Without a Property and Financial Affairs LPA, your loved ones will have to make an application to the Court of Protection to be granted the authority to manage your financial affairs (this is called a “deputyship order”). In the interim, the bank will freeze your accounts and potentially leave your affairs in limbo.
A deputyship application is time-consuming and more expensive than preparing an LPA. The Court also places ongoing obligations on those appointed; for example, deputies must submit a report every year enclosing financial accounts and details of decisions made on your behalf.
If you lose mental capacity without a Health and Welfare LPA, decisions about your health will be made by the medical professionals involved in your case or the local authority. While it is usually the case that these authorities act respectfully and consult your family, there are instances where the medical professionals and family members disagree.