Power of Attorney.

Yet, in a case like ours, this is the only way to avoid the Court of Protection. As I was to find out, if someone hasn’t granted Power of Attorney to anyone, their affairs are placed under the jurisdiction of the Court. It appoints a Receiver to act on their behalf in the everyday running of his or her affairs and the Receiver is answerable to the Court.

In its treatment of Receivers the Court does not distinguish between spouses, close family members or complete strangers. So, despite being married, I had to apply to the Court to be appointed his Receiver.

Who is the court protecting and from whom? As the months went by it appeared that the Court’s primary role was to protect my husband from me! The Court seemed to be doing all it could to place a wedge between him and me. From day one, the Court stepped into my life away and took away my adult independence.

Here are two examples:

1. The Court fees were horrendous: commencement fees, appointment fees, administration fees, account fees, wind up fees. Over 3 years over £3,000 was spent on Court fees and accountant’s fees

2. Even though I was now Peter’s Receiver I had to get the Court’s permission to spend over £500 in any one transaction, even to pay my son’s university and accommodation fees.

The Court of Protection, no doubt, has a role to play in some family situations, but in our case it made life difficult. Yet all of this could have been avoided if only I had known how!